Less than 10% of Category A and B COEs won by car leasing firms in latest exercise after new rules on private-hire cars
COE premiums closed mostly higher in the latest bidding exercise.
A view of traffic in Singapore. (File photo: CNA/Lan Yu)
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SINGAPORE: Less than 10 per cent of Category A and B Certificates of Entitlement (COEs) were won by car leasing firms in the latest bidding exercise on Wednesday (Feb 19).
The latest tender closed just hours after the Land Transport Authority (LTA) announced a three-year lock-in period for all new business-owned private-hire cars.
For Category A cars, or those 1,600cc and below with horsepower not exceeding 130bhp, premiums closed at S$92,850 (US$69,184), up from S$85,000 in the last exercise.
Premiums for larger and more powerful cars in Category B fell to S$109,598Â from S$111,104.
More than nine in 10 Category A COEs and more than 80 per cent of Category B COEs were won by individual car buyers who are Singapore residents, said LTA in a Facebook post on Wednesday night.
Car leasing companies won 6 per cent of Category A COEs, and 8 per cent of Category B COEs, it added.
In November last year, Transport Minister Chee Hong Tat said the proportion of COEs won by car leasing companies has decreased from 26 per cent in 2022 when COE prices were relatively lower, to about 10 per cent in 2024.
COEs for commercial vehicles, which include goods vehicles and buses, increased to S$65,189 in the last exercise, up from S$62,506.
Motorcycle premiums closed at S$8,791, up from S$8,289.
Open category COEs, which can be used for any vehicle type but end up being used mainly for large cars, remained flat at S$110,002 compared to last exercise's S$110,000.
A total of 4,867Â bids were received, with a quota of 2,874Â COEs available.
Earlier on Wednesday, LTA imposed a mandatory three-year lock-in period on all newly registered or converted chauffeured private-hire cars that are owned by businesses, and all such vehicles that are transferred from individuals to businesses.
LTA had originally intended to announce the new requirement after this latest COE bidding exercise. But it brought forward the announcement due to an “unintended release of information” by its vendor NCS, which resulted in some industry players knowing of this new lock-in period before the planned announcement date.
“To ensure transparency and fairness for all stakeholders, LTA has decided to bring forward the implementation of this new policy to Feb 19, before the close of the COE bidding process,” it said.
The new rule ensures that businesses that acquire such private-hire cars do so predominantly for the purpose of leasing them to drivers who provide ride-hail services, LTA added.
It also prevents the premature conversion of such vehicles out of the chauffeured private-hire car scheme, which will affect the supply of vehicles available for point-to-point services.
