COE quota to slide 13.7% for August to October
Though the total number of COEs will dip, the quotas for motorcyles and Category E vehicles will rise. TODAY file photo
SINGAPORE — After a blip, the Certificate of Entitlement (COE) quota for commercial vehicles will tumble nearly 60 per cent in the August to October bidding exercises, leading to a slide in most categories.
The quota for Category C (goods vehicles and buses) will dwindle to 2,666, based on figures released by the Land Transport Authority (LTA) on Wednesday (July 12). This comes after a bumper crop of certificates from May to July, when supply swelled nearly seven-fold to 6,506.
Across all categories, the supply of COEs will stand at 27,370 between August and October, down 13.7 per cent from 31,708 between May and July. This means an average monthly quota of 9,122
This is the first decline in the total COE supply since the bidding exercises from November to January.
The number of COEs for Category A (small cars up to 1,600cc) will dip to 10,890 from August to October, 4.4 per cent lower than 11,391 between May and July. Those for Category B (big cars above 1,600cc) will fall 2.7 per cent to 7,710 over the same period.
An LTA spokesperson told TODAY that changes in COE supply were due mainly to the number of de-registrations in the preceding quarter. The falls in quotas across Categories A, B and C were because of a drop in de-registrations between April and June.
Category D (motorcycles) and Category E (open) bucked the trend, however. Category D will see its quota go up a shade from 2,721 to 2,862. The number of Open Category certificates will rise by 77 to 3,242.
Dealers who spoke to TODAY said they did not expect COE prices to change significantly because of the falling quotas.
Automobile Importer & Exporter Association (Singapore) president Neo Tiam Ting said that demand from the private hire car sector, which typically bids under Category A, has fallen on the back of a new licensing regime.
As part of new rules announced last year to regulate the private hire car industry, drivers must take a 10-hour course, among other things, to qualify for a Private Hire Car Driver’s Vocational Licence.
Those who lodged their applications for the licence after the June 30 deadline will have to get the licence before they can hit the roads. Mr Neo said this would take a “couple of months”, causing demand to fall.
Singapore Vehicle Traders Association honorary secretary Jeremy Soh noted that the falls in Category A and B quotas were not large. Thus, “huge spikes” in premiums are not expected.
On the supply front, dealers are also trying to clear their existing vehicles before a new emission standard kicks in from September, and most have already done so, said Mr Soh.
From Sept 1, petrol vehicles here must comply with the Euro 6 engine-emission standard.
Authorised distributors are still waiting for some of their Euro 6 models to arrive, added Mr Soh. “Everyone’s trying to manage their stock levels,” he said, noting that this changeover may stabilise or bring down premiums.
Still, Yong Lee Seng Motor managing director Raymond Tang expects demand to remain strong. He said agents and parallel importers are clearing their stock to gear up for the new Vehicular Emissions Scheme, which kicks in from Jan 1.
The two-year scheme, which replaces an existing one, will take into account four more pollutants apart from carbon dioxide. Buyers will qualify for rebates or have surcharges imposed on them, based on certain emissions standards that determine how pollutive their vehicles are.
Consumers would wish to buy their vehicles this year before the tighter rules come into force, said Mr Tang.
