Singapore car buyers focus on expiring EV incentives over LTA COE overhaul
“Giving a rebate to mass-market cars for COEs and a surcharge to cars with a higher cost will achieve the objective of having a price difference in COEs between mass-market and luxury cars,” said Walter Theseira, associate professor of economics at the Singapore University of Social Sciences.
That policy debate unfolded on Oct 10, 2026, when car showrooms across Singapore experienced steady footfall during the first weekend following a Land Transport Authority consultation paper published on Oct 8. Rather than reacting directly to proposed certificate of entitlement overhauls, buyers focused on the upcoming rollback of electric vehicle adoption incentives scheduled for January 2027, according to The Straits Times.
The Urgency of Expiring Incentives
The EEAI runs until Dec 31, 2026, while the Vehicular Emissions Scheme scales down on Jan 1, 2027, reducing maximum rebates to $20,000.
Raymond Yeo, sales and product manager for Changan Singapore, noted steady footfall at the Alexandra Road showroom.
Diverging Responses Across Vehicle Categories
Market reactions split significantly between mass-market and luxury segments. At a dealership selling high-end automobiles, a saleswoman told The Straits Times that Category B buyers adopted a wait-and-see posture, while Category A shoppers moved proactively to secure current pricing structures before regulatory changes take effect.
Retiree Steven Gao, 65, described six-figure premiums as difficult to justify for family transport after visiting a showroom on Alexandra Road. Certificate premiums reached $130,001 for Category A and $130,100 for Category B during the bidding exercise on Oct 7, according to data cited by The Straits Times and AsiaOne.
AsiaOne reported that Category A prices exceeded Category B on three separate occasions between February and June 2026. This convergence prompted transport authorities to propose merging the two categories into a single framework.
LTA Proposes Structural Options for Merged Category
The Land Transport Authority consultation paper outlines two structural options for the merged category. A three-band system would apply a $15,000 rebate to the lowest open-market-value band, no adjustment to the middle band, and a $15,000 surcharge to the highest band. A five-band alternative introduces smaller adjustments of $7,500.
Automotive consultant Say Kwee Neng warned in comments that merging categories could elevate overall premium levels by intensifying competition. Meanwhile, Associate Professor Wong told AsiaOne that the adjustments should benefit middle-income households focused primarily on baseline vehicle affordability.
The public consultation period remains open until Nov 2, 2026, with the final policy review scheduled for completion by the end of 2026.