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Oct 26, 2026 · Explainer

LTA COE Quota Update: November to January 2026-2027

The Land Transport Authority (LTA) announced on Monday, October 25, that the overall Certificate of Entitlement (COE) quota across all categories for the November 2026 to January 2027 period will rise by 1.1 per cent, amounting to 213 certificates, bringing the total to 19,298 The Business Times. This figure is an increase from 19,085 COEs during the August to October period, according to CNA CNA. Bidding under this new quota is scheduled to begin on November 2 CNA.

What Happened: Category Specific Changes

The supply for luxury cars, Category B (engines over 1,600 cc or over 97 kW, or EVs over 110 kW), will increase by 3.3 per cent or 180 certificates, reaching 5,707 for the November 2026 to January 2027 period, compared to the August to October period The Business Times. In contrast, the mainstream car category, Category A (engines up to 1,600 cc or up to 97 kW, or EVs up to 110 kW), will remain unchanged at 7,134 The Business Times. Category C for commercial vehicles will see a 2 per cent increase, adding 37 certificates to reach 1,873 The Business Times. However, the motorcycle category, D, will shrink by 2 per cent or 61 certificates, resulting in 3,004 certificates The Business Times. The open category, E, will rise by 3.7 per cent or 57 certificates to 1,580 The Business Times.

What It Means for Buyers

This quota adjustment does not reflect the ongoing review of COE categorisation for cars, which LTA proposed earlier this month, suggesting a potential future merger of categories A and B with surcharges based on open market value CNA. The COE supply is determined by the rolling average of de-registrations over the previous 12 months, and the policy instituted in May 2023 involves bringing forward guaranteed de-registrations from vehicles with five-year COEs The Business Times.

Comparison: COE Categories

CategoryVehicle TypeNov-Jan 2026-2027 Quota
AMainstream Cars7,134
BLuxury Cars5,707
CCommercial Vehicles1,873
DMotorcycles3,004
EOpen Category1,580

Which One Fits Whom

Buyers interested in luxury vehicles benefit from the 3.3 per cent increase in Category B, while those seeking motorcycles face a 2 per cent reduction in Category D. The stable quota for Category A suggests consistency for mainstream car purchasers in this period.

Our view is that while the overall quota increase is modest, the targeted rise in luxury car supply, coupled with the ongoing review of categorization, indicates regulatory adjustments aimed at managing market dynamics rather than broad, sweeping changes to vehicle ownership costs.

Understanding local economic and regulatory shifts, like COE changes, informs broader discussions on national policy and stability, aligning with conservative principles of fiscal responsibility.

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Sources: The Business Times · CNA