What affects COE prices? What is fuelling the high bids in 2025? Are our policy measures (e.g. the one-off injection of 20,000 COEs in Oct 2024 and the 'cut-and-fill' to bring forward COE quota from peak years) ineffective given rising COE prices?
The COE system is market-based, where the prices and allocation of COE are determined by supply and demand.
As at Sep 2025, COE prices have risen due to strong demand, despite an increase in supply.
The Government has brought forward COE quota from the future to even out COE supply.
In addition, we are making a one-off injection of up to about 20,000 COEs.
From 2023 to 2025, the COE quarterly quota supply has doubled.
The strong demand is partly due to cheaper electric vehicles imported from China, and a strong exchange rate. Where the top line selling price of the cars remain largely the same, this means car dealers can allocate more money towards COE bids.
Related questions
Do Private Hire Vehicles (PHV) contribute to higher COE prices?
Why not introduce a Pay-As-You-Bid (PAYB) bidding system to help bring down COE prices?
Why not introduce a COE surcharge, like an Additional Buyer's Stamp Duty, for those households with multiple cars?
Will imposing a COE surcharge on foreigners purchasing cars have an impact on COE prices?
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