Jobaaj Stories
Singapore COE Bidding Soars in April 2025
Singapore's Certificate of Entitlement (COE) bidding for April 2025 saw a significant surge in premiums for most vehicle categories, pushing the cost of car ownership to new heights. The results, released in early April, reflect a robust demand despite a cautious economic outlook.
Category A: Mainstream Cars Near S$100,000
The most dramatic increase occurred in Category A, encompassing cars with engines up to 1,600cc or 97kW, and EVs with up to 110kW. The premium jumped 3.4 percent to S$97,724, its highest point in 2025 so far, inching closer to the S$100,000 mark. This follows a significant increase from February’s low of S$85,000.
Other Categories: A Mixed Bag
Category B (cars exceeding 1,600cc or 97kW, and EVs above 110kW) also saw a modest rise, increasing 0.9 percent to S$117,899. Motorcycle (Category D) premiums experienced the largest percentage increase, soaring 4 percent to S$9,889. The open category (Category E) inched up to S$117,002. Only Category C (commercial vehicles) bucked the trend, showing a slight decrease to S$68,782.
Expert Opinions and Market Analysis
Industry experts offer mixed perspectives on the price surge. Some, like Adele Lee of Polestar, consider COE demand "recession-proof." Others, including Ng Choon Wee of Komoco Motors, cite economic uncertainty and potential buyer hesitation due to inflation. The upcoming May Car Expo is expected to influence prices further.
Tesla's Strategic Move
Tesla's recent introduction of a lower-power Model Y variant, the Rear-Wheel Drive 110, highlights the impact of COE categories. This variant, falling under Category A, offers cost savings on COE and road tax compared to its higher-powered counterpart, making it a more budget-friendly option for buyers.
Conclusion: An Uncertain Future
The April 2025 COE bidding results paint a complex picture of Singapore's automotive market. While demand remains strong for many categories, economic headwinds and upcoming promotional events could significantly affect future COE premiums. Monitoring the market closely remains crucial for both buyers and sellers.
