Vehicle buyers will be in for a sizeably smaller supply of Certificates of Entitlement (COEs) for the August-October quota period.
Vehicle buyers will be in for a sizeably smaller supply of Certificates of Entitlement (COEs) for the August-October quota period, in line with a record number of motorists who have extended the lifespan of their old cars this year.
Cat A COE supply suffers a substantial hit of 25.8% shrinkage The quota, which is determined largely by the number of cars taken off the road in the preceding three months, will shrink by 16.5% to 4,904 a month for cars. This includes Open category, which can be used for any vehicle except motorcycles but ends up almost exclusively for cars.
The quota for Category A (cars up to 1,600cc and 130bhp) will contract by 25.8% to 2,112 a month. Category B (cars above 1,600cc or 130bhp) will be reduced by 8.6% to 2,083 a month. The Open category shrinks by 5.3% to 709 a month.
The quota for commercial vehicle COEs will contract mostly severely, by 27.3% to 566 pieces a month. Motorcycle buyers will have 1,477 COEs a month, or 17.7% fewer.
Industry observers said weakening consumer sentiment on the back of slower economic growth should mitigate the upward pressure on prices that a small quota typically causes.
Also, with a record number of car buyers keeping their cars beyond 10 years, replacement demand will be lower.