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Motor Traders Association proposes using car length to distinguish mass-market cars in COE review

Motor Traders Association proposes car length and OMV criteria in Singapore COE review to better distinguish mass-market cars. Read more at straitstimes.com.

The Straits TimesLee Nian Tjoe查看原文 ↗
汽车贸易商协会提议在拥车证审查中使用车身长度来区分大众市场汽车。

A review of the COE categorisation framework is underway to better differentiate mass-market cars from non-mass-market ones.

ST PHOTO: SUHANA ABDUL SAMAT

Published Oct 29, 2026, 09:54 PM

Updated Oct 29, 2026, 09:54 PM

MTA wants car length added to COE rules. It says smaller cars should stay separate from larger, more powerful models.

LTA proposes to merge the two car COE categories into one pool. It will use open market value, or OMV, to set rebates or surcharges.

MTA warns OMV alone could blur the line between mass-market and luxury cars. It prefers OMV with engine size, power output, and fixed thresholds to keep the system clear.

SINGAPORE – The industry body representing authorised car distributors in Singapore has proposed using vehicle length as an additional criterion to determine the amount a car buyer pays for a certificate of entitlement (COE).

The Motor Traders Association (MTA) set out its recommendations in a document in response to the proposed revision to the COE categorisation framework that the Land Transport Authority (LTA) announced on Oct 8.

LTA had sought public feedback on its proposal to merge the existing COE car categories and use a rebate and surcharge system to better differentiate the price of certificates used to register mass-market cars and higher-end models.

Under the authority’s proposed system , a vehicle’s base cost, known as the open market value (OMV), will be used to determine whether a car will incur a surcharge or get a discount off its COE price.

Instead of using OMV to determine a rebate or surcharge, the MTA mooted retaining existing limits on engine capacity and power output and setting exterior length limits for various types of cars, including multi-purpose vehicles, sports cars and coupes.

It said including this measure is in line with the “original intent and definition” of a mass-market car: that it should be smaller in exterior size, have a smaller engine, and lower power output than a non-mass-market one.

The association said it supports LTA’s proposal to merge the two car COE categories to create a single, larger pool for buyers instead of restricting them to bid in either one of the car categories.

LTA’s review of the COE system stems from the price of Category A COEs rising faster than Category B’s recently, narrowing the gap between the two categories.

Between January and October, the price of Category A certificates exceeded Category B’s in four tender exercises, which led the COE for a mass-market family car like the Toyota Corolla Altis costing more than the COE for a luxury car like a BMW 5-series.

The association noted that the arrival of less-powerful EVs have resulted in the Category A COE segment becoming overcrowded. This pushed up demand and hence, premiums.

It said that if the decision is to use OMV, the criterion should be used in conjunction with the existing engine size and power output determinants. This will reduce the number of models that would be considered as “mass-market,” thus alleviating overcrowding, MTA said.

MTA said using only OMV as a differentiator will make it easier for car models to qualify as mass-market, resulting in a potential influx of more models that come into this category.

Another possible outcome is that larger engine cars and more powerful EVs, which are currently Category B COE models, may become considered as mass-market models, it added.

In the event that OMV is used as a criterion, the association also proposed using a fixed OMV threshold instead of the median OMV of models registered.

LTA had proposed grouping cars based on the median OMVs of the models registered in the previous year. From this database, the cars are grouped into bands, determining if the car qualifies for a discount on the COE price or incurs a surcharge.

MTA said basing the ranking on past registrations means that the OMV used does not reflect prevailing market conditions. It added that the methodology in LTA’s proposal is “unnecessarily convoluted and difficult for stakeholders and consumers to understand”.

Under its proposal, cars that fall below a fixed OMV threshold, in addition to fulfilling the engine capacity and power output requirements, will be considered as “mass-market”.

This, the MTA said, will allow LTA to maintain a clear and consistent distinction.

The association also proposed retaining the Open category of COE , which can be used to register any type of vehicle except motorcycles, but subjecting the bidder to the same rebate or surcharge as the single car category.

Similarly, when a car COE is being renewed, the price will factor the applicable rebate or surcharge, depending on its OMV.

An ongoing public consultation exercise to review the COE categorisation framework will close on Nov 2, 11.59pm. People can go to https://go.gov.sg/coe-pcd-feedback to provide feedback.

Lee Nian Tjoe is senior transport correspondent at The Straits Times, where he also oversees the Motoring section.

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