COE December 2023: 1st Bidding Results

‍How is the ongoing market conditions?

A number of automotive dealers reported that their showrooms have been noticeably quieter over the past two weekends. Some speculate that many potential buyers may be travelling during the year-end period, delaying their purchasing decisions until early 2024.

Ms Corinne Chua, Managing Director for Volvo Cars at Wearnes Automotive, shared her outlook:

“COE premiums might remain stable or potentially decrease further in the upcoming second tender in December.”

Industry watchers note that several factors could influence the next bidding, including the upcoming quota announcements for the next quarter, end-of-year promotions by dealers, and macroeconomic considerations such as interest rates and consumer confidence.

What to watch for in the next bidding

• Travel season effect: Fewer local buyers could mean reduced bidding pressure.
• Dealer strategies: Some brands may hold back bids in anticipation of lower prices in the second round.
• Quota adjustments: Any change in supply can swing prices significantly.
• Economic sentiment: Interest rates, inflation, and regional market activity may influence consumer decisions.

The next COE bidding exercise for December will close on 20 Dec, and all eyes will be on whether Category B’s dip continues — and if Category A’s rise was just a temporary bump or the start of another upward trend.