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New car interest increased in October, after LTA announced that the overall COE supply will increase by 7% in the upcoming quarter.
27 Oct 2020
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COE supply for Nov-2020 to Jan-2021 period announced
The LTA has announced that the total COE supply for the Nov-2020 to Jan-2021 period will go up by 7%. Cat A COE supply will decrease by 2%, while Cat B will see a significant 16% increase. Combined with the 3% increase in Cat E supply, total passenger car COE quota will increase by 6%.
| Cat A | Cat B | Cat E | Total passenger car COEs | |
Avg Monthly Quota for Nov to Jan 2021 Bidding Exercise |
1,925 | 2,014 | 926 | 4,865 |
Monthly Quota for Aug to Oct 2020 Bidding Exercise |
1,967 | 1,729 | 903 | 4,599 |
% Change (Quarter on Quarter) |
-2% | 16% | 3% | 6% |
With Cat A supply set to decrease, this will put upward pressure on Cat A COE premiums in the coming months. However, the 16% increase in Cat B supply will put downward pressure on Cat B premiums.
Ron Lim, Head of Sales & Marketing, Tan Chong Motor Sales, tells us, "For Cat B, although the COE supply will increase, the introduction of many new Cat B models will likely continue to support buying demand. On our end, we continue to see strong interest and demand for our Serena e-POWER. Given this, we do not see Cat B COE premiums shifting much from the current level even with more COEs available."
New car buying interest increases
"Purchasing cars is likely to become a priority for many Singaporeans after this pandemic. Many families in Singapore, especially those with vulnerable elderly and young children, are leaning towards owning their own vehicle now as hygiene and safety takes precedence during commutes," says Ricky Tay, Managing Director, Volkswagen Group Singapore.
"Demand for both Volkswagen and Skoda cars has seen a steady increase in the recent months and we expect this to continue especially with the sensible pricing across our model range," he adds.
Minimal movement in COE premiums
Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, increased by $800 (2.2%) and ended at $37,334 this bidding round.
Premiums for Cat B, for larger cars with more than 130bhp or engine displacements larger than 1,600cc, likewise saw only a slight upward bump this bidding round, rising by $300 (0.7%) to reach $40,990.
In Cat E, the open category, premiums fell by $412 (1.0%), closing at $39,889.
New car price adjustments mixed amongst dealers
More than 40% of dealers, including brands such as BMW, Lexus and Subaru, did not adjust their new car prices for both Cat A and Cat B models.
Some other dealers did make some price adjustments. Toyota and Volkswagen increased prices for Cat A cars by at least $1,000. For Cat B, prices at many dealers remained unchanged, while brands including Mazda, Nissan, Skoda and Toyota all reduced prices. The adjustment in Cat B prices are likely a bid to attract new customers ahead of the expected growth in Cat B COE supply for the upcoming quarter.
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