An end to premium cars in Cat A?
The new COE categorization will kick in from next week onwards. Many see it as a move by the government to end the dominance of premium car marques in the below 1600cc category. We explore this will change the car market for the new year…
Volkswagen isn’t far behind as well. With no fewer than 13 cars that are geared up and ready to take on the new COE ruling. With their star, the award winning Golf, leading the charge with both 105bhp 1.2-litre models and 122bhp 1.4-litre models. Not only that, even their seven seater Touran has made it into the category with the 105bhp 1.2-litre.
While Audi and Volkswagen are quick to introduce their latest Cat A models, the previous giants of the Cat A market, BMW and Mercedes-Benz, are taking a backseat until their new Cat A cars arrive later in the year with 122bhp engines. But all eyes are on Mercedes-Benz to bring in the CLA180 that will meet the Cat A restrictions and will surely overtake the CLA 200 as their best-selling model.
With the premium brands looking to lower capacity petrol engines for their Cat A markets, brands like Volvo and Citroen are banking on their diesel powered models to reclaim their sales figures. Where the low horsepower and high torque that are characteristic of diesel engines make a good fit for the new categorisation.
Volvo will have the V40, V60 wagon and S60 sedan available with horsepower figures that meet the power cap. Even their larger S80 luxury sedan has been included in the new category.
As predicted by industry experts when the new ruling was announced, manufacturers will just introduce ever lower horsepower models to take advantage of the critical mass and as well as the more affordable COE offered in the Cat A market.
But with the Cat A being flooded with a new wave of premium models again, will it find itself back where it started with premium models competing directly with bread and butter cars for the limited COEs? In turn driving COE prices through the roof yet again?
In the mean time, you can look to several tools we have on Oneshift to help in making that all important decision on buying that ride. Our car loan calculator is updated with the latest MAS guidelines and is the only car loan calculator that gives a detailed break down of your loan repayment.
Credits: Story and Photos by Benjamin G. Kline
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