Factors Contributing to Increased COE Prices in Recent Bidding Exercise
- The increase in COE prices in the recent bidding exercise was primarily due to higher demand from individual car buyers, who won over 90% of Category A and about 90% of Category B COEs.
- Car-leasing companies had a minimal impact on the price rise, winning only 3% of Category A and 2% of Category B COEs in the recent exercise.
- COE prices can fluctuate due to factors such as increased demand for new cars from events like car shows, and the trend in 2023 showed that price increases were not mainly driven by car-leasing companies.
- The COE quota for Categories A, B, and C is expected to continue rising in 2024 before peaking in the period from 2026.