Why Cat A and B categories could merge under proposed changes to COE system

The vehicle population in Singapore is controlled through a strict quota system known as the certificate of entitlement, or COE, framework that was rolled out in 1990. A COE is valid for 10 years, with options for a five- or 10-year extension.

Any car that is sold must come with a COE, on top of the cost of the car itself. COE prices are determined through public auctions held twice a month.

There are a total of five categories. Passenger cars tend to fall into Categories A and B.

For cars with internal combustion engines, Category A caps the engine capacity at 1,600cc and power output at 130bhp. For electric vehicles (EVs), the Category A cap is a power output of 110kW.

Category B covers larger or more powerful vehicles that exceed these limits.

The distinction between the two categories is meant to differentiate between mass-market and higher-end models.

This chart shows the price of COEs for private cars. Category A COEs are meant for smaller and less powerful cars and EVs.

Meanwhile, Category B is for larger, more powerful cars and EVs. Historically, the price of a Category B COE is higher than that of a Category A COE.

But in recent years, the gap between the prices of these two COE categories has been closing. This means someone who wants to buy a mass-market Toyota is paying almost the same COE price as someone who wants to buy a Mercedes-Benz.

In 2026, the Category A COE price even exceeded that of Category B in three tender exercises. Now, proposals are being made to review the COE system.

Under a zero vehicle population growth framework for private cars, the supply of new COEs is driven by the number of older vehicles that are deregistered.

The COE supply is made public every three months and is based on a rolling average of vehicle deregistrations over the last four quarters.

COE prices are left to market forces, so premiums tend to be lower if the supply is greater.

Historically, premiums are higher when the quota is smaller.

When COEs are in short supply, Category A premiums shoot up. This happened in 2013. Prices fell afterwards when more COEs were available.

Recently, however, prices have continued to rise, especially for Category A, despite the increase in COE supply.

So what’s causing this surge?

A key driver of the COE price surge is the growing popularity of EVs.

The engine or power thresholds for Category A and Category B cars are clearly spelt out, but carmakers have begun to tune cars, including higher-end models, to fit Category A requirements, which normally cover mass-market cars.

Take, for example, the Tesla Model 3.

The Tesla Model 3 Rear-Wheel Drive (RWD) 110 has a power output of 110kW, putting it in Category A with mass-market cars despite having a higher open market value (OMV).

Source: Land Transport Authority. Figures were taken from December 2025.

Through the use of software, the car’s peak output is limited to 110kW to fit the Category A threshold.

Other variations, such as the Tesla Model 3 Premium Long Range RWD, lack these artificial restrictions and fall under Category B.

As more premium EVs are tweaked to qualify for Category A, demand for these certificates has surged, causing premiums to inch closer to – and sometimes above – Category B’s.

What is the new proposal and how will it change the price of COEs?

With Categories A and B so close in price despite being aimed at different types of cars, the Land Transport Authority (LTA) is looking to tweak the system, taking into account views gathered from discussions with about 200 academics and industry players.

A key proposal is to merge Categories A and B into a single pool for all passenger cars.

Merging the two categories will result in a broader pool of COEs for car buyers and most likely reduce price volatility, but it introduces a new challenge.

Those buying mass-market cars will now be competing directly with those shopping for luxury vehicles.

To level the playing field, LTA is proposing a tiered system in which a surcharge or rebate is applied to the final COE price. This ensures that buyers of luxury cars pay more than those opting for everyday vehicles.

Either a three-tier or five-tier banding system could be implemented, and the median open market value (OMV) of a car could determine which band it will be put into.

Here’s how the prices of cars could change with the rebate or surcharge.

Car prices under the 3-tier band and 5-tier band scenarios are calculated on the assumption that the combined COE price is the average of Cat A and B premiums. Values for the Honda Civic 1.5 Turbo and BMW 216 Gran Coupe are based on the latest COE tender exercise on Oct 7, while those for the BYD Atto 3 are based on the Sept 23 exercise.

OMV refers to the basic cost of a vehicle before taxes, and those with higher values will incur a surcharge tacked on to the COE price. Mass-market cars with lower values will get a discount instead.

What will cars cost under the modified COE system? The Straits Times looks at what rebate or surcharge bands several popular car models will fall under, and how much they might cost.

新加坡的车辆数量通过严格的配额制度进行控制，该制度被称为拥车证（COE）框架，于 1990 年推出。拥车证有效期为 10 年，并可以选择延期 5 年或 10 年。

所有售出的车辆除了车价之外，还必须包含拥车证（COE）。拥车证价格通过每月两次的公开拍卖确定。

总共有五大类。乘用车通常属于A类和B类。

对于内燃机汽车，A类排放标准将发动机排量限制在1600cc以内，功率输出限制在130马力以内。对于电动汽车（EV），A类排放标准将功率输出限制在110千瓦以内。

B类车辆是指尺寸更大或动力更强，超出这些限制的车辆。

这两个类别之间的区别是为了区分大众市场型号和高端型号。

此图表显示了私家车拥车证的价格。A类拥车证适用于小型、低功率的汽车和电动汽车。

同时，B类拥车证适用于更大、动力更强的汽车和电动汽车。历史上，B类拥车证的价格高于A类拥车证。

但近年来，这两类拥车证的价格差距正在缩小。这意味着，想购买大众市场丰田汽车的人支付的拥车证价格几乎与想购买奔驰汽车的人支付的价格相同。

2026年，A类拥车证价格在三次招标中甚至超过了B类。目前，已有提议对拥车证制度进行审查。

在私家车保有量零增长的框架下，新的拥车证供应量取决于注销旧车的数量。

拥车证供应量每三个月公布一次，并以过去四个季度的车辆注销量滚动平均值为基础。

拥车证价格由市场力量决定，因此供应量越大，溢价往往越低。

从历史经验来看，配额越小，保费越高。

当拥车证供应短缺时，A类拥车证溢价会飙升。这种情况在2013年就发生过。之后，随着拥车证供应量的增加，价格有所回落。

然而，尽管拥车证供应量增加，但近期价格仍持续上涨，尤其是A类拥车证的价格。

那么，造成这种激增的原因是什么呢？

电动汽车日益普及是导致拥车证价格飙升的一个关键因素。

A类和B类汽车的发动机或功率阈值有明确规定，但汽车制造商已经开始调整汽车，包括高端车型，以符合A类要求，而A类要求通常涵盖大众市场汽车。

以特斯拉 Model 3 为例。

特斯拉 Model 3 后轮驱动 (RWD) 110 的功率输出为 110kW，尽管其公开市场价值 (OMV) 较高，但仍被归类为大众市场汽车的 A 类。

数据来源：陆路交通管理局。数据截至2025年12月。

通过软件控制，汽车的峰值输出功率被限制在 110kW，以符合 A 类车辆的阈值。

其他一些车型，例如特斯拉 Model 3 Premium 长续航后驱版，没有这些人为的限制，属于 B 类。

随着越来越多的高端电动汽车经过调整以符合 A 类标准，对这些证书的需求激增，导致溢价逐渐接近——有时甚至超过——B 类标准。

新方案是什么？它将如何改变拥车证的价格？

尽管 A 类和 B 类车辆针对的是不同类型的汽车，但价格却非常接近，因此陆路交通管理局 (LTA) 正在考虑调整该系统，并考虑从与约 200 名学者和行业参与者的讨论中收集到的意见。

一项关键提议是将 A 类和 B 类车辆合并为一个统一的乘用车池。

将这两个类别合并，将为购车者提供更广泛的拥车证选择，并很可能降低价格波动，但这也带来了一个新的挑战。

购买大众市场汽车的人现在将直接与购买豪华汽车的人竞争。

为了创造公平的竞争环境，陆路交通管理局提议采用分级制度，对拥车证（COE）的最终价格加收附加费或给予折扣。这将确保豪华车买家比选择日常用车的买家支付更多费用。

可以实施三级或五级分级制度，汽车的公开市场价值中位数 (OMV) 可以决定它将被归入哪个级别。

以下是汽车价格在享受折扣或附加费后可能发生的变化。

三级和五级拥车证价格方案下的车辆价格计算均基于以下假设：拥车证总价为A类和B类拥车证溢价的平均值。本田思域1.5T和宝马216 Gran Coupe的价格基于10月7日最新一次的拥车证招标，而比亚迪Atto 3的价格则基于9月23日的招标。

OMV指的是车辆税前的基本成本，价值较高的车辆需要在拥车证价格上加收附加费。价值较低的大众市场车型则会享受折扣。

修改后的拥车证制度下，汽车价格会是多少？《海峡时报》分析了几款热门车型将适用哪些折扣或附加费等级，以及它们可能需要支付多少费用。