The Vietnamese auto market is entering the final month of the year, when the 50% reduction in registration fees for domestic cars has ended. Many car manufacturers and dealers are having to offer deep promotions to attract more customers in the days leading up to Tet.
The market "runs out of steam" after the reduction in registration fees According to the sales report of the Vietnam Automobile Manufacturers Association (VAMA), the domestic automobile market in 2024 peaked in November with sales of 44,200 units, an increase of 14% compared to October 2024 (38,761 units) and an increase of 58% compared to November 2023 (27,953 units). If including the 3 months of 50% preferential registration fees for domestically produced and assembled cars according to the Government's policy (September-October-November), the total number of cars sold was 119,546 units, an increase of 48.2% compared to the previous 3 consecutive months. Obviously, preferential registration fees for domestic cars are a strong lever to help car sales grow remarkably in the recent period. 
Statistics on the number of cars sold in the first 11 months of 2024 by VAMA members. Entering December, the auto market seemed to be quieter, mainly because the "boost" in registration fees for domestically produced and assembled cars had ended. Meanwhile, December every year is the "golden" time for sales of many car companies due to the Vietnamese people's year-end car shopping psychology. A survey by VietNamNet reporters at a number of auto dealerships in the Hanoi area showed that many showrooms were much less crowded than the "bustling" scene at the end of November. Mr. Vu Dat - a sales consultant at a Hyundai auto dealership in Hanoi said that in December, the number of customers coming to see cars had decreased by about 30% compared to the previous month. The reason Mr. Dat gave was that those who were interested had researched and "closed" last month because they benefited from the preferential policy, especially for popular popular models such as Accent or Creta. "For many customers, the registration fee of 5-6% of the car's value is very large and greatly affects the decision to buy a car. When the incentives are no longer available, the rolling price of many car models increases by tens of millions of dong, causing many customers, even though they still have a need, to hesitate to close the order at the end of the year," said Mr. Dat. Not only popular car models, luxury car dealers are also in a deserted scene. Ms. Thuy Duong - a sales consultant at a Mercedes-Benz dealer in Hanoi said that this December, there were fewer customers coming to the showroom than in November and the same period in 2023, even though the company and the dealer had many deep discount and promotion programs. "In December, Mercedes-Benz Vietnam offers preferential registration fees and discounts for GLC, S-Class, GLB, etc. models with a total value of up to hundreds of millions, helping customers in need still enjoy the same policies as in previous months. However, at this time, customers "putting down money" is still not as strong as in previous years," Ms. Duong commented. 
Electric vehicles will still receive preferential registration fee exemption until the end of February 2025. Illustration photo: VinFast Statistics on the number of cars sold in the first 11 months of 2024 by VAMA members. Entering December, the auto market seemed to be quieter, mainly because the "boost" in registration fees for domestically produced and assembled cars had ended. Meanwhile, December every year is the "golden" time for sales of many car companies due to the Vietnamese people's year-end car shopping psychology. A survey by VietNamNet reporters at a number of auto dealerships in the Hanoi area showed that many showrooms were much less crowded than the "bustling" scene at the end of November. Mr. Vu Dat - a sales consultant at a Hyundai auto dealership in Hanoi said that in December, the number of customers coming to see cars had decreased by about 30% compared to the previous month. The reason Mr. Dat gave was that those who were interested had researched and "closed" last month because they benefited from the preferential policy, especially for popular popular models such as Accent or Creta. "For many customers, the registration fee of 5-6% of the car's value is very large and greatly affects the decision to buy a car. When the incentives are no longer available, the rolling price of many car models increases by tens of millions of dong, causing many customers, even though they still have a need, to hesitate to close the order at the end of the year," said Mr. Dat. Not only popular car models, luxury car dealers are also in a deserted scene. Ms. Thuy Duong - a sales consultant at a Mercedes-Benz dealer in Hanoi said that this December, there were fewer customers coming to the showroom than in November and the same period in 2023, even though the company and the dealer had many deep discount and promotion programs. "In December, Mercedes-Benz Vietnam offers preferential registration fees and discounts for GLC, S-Class, GLB, etc. models with a total value of up to hundreds of millions, helping customers in need still enjoy the same policies as in previous months. However, at this time, customers "putting down money" is still not as strong as in previous years," Ms. Duong commented. Many showrooms have fewer customers than last month. Photo: Hoang Hiep
Car companies continue to "pump" promotions to stimulate demand during Tet Commenting on the car market in the last month of the year, Mr. Luong Thanh Tuan - in charge of sales at Honda My Dinh said that as of December 25, his dealership had closed about 160 cars and expected to sell more than 200 cars in December. Compared to November, the number of cars sold was slightly less but still equivalent to October. "The demand for buying cars for Tet is still there, plus the company has good policies, so December is still a good time to buy a car. This year, the Lunar New Year of At Ty falls at the end of January 2025, so after a short period of "losing steam", I think the market will heat up again at the end of December and the beginning of January", Mr. Tuan shared.After a period of 'losing steam', the auto market may heat up in late December and early January 2025 thanks to promotions and discounts. Photo: Hoang Hiep
According to records, although the Government's 50% reduction in registration fees for domestic cars has ended, car manufacturers and dealers have "injected" many promotional programs to stimulate customers to shop. In December, Honda Vietnam cooperated with dealers to reduce prices of many best-selling car models by preferential registration fees or cash. Specifically, Honda City reduced 50% of registration fees, helping customers save 25-28 million VND in rolling costs. Meanwhile, CR-V has just been discounted and offered an additional 50% of registration fees, helping this best-selling car model cost only from 900 million VND. Another Japanese car manufacturer, Toyota, has a policy of supporting 50-100% of registration fees for its best-selling car models such as the "couple" Yaris Cross and Corolla Cross reduced from 33-38 million VND or Vios reduced by 23 million VND. MPV models such as Veloz Cross and Avanza Premio have 100% reduction in registration fees, equivalent to 56-66 million VND depending on the vehicle. Manufacturer and distributor THACO has just launched incentives for many KIA branded car models. In particular, the new KIA Sorento is the model receiving incentives of 10-110 million VND. Another popular high-chassis car model, the KIA Seltos, is also discounted from 30-40 million VND depending on the version. Ford, Hyundai, Mitsubishi,... or luxury car brands such as Mercedes-Benz, BMW, Volkswagen also continuously have their own discount programs to stimulate demand in the month before Tet.
Electric vehicles will still receive preferential registration fee exemption until the end of February 2025. Illustration photo: VinFast
The electric vehicle segment is also making remarkable changes in the last days of 2024. In addition to VinFast, the market has also seen the entry of many new car models with diverse origins, attracting young customers who love technology. In addition, electric vehicles in Vietnam have reasonable rolling prices thanks to the benefits of the electric vehicle support policy (100% reduction in registration fees until the end of February 2025). In addition to the selling price, car manufacturers also implement their own programs such as exchanging old for new, supporting the installation of charging stations or free battery charging for a long time, etc. Car market experts say that maintaining a high sales pace in the last month of the year, although not easy, is very important in the context of the Vietnamese car market just accelerating again after many sluggish months. Thanks to flexible promotional strategies, car companies want to gain a certain advantage before "closing the books" in 2024, while creating a strong enough momentum for the new year. Source: https://vietnamnet.vn/thi-truong-o-to-viet-nam-thang-cuoi-nam-khuyen-mai-lon-de-suc-mua-do-hut-hoi-2356202.html
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