Category A COE Prices Reach All Time High In November Bidding
Record Surge In Vehicle Quota Premiums
The first Certificate of Entitlement (COE) bidding exercise for November 2026 has resulted in a historic peak for Category A. The quota premium for vehicles in this category, which includes cars with engines up to 1600cc and 130bhp as well as electric vehicles (EVs) up to 110kW, closed at an all-time high of $139,001. This represents a sharp increase of $6,997 from the previous round. The surge was driven by high demand, with 2,018 bids submitted for only 1,189 available certificates, creating a significant gap between supply and demand.
Other categories also maintained high price points. Category B, covering cars above 1600cc or 130bhp and EVs exceeding 110kW, closed at $132,334, marking an increase of $433. Category E, which encompasses all vehicle types except motorcycles, closed at $135,998, rising by $208. In contrast, some categories saw slight declines; Category C for goods vehicles and buses closed at exactly $92,000, down by $200, while Category D for motorcycles closed at $10,689, a decrease of $89.
Market Drivers And Industry Speculation
Industry experts are divided on whether Category A premiums will continue to climb toward or beyond the $140,000 mark. Several automotive leaders suggest that prices will remain high or increase further due to year-end pressures. Some point to the tendency of dealers to push for higher numbers in December to meet targets set by principals. Additionally, a significant backlog of orders and aggressive bidding by dealers are cited as primary factors contributing to the current price volatility. One commercial director noted that with excess bids of 829 compared to the previous round of 383 for Category A, a move past $140,000 would not be surprising.
A critical driver for the current urgency is the upcoming expiration of the Electric Vehicle Early Adoption Incentive (EEAI) on December 31, 2026. This incentive currently provides a $7,500 rebate off the additional registration fee for new electric cars. The impending end of this rebate, combined with changes to the Vehicular Emissions Scheme (VES), has prompted many buyers and dealers to clear existing stock before the year concludes. The introduction of new models, such as the Xpeng L03 and Zeekr 7X, has further intensified competition within Category A, which was oversubscribed by 70 percent in the latest round.
Despite the bullish outlook from some, other market observers believe the market may have reached a ceiling. Some managing directors suggest that the recent spike was a temporary result of the Car Expo and potential loan restrictions. There is a sentiment among some traders that the current all-time high will create natural resistance, potentially leading to a quieter period of demand in the coming weekends. Some believe the madness of this round was specifically tied to the timing of these events and the regulatory environment.
Looking Ahead To Next Bidding
The volatility of the quota premiums continues to create a challenging environment for both buyers and sellers. While some believe the pressure to deliver vehicles before the end of the year ensures that prices will not drop, others anticipate a stabilization as the initial rush for incentives subsides. The current trend shows Category A has become increasingly competitive, even surpassing Category B in price for the fourth time this year.
The next round of COE bidding is scheduled to begin on November 16, 2026, at 12:00 PM. The results of this subsequent exercise are expected to be released on November 18, 2026, at 4:00 PM. Market participants will be closely watching to see if Category A breaks the $140,000 threshold or if the current peak marks the top of the cycle for the year, as the industry balances the push for year-end targets against the reality of record-high premiums.