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Luxury diesel-powered cars may keep Cat A COE price high

A new range of diesel-powered, less powerful luxury cars is gaining traction with buyers amid a re-categorisation of the Certificates of Entitlement (COEs). But experts said the trend may defeat the purpose of the COE changes.

SINGAPORE: A new range of diesel-powered, less powerful luxury cars is gaining traction with buyers amid a re-categorisation of the Certificates of Entitlement (COEs).

This is due to cheaper diesel and maintenance, as well as low-emission rebates.

But experts said the trend may defeat the purpose of the COE changes.

Experts said the new range of diesel-powered cars provides buyers with a less powerful alternative under Category A.

But they said Category A cars were meant for more affordable, mass market options.

Professor Lee Der Horng from National University of Singapore’s Department of Environmental and Civil Engineering said: "If somehow we are not able to achieve this policy goal, then I would say the consumer may still face the same situation that we have already experienced in 2013, which means Cat A COE may still be vibrant and the price may still keep climbing."

New rules that kicked in on Saturday saw small cars with powerful engines moved to Category B of the COE system.

Previously, cars with engine capacities of 1,600cc and below were placed in Category A regardless of engine power.

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