Motor traders attributed the lower COEs to the oversupply of vehicles such as taxis and private-hire cars, and new Vehicular Emissions Scheme.
This chart from Maybank Kim Eng shows that the average Certificate of Entitlement (COE) premium fell along with private transport costs.
The consumer price index (CPI) for private road transport fell to -0.5% in March 2018 from +0.6% in February 2018. The average COE premium for open category vehicles fell by nearly 30% in March, according to Maybank KE's calculations.
Private transport costs (+0.6% to -0.6% in February) declined for the first time since September 2016 and caused the fall of headline inflation, Maybank KE said.
Analyst Chua Hak Bin commented, "Motor traders attributed the lower COEs to the oversupply of vehicles such as taxis and private-hire cars, and new Vehicular Emissions Scheme (starting 1 January 2018) that disqualify many new cars from rebates."
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