Stimulating the car market thanks to the policy of reducing registration fees

(PLVN) - Many domestically assembled cars have benefited from the policy of reducing 50% of registration fees for domestically assembled cars. With only a few days left until this policy expires (November 30), will the car market grow strongly?

11/26/2024 05:54

The automobile market is flourishing during the period of reduced registration fees. (Illustration photo: TCCT)

(PLVN) - Many domestically assembled cars have benefited from the policy of reducing 50% of registration fees for domestically assembled cars. With only a few days left until this policy expires (November 30), will the car market grow strongly?

According to figures released by the Vietnam Automobile Manufacturers Association (VAMA), after receiving a 50% reduction in registration fees, domestically assembled cars have grown significantly compared to previous months, and have also surpassed imported cars. Specifically, domestically assembled cars have skyrocketed in September and October with a growth rate of 62% in September 2024 and an increase of 8% in October 2024.

This helped the total sales of domestically assembled cars after 10 months of 2024 reach 134,754 vehicles, thereby surpassing the sales of imported cars for the first time (reaching 129,590 vehicles). This result shows the positive impact as well as the attractiveness of the 50% reduction in registration fees policy on the car buying decision of Vietnamese customers.

According to VAMA, the five car models that benefited from the registration fee reduction policy in the past two months include Mazda CX-5 with 3,864 cars sold; Toyota Vios with 3,599 cars; Honda City 3,260 cars; Ford Ranger 2,801 cars and Hyundai Accent 2,715 cars.

VAMA representative analyzed that sales figures show that the automobile market, especially domestically assembled automobiles, has continuously grown in the past 2 months. In particular, in September 2024 - the first month the 50% reduction in registration fees policy took effect, sales of VAMA members skyrocketed, from an average of more than 25,000 vehicles in the previous months to more than 36,000 vehicles. Of which, sales of domestically assembled vehicles in September reached 19,500 vehicles, an increase of 62% compared to the previous month, and sales of imported vehicles were 17,085 vehicles, an increase of 30% compared to the previous month.

By October 2024, VAMA members continued to enjoy the growth momentum of the automobile market when sales were maintained to increase with nearly 39,000 vehicles sold, an increase of 6% compared to September 2024. Of which, sales of domestically assembled vehicles in October reached 21,113 vehicles, an increase of 8% compared to the previous month and sales of completely imported vehicles were 17,648 vehicles, an increase of 3% compared to the previous month.

Calculating the total data after 9 months of 2024, sales of domestically assembled vehicles decreased by 7.5% while imported vehicles increased by 28.5% compared to the same period last year. Similarly, by the end of October 2024, sales of domestically assembled vehicles decreased by 3%, while imported vehicles increased by 35% compared to the same period last year. "This proves that the assembled vehicle line has grown compared to the market before the time of reducing registration fees, however, the total number of sales compared to the same period decreased due to certain difficulties from the market" - said a representative of VAMA.

A representative of Hyundai Cau Dien showroom (Hanoi) said that there were certain difficulties in the market for the domestically assembled and produced cars of this company (Hyundai is not a member of VAMA) because "small 4-5 seat cars are not available for sale" during the period when the 50% reduction in registration fees policy took effect. However, the number of sales of the company's 7-seat cars (domestically assembled) increased compared to the previous period, but the increase was not significant.

Meanwhile, a representative of Toyota Thanh Xuan said that the number of cars sold has increased steadily, about 20% during the period of reduced registration fees. And currently, this showroom has no more cars to sell, although many customers still come to inquire or call for advice to "run" the deadline (deadline) of the 50% reduction in registration fees policy. Not to mention, according to this representative, promotional policies are also decreasing slightly because of the scarcity of cars.

However, representatives of many showrooms said that although the number of vehicles sold has increased compared to before the policy, the market still faces many difficulties. Therefore, it is predicted that by the end of the year, the number of vehicles sold will likely not increase because the policy of reducing registration fees has expired and the companies have been running promotions continuously since the beginning of the year and are showing a tendency to reduce promotions.

Box: According to VAMA, up to 1,420 hybrid vehicles (a hybrid between gasoline and electric vehicles) were sold in October 2024. This is the highest number of hybrid vehicles sold in a month ever. Hybrid vehicle sales have increased steadily over the months with increasing sales, proving that this vehicle line is increasingly popular with Vietnamese customers.

Source: https://baophapluat.vn/kich-cau-thi-truong-o-to-nho-chinh-sach-giam-le-phi-truoc-ba-post532962.html