2026 COE Category Review: Confirmed Rules and Open Questions
Separate the ongoing category review from approved changes, and identify the details buyers would need before adapting a purchase plan.
A review of COE categories is not an implemented change. In its 6 May 2026 reply, MOT said the car-category review was ongoing and expected to conclude by year-end. That statement did not announce a new category, price range or transition date.
The current buying rules still matter
Category A covers qualifying non-fully electric cars with both engine capacity up to 1,600cc and maximum power up to 97kW, and fully electric cars up to 110kW. Cars exceeding the relevant boundary belong in B. Category E can be used for eligible vehicles other than motorcycles.
There is no rule that converts EV kilowatts into an equivalent engine capacity to determine the category. Use the approved vehicle particulars.
What an announced reform would need to specify
- The exact vehicle-eligibility boundary and effective exercise.
- How quota is allocated or transferred between categories.
- Treatment of existing orders and unused Temporary COEs.
- Whether renewal arrangements change for existing vehicles.
- Any transition rules and the official source confirming them.
These are questions to resolve when an announcement is made, not a list of government-approved proposals. A fixed transition period or a mid-2027 start should not be invented.
Why a new label cannot guarantee a cheaper premium
Moving vehicles into a category also changes the demand facing it. The quota allocated to that category matters as much as its name. A hypothetical EV-only category with no stated quota and bidder distribution cannot support a reliable $60,000–$90,000 price estimate.
What buyers can do now
Compare an affordable complete offer under the rules currently in force. If delivery extends across a possible policy change, ask the seller to specify how changed registration costs or eligibility would be handled. Keep the answer in the agreement.
Waiting can be a reasonable personal choice, but price the transport and ownership costs of the wait. Do not treat an unresolved review as a promised discount or assume that an existing petrol car will be barred from renewal because of a new-registration target.
Sources and review date
Reviewed on 13 September 2026. Historical results retain their exercise dates; worked budgets are assumptions, not quotations.