Market analysts are forecasting a short to medium-term increase in the Category A (Cat A) price of a successful Certificate of Entitlement (COE) as demand for electric vehicles (EV) in Singapore rises, particularly driven by Chinese manufacturers.
News reporters and industry experts have noted a significant uptick in the adoption of electric vehicles within Singapore, with Chinese brands leading the charge. Data reveals that BYD, a prominent Chinese EV maker, represented over 40% of all new electric vehicle registrations in the first half of this year. The market is expected to become even more competitive with the anticipated entry of other Chinese EV brands such as Xpeng and Zeekr.
Images: Zeekr, Xpeng
The influx of new brands into Singapore’s EV market is likely to intensify competition for Cat A COEs, thereby driving up prices. The rising interest in EVs is not solely due to local consumer preferences but also a strategic pivot by Chinese automakers. Faced with tariffs imposed by the European Union and the United States, these manufacturers are increasingly targeting more welcoming markets like Singapore. Notably, these manufacturers have tuned down their engine capabilities to qualify for Cat A COEs, further driving up demand in this category.
Image: Reuters/Chalinee Thirasupa
Vantage Automotive, the authorized distributor for BYD in Singapore, reported robust sales figures, selling approximately 1,400 electric vehicles last year and surpassing 2,000 units sold so far this year. This surge indicates the growing acceptance and popularity of electric vehicles among Singaporean drivers. As more Chinese electric vehicles populate Singapore’s roads, the demand for COEs is expected to soar, inevitably leading to higher prices.
Meanwhile, many prospective buyers remain undecided and are waiting to see if the current EV infrastructure will improve. There is a growing population of EVs on Singapore roads, but EV chargers have not been able to keep up, resulting in social unrest between EV users at these charging points.
