\n<\/p>\n
Dealers could also face losses on vehicles already in inventory if market prices adjust before those cars are sold, said industry players.<\/p>\n
Mr Eric Chua, honorary secretary of the Singapore Vehicle Traders Association, told CNA that any changes to policies would create adjustment periods for the industry.<\/p>\n
\u201cIt is a process where the dealers would have to go through to clear their current inventory, which will run into risk of losses, and then it will moderate and regulate after a while,\u201d he said.<\/p>\n
Asked how the dealership might respond if demand weakens for particular models, Mr Ang of MV Auto said it could lower asking prices, offer less for trade-ins or carry fewer units in stock.<\/p>\n
\u201cUltimately, the extent of any impact will depend on where COE premiums settle under the proposed system and how consumers respond to the changes,\u201d Mr Chua added.\u00a0<\/p>\n
Based on the 52,678 cars newly registered in 2025, about half would have received a rebate or seen no change under the changes that have been floated, while the other half would have faced a surcharge.\u00a0<\/p>\n
When asked how the rebate and surcharge amounts were determined, LTA said they were based on a judgment of what would constitute a meaningful price difference between mass-market and higher-end vehicles.\u00a0<\/p>\n
It noted that the historical gap between Category A and Category B COE premiums has generally ranged from about S$20,000 to S$30,000, although the difference has narrowed in recent years.\u00a0<\/p>\n
The changes are intended to better differentiate between mass-market and premium vehicles, particularly as more EVs have been engineered to qualify for Category A COEs despite their higher prices, according to LTA.<\/p>\n
The authority added that it would review and publish the band for each car model annually to keep buyers informed before they decide on their purchases.\u00a0<\/p>\n
A public consultation for the proposal opened on Oct 8 and will end on Nov 2. LTA will share its findings and recommendations by the first half of 2027.\u00a0<\/p>\n<\/div>\n
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DEALERS COULD FACE INVENTORY LOSSES Dealers could also face losses on vehicles already in inventory if market prices adjust before those cars are sold, said…<\/p>\n","protected":false},"author":1,"featured_media":93168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--PlFGmdMI--\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2021-08:cna,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/10\/15\/screenshot_2026-10-15_121736.png?itok=Osbciy4T","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[2079,1947,14249,2586,4555,10822,209],"class_list":["post-93167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-car","tag-coe","tag-dealers","tag-market","tag-proposed","tag-reshape","tag-singapores","wpcat-2-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/93167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=93167"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/93167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/93168"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=93167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=93167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=93167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}