COE premiums fall across all categories in latest bidding exercise
TODAY file photo
SINGAPORE — Certificate of Entitlement (COE) premiums fell across all categories in the latest bidding exercise on Wednesday (June 21), as prices of COEs for cars continue to slide, and those for commercial vehicles registered their first drop since April.
Premiums for small cars (up to 1,600cc and maximum power output not exceeding 97kW) went down by around 5 per cent to S$42,801, compared with S$45,201 in the last bidding exercise. COE prices for bigger cars (above 1,600cc or 97kW) slipped to S$47,501 from S$50,110.
For commercial vehicles, COE premiums dropped by about 4 per cent to S$36,879 from S$38,501 previously.
In the motorcycles category, prices fell slightly to S$6,001, down from S$6,101. And in the open category, which can be used for any type of vehicle but typically for big cars, premiums went down by around 5 per cent to S$48,001.
The lower prices could be attributed primarily to weaker demand due to a weakening market, motor traders told TODAY. For cars, the decline is again a result of the impending adoption of Euro 6 emission standards for petrol vehicles, they said.
The shift to Euro 6 emission standards, set by the European Union, was announced by the National Environment Agency in December 2014. It is aimed at reducing nitrogen oxides and fine particulate emissions — especially the PM2.5, tiny particles that penetrate deep into the respiratory system — from vehicular emissions.
Mr Jeremy Soh, honorary secretary of the Singapore Vehicle Traders Association, said that Euro 6-compliant cars ordered by distributors and parallel importers have yet to arrive, so “everyone will be holding back”.
Agreeing, Mr Neo Tiam Ting, president of the Automobile Import and Export Association (Singapore), told TODAY that the distributors and parallel importers would be clearing the existing Euro 4 vehicle stock, and the dwindling stock would drive down demand for COE premiums.
For commercial vehicles, which registered a drop after three consecutive increases in COE prices,
Mr Neo said that this was the result of the clearing of demand in the previous three bidding exercises.
In the second bidding exercise for April, premiums for commercial vehicles nosedived by more than 40 per cent. This would have led to a surge in demand.
Mr Soh added that businesses using commercial vehicles may also be tightening their purse strings in this weak economic climate. “They might find it harder to afford a new vehicle,” he said, adding that some businesses may instead choose to renew existing COEs, or buy second-hand vehicles.
In the upcoming bidding exercises, the motor traders said they expect premiums to continue to remain low.
NUMBERS AT A GLANCE:
Cat A (Cars up to 1,600CC & 97KW): S$42,801 (down from S$45,201)
Cat B (Cars above 1,600CC OR 97KW): S$47,501 (down from S$50,110)
Cat C (Goods vehicles and buses): S$36,879 (down from S$38,501)
Cat D (Motorcycles): S$6,001 (down from S$6,101)
Cat E (Open category): S$48,001 (down from S$50,526)
