This has led not a few customers to pause their plans to buy a car in order to benefit from the new policy.
Mr. Le Hai, the Director of a private enterprise, shared that he is planning to buy a Honda CR-V G VIN2023 which is priced at 1.109 billion VND because some Honda dealerships in Hanoi are offering quite good prices for this model, while also offering a 30 million VND cash discount, along with some gadgets and accessories upon delivery of the car.
However, upon learning that the registration fee in the near future could be reduced for domestically manufactured and assembled cars, which would help him save an additional sum of money, he decided to temporarily postpone his plan to buy a car at this time, in order to wait for the government’s support policy.
Reducing the registration fee may stimulate consumer demand for the automobile industry in Vietnam.
Sharing the same thoughts as Mr. Le Hai, Ms. Huyen Linh, an office worker, said that her husband also intended to buy her a compact car as a birthday present in May, but they both agreed to postpone the car purchase to wait for the policies to support the reduction of registration fees, in order to save a sum of money.
” In these difficult economic times, saving any amount of money is a good thing to do ,” said Ms. Linh.
Faced with the reality that many customers are postponing plans to buy cars or do not want to receive the cars at this time, a sales consultant at Hyundai Dong Do said that the dealership has also recorded many such cases.
However, this person analyzed that typically, if the registration fee is reduced in accordance with the government’s support policy, car manufacturers and car dealerships will usually cut back on discounts and incentives because at that time, market demand may exceed the supply from the manufacturer.
According to this person, for some hot car models, buyers at the time of the registration fee reduction may even have to pay additional “grease money” or “buy beer with peanuts”.
In particular, at the end of the year, when the support policy for the reduction of registration fees is about to expire, there may even be a situation of overload in the new car registration system. These things have already happened in the previous registration fee reductions.
Therefore, instead of waiting for the registration fee to be reduced, customers should also consider the appropriate time to buy a car in order to optimize car purchase costs most effectively.
Prime Minister Pham Minh Chinh has just signed Directive No. 12/CT-TTg dated April 21, 2024 on key tasks and solutions to promote socio-economic development.
One of the contents requested by the Prime Minister in Directive No. 12 is to assign the Ministry of Finance to urgently research and propose to the Government and the Prime Minister in May the extension of the deadline for tax payment, the reduction of registration fees for domestically manufactured and assembled automobiles, and the reduction of land and water rental fees.
Previously, the Vietnamese automobile market was stimulated by the Government 3 times by a preferential policy of a 50% reduction in registration fees for domestically manufactured and assembled automobiles. The first time was effective for the last 6 months of 2020; the second time was applied for the first 6 months of 2022, and the most recent time was the last half of 2023.
In all three applications, the aforementioned preferential policy created explosive results in terms of sales volume. It was recorded that the number of domestically manufactured and assembled cars – the subject of the incentives – increased by an average of 200% in new vehicle registrations.
In particular, considering the total capacity of the automobile market in 2022, Vietnam achieved a sales volume of up to more than 500,000 vehicles – setting a record sales volume to date.
Meanwhile, the first quarter of 2024 has ended, with the business results of most large and small automobile brands not meeting expectations. The government’s assistance at this time is a source of hope for the market to quickly become vibrant again in the second half of 2024.
