As the year-end months approach, the demand for cars among Vietnamese consumers continues to rise, with domestically assembled vehicles benefiting from a 50% reduction in registration fees being favored over imported cars.
Increased travel needs and work-related purposes drive more Vietnamese to purchase cars, mainly choosing domestically assembled passenger vehicles with under 9 seats, which are eligible for the 50% registration fee discount. This policy has boosted the consumption of locally produced cars, helping them regain a competitive edge over imported models.
Growing Demand for New Cars Among Vietnamese Consumers
Efforts from manufacturers and distributors, combined with the increasing demand for new cars among Vietnamese consumers toward the end of the year, are driving growth in the automotive market. This trend is reflected in the October 2024 sales results reported by the Vietnam Automobile Manufacturers Association (VAMA).
Specifically, according to the latest sales data from VAMA, in October 2024, total sales of various types of vehicles from VAMA members reached 38,761 units, an increase of 2,176 vehicles (approximately 6%) compared to September 2024. This marks the second consecutive month that the Vietnamese automobile market has grown, maintaining sales above 35,000 units.
“The market’s continued growth momentum in October 2024, with sales reaching nearly 40,000 units, is a result of government support for domestically assembled cars and the efforts of automotive manufacturers and dealers,” shared the head of sales at a Ford dealership in Ho Chi Minh City.
Alongside the 50% reduction in registration fees for domestically assembled vehicles under Decree 109/2024/ND-CP, many assembled and imported car models are also benefiting from special promotions offered by car manufacturers and dealerships. These discounts have significantly reduced car prices, boosting consumer interest.
Including 7,639 vehicles assembled and distributed by TC Motor in October 2024, Vietnamese consumers purchased a total of 46,400 vehicles, an increase of 3,297 units (around 7.1%) compared to September 2024. Among these, passenger cars with under 9 seats remain the majority, reflecting a rising demand for personal, family, and work-related vehicles in Vietnam.
Leveraging Registration Fee Incentives, Domestic Cars Turn the Tables
Similar to September 2024, when Decree 109/2024/ND-CP officially took effect, the “booster” of a 50% reduction in registration fees once again proved effective, helping domestically assembled cars achieve strong sales growth and turn the tables on imported vehicles.
In October 2024, sales of domestically assembled cars reached 21,113 units, an 8% increase, while completely built-up (CBU) imported cars reached only 17,648 units, up by 3% from the previous month.
VAMA data shows that, excluding models assembled and distributed by TC Motor and electric car sales, domestic vehicle sales still demonstrate the effectiveness of the reduced registration fee policy for “domestic” cars.
After the first ten months of 2024, imported car sales reached 129,590 units, up 34.9% compared to the same period last year, yet still lower than the sales of domestically assembled cars, which totaled 134,754 units (a 3% decrease from the previous year). Thus, after months of trailing behind imported cars, domestically assembled cars have successfully turned the tide.
Source: thanhnien.vn
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Source: Vietnam Insider