Cat A needs more COEs to meet current demand but gets fewer instead, while Cat B gets more COEs
LTA (Land Transport Authority) has set the total COE (certificate of entitlement) quota for the three-month, six-bid tender period of 2026 May to July as 19,052.
This figure is 228 pieces, or 1.21 percent, more than the 18,824-COEs allocation for the previous quota tender period of 2026 February to April.
On a granular level, Category A has drawn the short straw, with its new quarterly supply of COEs reduced by 2.03 percent (from 7,585 to 7,434), which comes right after a 1 percent cut in Cat A COE supply for the preceding period (February to April).
The straw could have been even shorter for Cat A if it didn’t receive an additional 1,119 COEs taken from LTA’s forecast of guaranteed vehicle deregistrations, such as cars on five-year COEs which cannot be renewed.
The numbers look better for Category B, whose COE supply is increased by 341 certs from 4,864 to 5,205 - which equates to 7.01 percent more than before.
The Cat B numbers look even better if we count Cat E (aka open Category) COEs as “boosters” for Cat B, since both Categories are used to register “big cars”, i.e. petrol-powered passenger cars with engine capacity above 1,600 cc or engine power above 130 bhp, and fully-electric passenger cars with motor output of more than 110 kW.
The proxy contribution of COEs from Category E to Category B this time is 1,526 certs. The combined pool of Cat B & E certificates is therefore 6,731 - which is 6.858 percent higher than the prior pool.
As for Category C (commercial vehicles), the quota is unchanged at 1,742 COEs, which probably means business as usual for businessmen and fleet managers who need new workhorses-on-wheels. Bikers who want new bikes and the firms which sell them have fewer Cat D COEs to bid for - down by 53 from 3,198 certificates to 3,145.
LTA's three-month, six-bid COE quota calculations for the 2026 May-July period.
Motorist canvassed the Leng Kee dealership belt for industry remarks about the new COE quota for 2026 May-July.
Ron Lim, head of Nissan sales and marketing in Tan Chong Motor, told us: “With lesser Cat A COEs being released, and the overcrowding situation in this segment, Cat A COE premiums could continue to stay higher than Cat B for a while. There’s no quick solution to address the situation, unless the overcrowding situation in Cat A segment can be alleviated. This, unfortunately, means we somehow have to come up with a new parameter to separate and reclassify what are meant to be Cat A cars and what are meant to be Cat B cars.”
Ng Choon Wee, commercial director of Hyundai in Komoco Motors, said: “Has the quota for cut-and-fill been exhausted for Cat A? Seems like the gradual increase for Cat A is not happening. The overall increase of 1 percent is nothing. I expect COE premiums to continue heading north. Overall supply for Cat B and E has increased, does it signal that Cat B will continue to remain lower than Cat A in the next three months? The review of the COE system should be accelerated, especially to eliminate Cat E, which should not be transferable.”
Nicholas Wong, chief executive officer of Honda in Kah Motor, said: “It’s not helping to lower COE prices. Cat A is definitely overheated, Government could do more to mitigate prices to control inflation. With the factor that’s available to control the redistribution, they could just tweak it slightly to increase COE by even 1 to 2 percent. That’s not happening.”
Raymond Ng, managing director of IM Motors and MG in Eurokars EV, added: “25 lesser Cat A quota per bid is relatively insignificant. Cat B plus Cat E quota equals 72 more COEs per bid. These are within expectations, as the COE quota for Cat A has reached its peak, while the Cat B quota continues to rise. We might see Cat A premium overtaking Cat B premium again. When Cat A COE rises above the psychological $120k mark, market demand may face some resistance.”
The sales director of another Alexandra-area dealership said: “The phenomenon of Cat A higher than Cat B may continue, as Cat B COE pressure eases slightly while Cat A, overcrowded with many models, will continue to push its premium upwards.”
Ernest Tan, deputy CEO of Vincar Group which retails Aion, GAC and Proton in Singapore, had the last lament: “I think it’s going to be tough months ahead.”
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