Category A COE hits record S$129,000 on July 9, 2026

Singapore’s car ownership costs hit a new peak on July 8 when Category A Certificate of Entitlement (COE) premiums surged to a record S$129,000, up 4.2% from S$123,847 in the prior round. The spike reflects a three-week gap between bidding exercises and buyer urgency ahead of the planned 2027 removal of the EV Early Adoption Initiative, which currently offers a S$10,000 subsidy. All five COE categories rose, with commercial vehicle certificates reaching S$95,000 and Category B (larger cars) climbing 6% to S$130,889.

Why COE prices surged to record highs

The three-week interval between bidding rounds—longer than the usual two-week gap—gave dealers an extra week to collect orders and buyers more time to decide. The Land Transport Authority attributed elevated prices directly to this extended period. Corinne Chua, managing director of Volvo at Wearnes Automotive, noted the longer break meant more demand because sellers had additional time to move inventory, while June holidays had kept the market quiet before the July 8 exercise.

EV incentive expiry driving buyer panic

Automotive consultant Say Kwee Neng compared the current rush to 2025’s “mania” when EV incentives were first reduced. The impending removal of the EV Early Adoption Initiative in 2027 is now pushing consumers to act fast. Buyers fear losing the S$10,000 subsidy difference if they delay. This psychology mirrors the second half of 2025, when similar policy changes sparked a buying frenzy that drove COE prices to previous peaks.

Record highs across all vehicle categories

Category B COEs for larger, more powerful cars jumped 6% to S$130,889, the steepest gain among all categories. Commercial vehicle certificates hit S$95,000, a 2.15% increase and a new record. Motorcycle COEs rose 2.1% to S$10,201, marking the third time in 2026 that this category breached five digits. The Open category (Category E), used mainly for large cars and prized for flexibility, climbed 0.6% to S$129,801. Total bids reached 4,950 across all categories, 10.8% higher than the prior exercise’s 4,462 bids.

What this means for car buyers

A Category A car in Singapore now costs roughly S$179,888 when including the COE, registration fees, and taxes—equivalent to the median annual household salary of S$149,352 and nearly four times the cost of a Toyota Corolla in the United States. The Land Transport Authority urged buyers and dealers to be prudent in bidding, signalling concern over the unsustainable pace of increases. Industry observers cited uncertainty over the COE framework itself as an additional factor fueling demand, beyond the immediate EV incentive cliff.

Final Thoughts

Singapore’s COE market has entered a new affordability crisis. With Category A hitting S$129,000 and all categories climbing, buyers face a choice: pay record premiums now or risk losing EV subsidies in 2027. The next bidding round will signal whether this spike was driven by panic buying or reflects a sustained shift in the market.

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