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Engine power to be included in Cat A car COE from Feb 2014

Transport Minister Lui Tuck Yew announced on Monday that engine power will be included into Cat A car COE from Feb 2014. (Photo courtesy of LTA)

Transport Minister Lui Tuck Yew announced Monday morning that engine power will be included as a new criterion in categorising vehicles in Certificate of Entitlement (COE) bidding exercises starting February 2014.
 
Under the change, the engine power of any car in category A (small cars) should not exceed 97 kilowatts (kW) – equivalent to about 130 brake horsepower.
 
This comes on top of the existing small cars criterion that the engine capacity of any cat A car should not exceed 1,600cc.
 
This means that current car models such as the Mercedes Benz C180 (engine power 115kW), BMW 118i (125kW) and the Mini Cooper S (135kW) will be grouped together with cat B cars (above 1,600cc).
 
The new categorisation is expected to better level the playing field for mass market cars like Toyota, Mitsubishi, Suzuki in the cat A segment, which is now being dominated by premium cars.
 
In the first seven months of this year, luxury brands such as BMW and Mercedes-Benz made up 70 per cent of new car sales in the small car category – a sharp increase from less than 50 per cent a year ago, reported The Straits Times.
 
But Minister Lui said the Land Transport Authority (LTA) will not implement a multiple car surcharge on owners due to various “unenforceable loopholes that can be easily exploited.”
 
Instead, it will implement other taxes outside of the COE system to enhance social equity.
 
There was a lack of consensus on a Pay-As-You-Bid system and a ban on dealers bidding on COE, said minister Lui, so these suggestions will also not be implemented.
 
He explained that “a Pay-As-You-Bid COE system may not lead to lower prices as prices are driven by demand”.
 
There will also be no ban on dealers bidding for COE on behalf of buyers as “most prefer the convenience of this service”, added Lui.
 
The minister also said that he was “heartened” that there is general acceptance that the COE system, although not perfect, is fundamentally sound.
 
The changes to the COE system were made after LTA sought feedback from the public, motor industry and academics on the COE framework and multiple car ownership from May to July.

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