Cat A COE in May 2025 crosses S$103K – Here’s why prices rose again

If you’re planning to buy a car, you’ve probably noticed how much Certificate of Entitlement (COE) prices have changed lately. In the most recent bidding round on May 7, 2025, several categories saw prices climb again. This round was also the first under the May–July 2025 quota period, where the number of available COEs increased by 6.4% from the last quarter. However, this larger quota hasn’t slowed down rising prices – especially for smaller cars and electric vehicles.

Let’s take a closer look at how each category changed and what may be causing it.

COE price changes in May 2025

Here’s a quick summary of the latest COE prices and how they’ve moved since the last round:

COE Category	Description	May 2025 price	April 2025 price	% change
Cat A	Small cars & EVs (≤ 110kW / 1,600cc)	S$103,009	S$99,500	+3.5%
Cat B	Large and more powerful cars & EVs	S$119,890	S$117,003	+2.5%
Cat E	Open category (mostly used for Cat B-type cars)	S$118,889	S$118,001	+0.8%
Cat C	Commercial vehicles	S$62,590	S$65,001	–3.7%
Cat D	Motorcycles	S$8,709	S$9,309	–6.4%

As you can see, prices have gone up for most categories, with the most notable increase seen in Cat A COE May 2025. Let’s break it down by category.

Category A COE – Small cars and lower-powered EVs

The biggest talking point has been the Cat A COE in May 2025, which rose to S$103,009. That’s a 3.5% jump from the S$99,500 in April. This is the highest price Cat A has hit since October 2024, when it reached S$103,799.

So, what caused this increase? A few things happened all at once.

First, many car owners who bought their vehicles in 2015 or 2016 are now reaching the 10-year mark. This means their cars’ COEs are expiring, and they’re looking to replace them. This wave of expiring COEs is expected to grow even more in 2025 and 2026, pushing demand higher.

Next, car dealerships had a strong weekend in sales just before the bidding round. Some showrooms, like those selling BMWs, even reported a 20–30% jump in new sales. That led to more COE applications being submitted.

Also, there’s a clear trend where drivers are downsizing from Category B to Category A. Many are switching from larger petrol cars to more affordable EVs. In fact, Volt Auto said 40% of buyers for its Cat A EV model traded in their Cat B cars.

It helps that there are now more Cat A EV models available. While Chinese car brands have long offered budget-friendly options, even Tesla has launched a Cat A version of the Model Y.

Another reason prices rose was that many dealers were trying to fulfill older orders. Back in February, COE prices fell to $85,000. Many buyers placed orders then, and now dealers are racing to secure certificates before the 3-month deadline expires.

Lastly, the Car Expo held on May 3–4 likely had a big impact. Organised by SPH Media, this popular event drew many buyers, especially for Cat A vehicles. That spike in short-term demand helped push the price higher.

Category B COE – Bigger cars and high-powered EVs

The Cat B COE in May 2025 also went up, but by a smaller margin. It rose to S$119,890, up 2.5% from the previous price of S$117,003. This category is for larger and more powerful cars, as well as EVs that exceed 110 kilowatts.

Although prices have gone up, some experts believe this could level off soon. After the Car Expo rush is over, and with fewer orders coming in, demand might ease. That could mean prices in this category might dip slightly in the next round.

Category E COE – Open category

The Cat E COE in May 2025 increased slightly to S$118,889. That’s just S$888 more than before. This category can be used for any vehicle type, except motorcycles, but it’s usually reserved for larger vehicles like those in Category B.

Because Cat E tends to follow trends in Cat B, prices often move in the same direction. If demand for big cars drops, Cat E premiums could also soften later this year.

Category C COE – Commercial vehicles

There’s good news if you’re shopping for a van or lorry. The Cat C COE in May 2025 dropped to S$62,590, down 3.7% from the previous S$65,001. This decline likely reflects weaker demand in the commercial sector. With business costs rising elsewhere, fewer companies may be buying new fleet vehicles at this time.

Category D COE – Motorcycles

If you’re eyeing a bike, you’ll also notice a price drop. The Cat D COE in May 2025 came in at S$8,709, a 6.4% decrease from S$9,309. Motorcycle demand tends to be more sensitive to price, and this drop suggests there may have been fewer bidders than usual.

Will prices keep climbing?

It’s tough to say for sure, but there are some hints. Although COE quotas are higher this quarter, it hasn’t helped bring prices down yet. Many believe the high number of unsuccessful bids in Cat A may keep prices up for now. On the other hand, Cat B prices might cool down, especially if buyer interest eases.

Also, once all the Expo-related purchases are completed, some dealers think a price dip could happen. But with more COE expiries on the horizon, especially for Cat A, the upward pressure may stick around longer.