Small electric vehicles in Singapore are reclassified under Cat A COE cheaper, making all cars under 1.6L more expensive
In March this year, the Land Transport Authority of Singapore (LTA) announced that it would amend the Vehicle Quota System (VQS) that classifies vehicles into five COEs (Certificates of Interest). Under the revised system, effective from the first COE tender in May this year, electric vehicles (EVs) with capacities up to 110 kW (147 hp) will now eligible for COE Class A.
This is an increase from the previous maximum power output threshold of 97 kW (130 hp), under which EVs exceeding this limit are classified under the more expensive Class B COE. From May onwards, only electric vehicles with a capacity of more than 110 kW will be classified as class B.
Examples of electric vehicles sold in Singapore that have moved from Class B to Class A as a result of this adjustment include Electric Kia Niro Short range (100 kW), MG ZS EV (105 kW), Nissan Leaf (110 kW), Electric Hyundai Kona Short range (100 kW) and Hyundai Ioniq EV (100 kW). Based on Business Timesthe number of EVs in category A has increased from 10 to 20.
Meanwhile, electric vehicles that remain in Class B due to their output power exceeding 110 kW include Tesla Model 3, Polestar 2, MG5 electric, Mercedes-Benz EQA and EQC, Volvo XC40 Pure Charger, Porsche Taycan as well as the BMW iX, iX3 and i4, among others.
It should be noted that this change will only be effective for electric vehicles as non-electric cars with internal combustion engines will still comply with the previous requirements for COE Class A. This includes dynamic displacement. engine up to 1,600 cc and maximum power up to 97 kW (130 hp), with The Honda Civic is an example of a Class A COE vehicle. Any car with an engine displacement over 1,600 cc or a peak power exceeding 97 kW (130 hp) will continue to be classified as Class B.
The decision to modify the system is to allow more mass-market EVs under COE Class A in Singapore and boost EV adoption by making them (somewhat) cheaper to own. In 2017, 314 EVs were registered in Singapore, this number increased to 560 units in 2018 when Vehicle Emissions Scheme (VES) was introduced.
The following year, electric vehicle registrations in Singapore doubled to 1,120 units and increased further to 2,942 units in 2021, signaling increased demand for EVs. However, the revised Class A COE for electric vehicles has also seen COE premiums increase compared to the previous one, affecting all buyers looking for a vehicle in said category, regardless of it. fully electric or not.
After the most recent auction ended last Friday (May 6, 2022), the COE premium for Class A stood at SGD 70,901 (RM223,208), 3.2% higher than SGD68, 699 (RM216,313) compared to the second bid in April. Meanwhile, the COE premium for Class B stood at SGD 92,090 (RM289,914), 2.3% higher than SGD 90,002 (RM283,390) in the previous bidding round.
The COE premium increase is despite a larger quota of 11,951 from May 2022 to July 2022 (previously 10,452 February 2022 to April 2022), with The Straits Times reports that the general consensus among car dealers is that demand is driven by the entry of lower-powered EVs into this category.
