Executive Summary
In May 2026, Singapore's vehicle deregistration volume reached a total of 7,738 units. The market was dominated by Category A passenger cars, which accounted for over 46% of the month's total activity. This high volume of deregistrations is a critical indicator for future COE supply and reflects the ongoing lifecycle turnover of the local vehicle population.
Deregistrations by Category
| Category | Count | Percentage |
|---|---|---|
| Category A (Cars up to 1600cc & 130bhp) | 3,588 | 46.37% |
| Category B (Cars above 1600cc or 130bhp) | 2,806 | 36.26% |
| Category C (Goods Vehicles & Buses) | 588 | 7.60% |
| Category D (Motorcycles) | 616 | 7.96% |
| Taxis | 79 | 1.02% |
| Vehicles Exempted From VQS | 61 | 0.79% |
| Total | 7,738 | 100.00% |
Detailed Analysis
Passenger Car Dominance
Passenger vehicles (Category A and B) continue to drive the bulk of deregistration activity, together making up 82.63% of all scrapped or exported vehicles this month. Category A alone saw 3,588 units leave the system. This surge is largely attributed to the 10-year Certificate of Entitlement (COE) cycle, as vehicles registered during the high-quota years of 2016 reach their statutory expiry.
Commercial and Two-Wheeler Trends
Category C (Goods Vehicles & Buses) and Category D (Motorcycles) showed stable figures, contributing 588 and 616 units respectively. While Category C deregistrations are often influenced by the Early Turnover Scheme (ETS), the steady numbers in Category D suggest a consistent replacement rate among motorcyclists. Taxis and exempted vehicles remained a minor portion of the total, reflecting the specific fleet management cycles of public transport operators.
Market Implications
Future COE Quota Outlook
The deregistration volume is a primary component in calculating the COE quota for the following quarter. With 7,738 vehicles exiting the road in a single month, there is a strong possibility of a sustained or increased quota in the upcoming cycles. This is particularly relevant for Category A, where the high deregistration count may provide some relief to the supply-side pressures that have kept premiums elevated.
Used Car Supply and Export Market
For prospective buyers, these figures indicate a healthy supply of cars entering the used car market or being prepared for export. A high deregistration rate typically means more car owners are choosing to scrap their vehicles rather than renew their COEs, which can lead to a more vibrant secondary market as owners look for new replacements. Market observers should keep a close eye on whether this trend continues through the mid-year, as it will dictate the pricing trajectory for both new and used vehicles in the second half of 2026.