Quick Read
- Motorcycle premiums saw the largest percentage increase, climbing 11.5 percent to reach $9,589.
- Category A car premiums rose to $111,890, marking the highest price level for smaller cars since October last year.
- The Land Transport Authority is currently reviewing vehicle categorisation to address the narrowing price gap between small and large car classes.
SINGAPORE (Azat TV) – Certificate of Entitlement (COE) premiums saw a broad increase across all vehicle categories in the latest tender exercise that concluded on March 18, 2026. The results, confirmed by the Land Transport Authority (LTA), reflect a tightening market for private vehicle ownership, with motorcycle premiums experiencing the most significant volatility.
Motorcycle Premiums Record Sharpest Increase
The motorcycle segment, classified as Category D, recorded the most substantial rise in this bidding round. Premiums climbed 11.5 per cent, moving from $8,602 to $9,589. This sharp spike follows a period of fluctuating demand and underscores the escalating costs for entry-level motorized transport in Singapore.
Convergence of Car Categories Under Scrutiny
Premiums for passenger vehicles also saw upward pressure. Category A, designated for smaller and less powerful cars and electric vehicles (EVs), rose 3.4 per cent to $111,890. Meanwhile, Category B, which covers larger and more powerful vehicles, increased by 1.4 per cent to $115,568. The Open category (Category E), often utilized for larger cars, rose 2.8 per cent to $118,119.
The narrowing price gap between Category A and Category B has drawn significant government attention. Acting Transport Minister Jeffrey Siow recently announced in parliament that the LTA is conducting a formal review of car categorisation. This decision follows instances where Category B premiums fell below those of smaller Category A vehicles—a phenomenon that has not been observed consistently since 2020. The current trend of price convergence, driven in part by manufacturers adjusting vehicle specifications to qualify for Category A, has prompted authorities to seek public and industry feedback on potential structural improvements.
Broader Market Impact
Commercial vehicles, falling under Category C, saw a 2.6 per cent increase, reaching $78,000. In total, the tender saw 4,666 bids competing for a quota of 3,158 certificates, highlighting the sustained demand for vehicle access despite the rising financial barrier to entry.
The ongoing convergence of car COE prices suggests that the current classification system is increasingly disconnected from market realities, and the upcoming LTA review will likely prioritize recalibrating these categories to address the strategic manipulation of vehicle specifications by manufacturers.