Singapore’s COE prices for November 2025 show a continued decline for small and medium-sized cars, with premiums falling below $110,000. In contrast, COE premiums for large and luxury cars have rebounded in the latest bidding exercise, nearing the $130,000 mark. The second round of COE bidding for November closed on Wednesday afternoon (19 November). Premiums for Category A — which covers smaller cars and caters to mass-market demand — fell by $1,002 (0.91%), to $109,000. For Category B, which comprises large and luxury cars, premiums rose by $14,889 (12.95%) to $129,890. Open Category E — which is generally used to register Category B cars — increased by $3,991 (3.30%) to $125,001. Commercial vehicle (Category C) premiums inched up by $389 (0.51%) to $76,389, while motorcycle (Category D) premiums rose slightly by $129 (1.50%) to $8,729. Shortly after bidding closed, the Land Transport Authority (LTA) issued a statement noting that COE prices remain elevated, indicating continued strong market demand. The agency urged potential buyers and dealers to continue bidding cautiously.

Stronger demand for large and luxury cars

Mr Soh Ming, Managing Director of Volt Auto, the distributor of Dongfeng electric vehicles, said the sharp rebound in Category B premiums was due to multiple factors: market adjustments following the previous steep price correction, the impact of the upcoming end of tax rebates for hybrid vehicles, and buyers shifting to higher-level models as the price gap between Category A and Category B narrowed. “In the last round, prices fell by nearly $17,000, and in this round they have rebounded by about $15,000. Overall, the actual net drop is not significant, and underlying market demand has always been there,” he said. He analysed that many buyers who had been considering hybrid or larger vehicles accelerated their purchase decisions before the end of the year. At the same time, dealers have stepped up their promotional efforts, driving stronger bidding interest. Although COE quotas have increased, the rise has not been large, so overall supply remains tight and demand for larger vehicles is expected to stay firm.

Category A may stabilise as price gap widens again

Commenting on Category A, which has seen three consecutive rounds of price declines, Mr Soh believes that the narrowing price gap between Category A and B in earlier rounds — at one point to just several thousand dollars — prompted some buyers to “move up one level” to larger models, putting downward pressure on Category A premiums. In the latest round, the price gap has widened again to around $20,000. Mr Soh expects this to draw a fresh group of buyers back to Category A, with the effect likely to show up in the next bidding exercise. Looking ahead, he predicts that if buying interest remains strong through the year-end period, COE premiums for the three main car categories could edge up slightly before the end of December. “The Singapore Motor Show will be held in January, and many people hope to secure a car before the Lunar New Year. As a result, COE prices for the three car categories may continue to trend upwards into next year,” he added.

Dealer strategies and upcoming policy changes

Ms Chua Sufang, Managing Director of Wearnes Automotive, observed that market rumours are suggesting some dealers have been spreading out their COE submissions across multiple bidding rounds instead of submitting all orders at once. This may have contributed to the relative stability of Category A premiums recently. She feels that the modest drop of around $1,000 in Category A this round is unlikely to trigger a significant rebound in demand. However, as the price gap between Category A and B widens again, more buyers may refocus on small and medium-sized cars. Ms Chua expects Category B premiums to remain within the current range in the near term, especially as rebates under the Electric Vehicle Early Adoption Incentive (EEAI) and the Vehicle Emissions Scheme (VES) are set to be adjusted in January next year. Some buyers may rush to complete their registrations before the revised framework comes into effect.

Original article in Chinese published by Zaobao / Shin Min Daily News. Transcribed and adapted for Dongfeng by Volt Auto.