Why coe drop

There is a very tiny allowance in allowing for vehicle population growth, but the nature of the system is that demand always outstrips supply. Buyers rush out in the two months ahead of the holiday to secure a new car, to show off to their relatives perhaps, then in the month or two after, car sales take a slight hit as buyer interest wanes temporarily.

COEs will rise again, now that the holiday season is behind us. Lionel Kong. This lastest slip brings premiums for the category back down to The total number of unsuccessful bids for Cat B this round exceeded the quota available by only 27 per cent. This performance is far lower than the month average of 49 per cent.

The number of unsuccessful bids this round exceeded the available quota by 97 per cent, higher than the month trailing average of 78 per cent.

Photo: Gaya Chandramohan. Johannes Tjendro. As an exception, goods vehicles and buses will be allowed to grow 0. Category B cars above 1,cc and 97kW will have a quota of 3,, a drop from 4, The quota for Category D motorcycles also decreased from 2, to 2, Bidding under this quota will start on the first Monday in November.

Mr Neo added that the trend towards hybrids and electric cars is also fuelling big-car COE prices, as most of these cars belong to Category B. Observers reckon the more generous rebates for these cleaner models are fuelling demand, as well as giving sellers more margin to bid for COEs.

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