COE Quota 2026: Category A Supply Falls Despite Strong Demand While Category B Sees Increase

Marketing SGCD
May 4
3 min read

The Land Transport Authority (LTA) has announced the latest Certificate of Entitlement (COE) quota for May to July 2026, with a total allocation of 19,052 certificates across all vehicle categories.

This represents an increase of 228 COEs (1.21%) compared to the previous February to April 2026 quota period, which recorded 18,824 certificates. However, a closer look at the breakdown reveals a divergent trend between Category A and Category B COE supply, raising concerns among mass-market car buyers.

Category A COE Supply Reduced Despite High Demand

Despite continued strong demand in the Category A COE segment — typically associated with smaller, more affordable cars — supply has been reduced by 2.03%, falling from 7,585 to 7,434 certificates.

This marks the second consecutive quarterly reduction, following an earlier 1% cut in the February to April 2026 period.

The situation would have been even tighter if not for the injection of 1,119 additional COEs, derived from LTA’s forecast of non-renewable vehicle deregistrations, such as cars under five-year COE schemes.

Nevertheless, the reduced allocation suggests that Category A buyers may continue to face upward pressure on COE premiums, particularly amid sustained demand from COE-friendly electric vehicles (EVs) and compact SUVs.

Category B COE Supply Increases Significantly

In contrast, the Category B COE quota has been increased by 7.01%, rising from 4,864 to 5,205 certificates for the May to July 2026 period.

This expansion is likely to provide some relief for buyers of larger, more powerful vehicles, including premium internal combustion engine (ICE) cars and higher-output electric vehicles.

Category B Gains Further Support from Open Category (Cat E)

When factoring in Category E (Open Category) COEs, which are commonly utilised to register Category B vehicles, the effective supply for this segment becomes even more substantial.

For this quota period:

Category E contributes 1,526 additional COEs
The combined Cat B and Cat E pool reaches 6,731 certificates
This represents a 6.86% increase compared to the previous combined allocation

Given that both Category B and Category E COEs are typically used for higher-performance vehicles — including cars exceeding 1,600cc, 130bhp, or 110kW for EVs — this increase strengthens supply for the premium segment.

Category C and Category D COE Trends

For other vehicle categories:

Category C (Commercial Vehicles)

Quota remains unchanged at 1,742 COEs
Indicates stable demand from businesses, logistics operators, and fleet owners

Category D (Motorcycles)

Reduced by 53 certificates, from 3,198 to 3,145 COEs
Suggests a slightly tighter market for motorcycle buyers and dealers

Market Implications for Car Buyers in Singapore

The latest COE quota adjustment for May to July 2026 highlights a growing imbalance between Category A demand and supply, which may have several implications:

Sustained or rising Cat A COE premiums, especially with strong EV demand
Increased competition among buyers for mass-market vehicles
Potential stabilisation or moderation in Category B COE prices due to higher supply
Continued importance of Category E as a “buffer” for premium car registrations

For prospective buyers, particularly those exploring affordable cars or EVs, timing and bidding strategy will remain critical factors in navigating Singapore’s car ownership landscape.

A Shifting COE Landscape in 2026

While the overall COE supply has increased slightly, the reduction in Category A quotas alongside an increase in Category B supply reflects a shifting market dynamic.

As Singapore continues to balance vehicle population control with evolving demand — especially from EV adoption — COE trends are expected to remain a key determinant of car affordability and ownership costs.