Diesel-powered luxury cars may keep Cat A COE price high

SINGAPORE — A new range of diesel-powered, less powerful luxury cars is gaining traction with buyers amid a re-categorisation of the Certificates of Entitlement (COEs).

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The new range of cars run on cheaper diesel and maintenance, and are also entitled to low-emission rebates.

But experts warn that the trend may defeat the purpose of the COE changes as the new cars provide buyers with a less powerful alternative under Category A, which is meant for more affordable, mass market options.

“If somehow we are not able to achieve this policy goal, then I would say the consumer may still face the same situation that we have already experienced in 2013, which means Cat A COE may still be vibrant and the price may still keep climbing,” said Professor Lee Der Horng of the National University of Singapore’s Department of Environmental and Civil Engineering.

New rules that kicked in on Saturday saw small cars with powerful engines moved to Category B of the COE system.

Previously, cars with engine capacities of 1,600cc and below were placed in Category A regardless of engine power. CHANNEL NEWSASIA

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