Singapore Car Market Report 2025: Annual Review & 2026 Outlook

Executive Summary

Singapore's car market in 2025 was defined by three trends: continued moderation from the 2023 COE peaks, accelerating EV adoption driven by government incentives, and a shift toward smaller, more efficient vehicles. This report provides a comprehensive analysis of the year's key developments and our outlook for 2026.

COE Price Trends: 2025 in Review

Category A (Cars ≤1,600cc / ≤$20,000 OMV)

Category A premiums averaged approximately S$87,000 in 2025, down from the S$96,000 average in 2024 and significantly below the S$106,000 peak in late 2023. The moderation was driven by increased deregistrations from 2015-era vehicles and somewhat softer demand as buyers adjusted expectations.

Category B (Cars >1,600cc / >$20,000 OMV)

Category B averaged around S$98,000, showing more resilience than Category A. The premium segment has more price-insensitive buyers, and the luxury/continental car market remained strong throughout the year.

Category C (Goods Vehicles & Buses)

Commercial vehicle COEs remained elevated at an average of S$72,000, reflecting strong logistics demand and fleet replacement cycles.

Category D (Motorcycles)

Motorcycle COEs averaged S$10,500, roughly flat year-on-year. The motorcycle market is smaller and more stable than the car market.

Category E (Open)

The Open Category averaged S$101,000, typically tracking between Category A and B as it can be used for any vehicle type.

Registration and Deregistration Data

Total new vehicle registrations in 2025 reached approximately 95,000 units, consistent with the 0% growth rate policy. Deregistrations totalled roughly 96,000 — slightly higher, creating a marginally positive supply dynamic for 2026 quotas.

The top registered brands in 2025 were Toyota, Mercedes-Benz, BMW, Hyundai, and Tesla — reflecting Singapore's bifurcation between practical and luxury segments.

EV Adoption Acceleration

2025 was a watershed year for electric vehicles in Singapore:

• EV registrations reached an estimated 15% of all new car registrations, up from 10% in 2024
• Tesla remained the top EV brand, but BYD gained significant market share
• The government extended EV early adoption incentives (EAIP) through 2027
• Public charging infrastructure expanded to over 12,000 charging points across the island

The VES (Vehicle Emissions Scheme) continues to favour electric and plug-in hybrid vehicles, providing rebates of up to S$25,000 for the cleanest vehicles while penalising high-emission ones.

Key Policy Developments

• 0% Growth Rate Extended: Confirmed through at least 2028
• ARF Adjustments: Minor tweaks to ARF bands in Budget 2025
• EV Charging Mandate: New developments must include EV charging provisions
• VES Updates: Band thresholds adjusted to reflect improving fleet emissions

2026 Outlook

We expect the following trends in 2026:

• COE prices: Likely to remain in the S$80,000-$100,000 range for cars. Supply from 2016-era deregistrations should provide some relief, but demand remains robust
• EV share: Expected to reach 20-25% of new registrations
• Used car market: Growing importance as new car costs remain high
• Buyer behaviour: Continued shift toward EVs and smaller cars for cost efficiency

For real-time tracking of these trends, visit our Trends dashboard or set up price alerts for your target categories.