[SINGAPORE] A longer-than-usual break between Certificate of Entitlement (COE) bidding rounds helped push mainstream car and commercial vehicle premiums to new heights in July’s first round of bidding which ended on Wednesday (Jul 8).

But industry observers said strong demand was buoyed by forthcoming changes in electric vehicle (EV) incentives, and uncertainty regarding the COE system were important factors as well.

Automotive consultant Say Kwee Neng said: “This is groundhog day. In the second half of 2025, it was mania as everyone rushed to buy because EV incentives were being reduced.

“The impending removal of the EV Early Adoption Initiative in 2027 is coming into very sharp focus now, and consumers are making up their minds – ‘I’m not going to miss this S$10,000 difference, I’m going to jump in.’”

Power of three

In Wednesday’s bidding round, Category A, for mainstream cars, closed at S$129,000, beating the previous high of S$128,105 set in October 2025.

Industry observers attributed this to a three-week break between bidding rounds. COE bidding occurs in the weeks with the first and third Monday of each month. This means there is usually two weeks between bidding rounds, but sometimes there is a three-week break.

A Land Transport Authority (LTA) spokesperson said: “COE prices remain elevated because of the three week period since the last exercise. We urge buyers and dealers to be prudent in bidding for COEs.”

Corinne Chua, managing director of Volvo at Wearnes Automotive, said: “The longer break means more demand because you have an additional week to sell cars. Plus, it was extra quiet during the June holidays before this round as well.”