Asia

Slight dip in car COE supply in next three months

SINGAPORE – The supply of car certificates of entitlement (COE) will dip by 6.7 per cent in the next three-month quota period starting August.

In its regular quota announcement on Wednesday (July 14), the Land Transport Authority said the monthly average will be 1,605 COEs for cars up to 1,600cc and 130bhp, and 1,541 COEs for cars above 1,600cc or 130bhp.

The monthly supply of Open COEs, which can be used for any vehicle type except motorcycles but which end up mostly for bigger cars, will be 394.

The total of the three works out to be 3,540 per month, or 6.7 per cent fewer than the 3,752 available under the current quota.

Commercial vehicle buyers and sellers will have a bigger contraction of 26.8 per cent, with the monthly average falling from 314 to 230 COEs.

Motorcycle COE supply will likewise drop by 27.6 per cent to 889 pieces, from 1,228 currently.

Motor dealers said the shrinkage is not unexpected, but reckon the contraction in car COEs was mitigated by the surge in revalidation of COEs made from 2016.

This is because those who revalidated after 2016 may also have decided to scrap their cars early.

The COE supply is determined mainly by the number of vehicles deregistered in the preceding three months, and cars with five-year COE revalidations cannot be further extended and must be deregistered.

Some observers however, wonder how the latest shrinkage could have happened, given that car deregistrations in April and May were noticeably higher than in the preceding two months. The LTA has not published deregistration figures for June, but these would have to be drastically lower to result in a smaller supply for the next three months.

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