The recent surge in Category A COE prices in Singapore can be largely attributed to the expiration of electric vehicle (EV) incentives and the implementation of longer intervals between COE bidding exercises. These factors have collectively intensified demand and contributed to the escalating costs.
The Land Transport Authority's (LTA) decision to extend the intervals between COE bidding exercises, particularly the three-week gap observed in July 2026, has provided dealers with additional time for sales and marketing activities. This extended period has likely increased consumer interest and competition for COEs, thereby driving up prices.
Simultaneously, the expiration of EV incentives has removed financial benefits that previously made EVs more accessible. Despite the removal of these perks, the demand for EVs has remained robust, indicating a strong consumer preference for environmentally friendly vehicles. This sustained demand, coupled with limited COE availability, has further escalated prices.
The Prevailing Quota Premium (PQP), which reflects the average COE prices over the past three months, has also risen, underscoring the upward trend in COE costs. As of July 2026, the PQP for Category A vehicles is $123,315, highlighting the impact of these market dynamics.
In conclusion, the combination of expiring EV incentives and longer bidding intervals has created a perfect storm, leading to record-high Category A COE prices. Prospective buyers should remain vigilant and consider these factors when planning their vehicle purchases.