Singapore’s Certificate of Entitlement (COE) premiums have surged to new heights in the latest July 8, 2026, bidding exercise. Category A, which covers smaller, less powerful cars and electric vehicles, reached a record high of $129,000, surpassing the previous peak of $128,105 set in October 2025. Category B premiums for larger, more powerful vehicles also climbed to $130,889, while commercial vehicle premiums hit a record $95,000. This broad increase across all categories has caught many in the motor trade by surprise, especially following a period of relative market quiet in June.
Industry observers point to a longer-than-usual three-week break between bidding rounds as a primary catalyst for the price jump. This extended interval allowed for a larger accumulation of orders, creating a backlog of demand that intensified competition when the bidding window finally opened. Dealers noted that the market, which had shown signs of cooling in mid-June, reacted sharply to the supply constraints and the pent-up pressure from buyers eager to secure their vehicles.
Beyond the bidding cycle, the looming reduction in electric vehicle (EV) incentives is fueling a sense of urgency among consumers. With government subsidies for EVs set to decrease in 2027, many buyers are rushing to purchase vehicles now to lock in current benefits. This behavior mirrors the market activity seen in 2025, where similar policy changes triggered a wave of demand. As the Land Transport Authority continues to manage the quota system, the combination of seasonal demand, policy-driven urgency, and the specific timing of bidding rounds remains a significant driver of these elevated costs.