LTA Defends Using Engine Power Criterion for COE

We disagree with Mr Tan Suan Jin’s assertion that the addition of an engine power criterion in Category A has not improved the demarcation between premium and mass-market cars (“Reconsider engine power criterion for cars”; July 18).

From February, the engine power of Cat A cars should not exceed 97kW (or 130bhp), in addition to the existing criterion that their engine capacity should not exceed 1,600cc.

The additional criterion has resulted in a significant decrease of almost 30 per cent in the median open market value (OMV) of cars registered in Cat A over the past six months.

Correspondingly, there are also now more cars with lower OMV of up to $20,000 registered in Cat A.

To enforce the new criterion, the Land Transport Authority will conduct the maximum power output test on all first-of-its-kind models with maximum power output between 81kW and 97kW. These comprised around 14 per cent of Cat A applications last year.

Only a small proportion of the other applications may be randomly selected to undergo testing.

The processing cost for dealers per new car model is not significant relative to their overall pricing for new cars.

Helen Lim (Ms)
Director, Media Relations Land Transport Authority

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