Singapore COE Trends: Decoding February 2026 & Predicting the Road Ahead
The first COE bidding exercise of February 2026 delivered a mixed bag of results, with premiums across categories experiencing dips. Category A closed at $106,320, while Category B settled at $110,890. Motorcycles (Cat D) remained relatively affordable at $8,289, but larger vehicles (Cat E) still commanded a hefty $116,000. But what do these numbers *really* mean for Singaporean car buyers, and what can we expect in the coming months? This isn’t just about current prices; it’s about understanding the forces shaping the future of car ownership in Singapore.
The Immediate Impact: A Buyer’s Opportunity?
Industry experts are cautiously optimistic. Nicholas Wong, Chief Executive of Kah Motor Honda, believes this drop presents a prime buying opportunity, especially with Chinese New Year approaching. “The best time to buy a car is now, with the potential for further rebate savings as we head into the CNY shopping period,” he stated. However, Anthony Teo, Managing Director of BYD/DENZA distributor Vantage Automotive, predicts stability or even a slight increase for Category A, while anticipating little further decline in Category B.
Factors Driving COE Price Fluctuations
Several key factors are at play. The supply of COEs remains a constant constraint, dictated by the LTA’s policies. However, demand is far more dynamic. Economic conditions, fuel prices, and even government incentives all contribute to shifts in buyer behavior. The increasing popularity of electric vehicles (EVs) is also creating a unique dynamic, particularly within Category A, which includes EVs with up to 110kW.
Recent data from the Land Transport Authority (LTA) shows a consistent increase in EV registrations over the past year, with a 45% jump in the last quarter of 2025. This trend is expected to continue, potentially putting upward pressure on Category A COEs as more buyers opt for electric options.
The Rise of the EV and its Impact on COE Categories
The categorization of EVs within COEs is a critical point. Currently, EVs are split between Category A and B based on their power output. This creates a competitive landscape, and any changes to these classifications could significantly impact premiums. Some industry analysts suggest a potential re-evaluation of these categories to better reflect the growing EV market.
Did you know? The Vehicle Quota System (VQS) and COE system were introduced in 1990 to manage vehicle growth and maintain a sustainable transport infrastructure in Singapore.
Looking Ahead: Potential Trends for 2026 and Beyond
Several trends are likely to shape COE prices in the coming years:
- Increased EV Adoption: Government incentives, expanding charging infrastructure, and growing environmental awareness will continue to drive EV adoption, impacting Category A demand.
- Economic Uncertainty: Global economic conditions and local employment rates will play a significant role in consumer spending and car-buying decisions.
- LTA Policy Adjustments: Any changes to COE supply, vehicle categories, or incentive schemes will have a direct impact on premiums.
- The Growth of Car Subscription Services: Alternatives to traditional car ownership, like car subscription services, are gaining popularity, potentially reducing overall COE demand.
The Role of Open Category (Cat E)
Category E, open to all vehicles except motorcycles, often serves as a pressure valve for the other categories. When demand is high across the board, Cat E premiums tend to rise, absorbing some of the excess demand. However, it can also be influenced by large fleet purchases or specific vehicle launches.
Internal Combustion Engine (ICE) Vehicle Future
While EVs are gaining traction, the future of ICE vehicles isn’t necessarily bleak. Advancements in fuel efficiency and the development of sustainable fuels could extend the lifespan of ICE vehicles, particularly in segments where EVs are not yet a viable option (e.g., commercial vehicles).
FAQ: COE Bidding in Singapore
- What is a COE? A Certificate of Entitlement (COE) is a right to own and use a vehicle in Singapore for 10 years.
- How often are COE bids held? COE bids are typically held twice a month.
- What are the different COE categories? There are five categories: A, B, C, D, and E.
- Can I predict COE prices? Predicting COE prices is difficult due to numerous influencing factors, but staying informed about market trends can help.
- What happens after 10 years? You can renew your COE, scrap your vehicle, or sell it to a dealer.
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