Singapore's Category A vehicle permit premium exceeded Category B's at an Oct. 21 auction, adding to buyers' upfront costs as authorities consider changing how cars are grouped for bidding.
The Category A Certificate of Entitlement (COE) premium reached S$132,004, up S$2,003 from the Oct. 7 auction. Category B rose S$1,801 to S$131,901, leaving its premium S$103 below Category A's. Singapore's Land Transport Authority (LTA) recorded 4,226 bids for 3,231 available permits across all five vehicle categories.
The categories reflect engine capacity and power, including separate power thresholds for fully electric cars. Category B covers cars above Category A's thresholds; a car's physical size alone does not determine its category.
Three premiums rose in the latest auction. The permit for goods vehicles and buses increased S$311 to S$92,200. Motorcycle premiums fell S$234 to S$10,778, while the open category, available for vehicles other than motorcycles, declined S$1,210 to S$135,790.
A COE is required to register a vehicle in Singapore and allows it to be used for 10 years. The premium forms part of a buyer's upfront vehicle cost. LTA uses permit quotas to control vehicle growth because road space is scarce.
LTA cited three occasions between February and June when Category A premiums also exceeded Category B's. The authority says manufacturers can increasingly build cars that qualify under Category A's engine and power limits, making those limits less useful for distinguishing mass-market cars from higher-value models.
Under a preliminary proposal, LTA would combine the two passenger-car categories and introduce fees and rebates tied to vehicle value. The proposed system aims to make buyers of higher-value cars pay more. No change has been adopted.
Public feedback closes Nov. 2. The next COE auction is scheduled to close Nov. 4, and LTA expects to share its review findings and recommendations in the first half of 2027.
