Singapore

COE premium for commercial vehicles highest in more than 2 years

Certificates of entitlement (COEs) ended mixed in the latest tender yesterday, as bidding eased after almost three months of unabated rises.

The COE for cars up to 1,600cc and 130bhp closed 5.1 per cent lower at $36,534. COE for cars above 1,600cc or 130bhp finished 0.7 per cent lower at $40,690.

Open COE, which can be used for any vehicle type except motorcycles but ends up being used mostly for bigger cars, closed 1.7 per cent lower at $40,301.

In all, the three categories saw 3,178 bids, 14.3 per cent less than the previous tender two weeks ago.

Car dealers said consumers are resisting the higher prices and staying away from showrooms. "Only the German brands are selling, and that is because they are getting a lot of support from the manufacturers," one dealer said.

HOME DELIVERY

While car COEs eased, the commercial vehicle COE shot up by 15.7 per cent to finish at $33,089, the highest in more than two years.

Industry players said the rise in demand for home delivery services as well as the rush to clear stock of older commercial vehicle models before a new emission scheme kicks in next year have been driving up goods vehicle sales.

Mr Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "The construction sector is reopening gradually. Because of (social) distancing, lorries cannot carry as many workers as before. So companies transporting workers have to expand their fleet size."

Meanwhile, the motorcycle premium finished 1.6 per cent higher at $7,451. - THE STRAITS TIMES

Transport