Over 90% of Cat A car models to have OMV of less than S$20,000

Under the new Certificate of Entitlement classification system, more than 90 per cent of the models that will remain in Category A will have an Open Market Value of less than S$20,000, based on last year’s car registration data.

The Land Transport Authority (LTA) noted that under the existing engine capacity criterion, only 44 per cent of the Cat A cars have an OMV of less than S$20,000. “However, we can expect that this analysis cannot be the basis to predict the future, as it cannot account for how buyers and dealers will adjust to the new criteria,” it added.

To ensure the specified engine power of cars are not circumvented, the LTA said it will implement “pre-registration safeguards through its vehicle type approval process”.

“Where maximum power output specification of a model is lower than the same model approved previously, or what has been declared in other markets, LTA will not approve such models for registration and use in Singapore,” the LTA said.

“This will serve as a deterrent against anyone who tries to tune down the maximum power output of his car to qualify for Cat A.”

Brands such as Volkswagen, Peugeot and Citroen will have the highest number of car models that will be moved from Cat A to Cat B.

Volkswagen, which will have seven models reclassified under Cat B, said that “demand for some of our popular Cat A models ... will definitely be affected”.

“We will further refine our model line-up in the coming months to offer customers the most attractive choices in both COE categories,” its spokesman said.

Citroen said it will be using the opportunity to promote its range of green cars. ”These cars were built for the budget segment, which coincides with the new COE categorisation strategy as well,” said its spokesman Royston Soh.

Another affected car dealer, Volvo, said it is still studying how to adjust to the market changes. SUMITA SREEDHARAN