People are excited to buy cars after registration fees were reduced by 50%.

Customers have many choices of domestically produced cars.

From September 1, 2024, Decree 109/2024/ND-CP regulating the registration fee for automobiles, trailers or semi-trailers pulled by automobiles and similar vehicles manufactured and assembled domestically has come into effect. Accordingly, the registration fee for domestically manufactured automobiles will be reduced by 50%.

The above policy has created momentum for the auto market to "sprint" in the second half of this year. According to a survey at a number of car dealerships in Hanoi on September 5, the number of customers has begun to increase gradually and the "order closing" rate has shown positive signs. Right after the National Day holiday on September 2, when information about the policy of reducing 50% of registration fees for domestically produced cars was applied, the family of Mr. Nguyen Duc Minh, residing in Hoang Mai district, Hanoi, started to carry out the plan to buy a car after many months of postponement due to economic difficulties.

Customers are looking for services at a car dealership. Photo: Tran Dinh

Mr. Duc Minh shared that his family of 5 people should choose to buy the new Hyundai Santafe 2.5 Premium. Currently, this car model is being produced in Ninh Binh province. With a price of more than 1 billion VND, Mr. Minh's family will be able to save nearly 70 million VND in registration fees.

“ This is a large sum of money for me. Thanks to that, I have a car to travel to and from work, and have some extra money to rotate business capital when the Lunar New Year is approaching, ” Mr. Minh shared with a reporter from Cong Thuong Newspaper.

Hyundai Santafe buyers will save up to nearly 70 million VND thanks to the registration fee reduction policy. Photo: Tran Dinh

Meanwhile, Ms. Nguyen Thi Hong, residing in Thanh Xuan district, Hanoi, said that the policy of reducing registration fees for domestically manufactured and assembled cars has helped her plan to own a car this year. At the end of this month, after her savings book at the bank matures, she will use it to own a Ford Ranger pickup truck to serve the transportation of goods in her business.

“ Cars are gradually becoming a popular means of transport for people, especially small businesses. Having my own car will help me be more proactive in transporting goods, not being affected by the lack of people to transport goods during the peak season at the end of the year ,” Ms. Hong shared.

Besides people like Ms. Hong and Mr. Minh who buy cars to have more means of transportation, the reduction of registration fees for domestically produced and assembled cars also has great significance for those who consider this vehicle as a "fishing rod".

Ngo Vu Manh, 24 years old, said he had been working as a taxi driver for 2 years, but at the end of last year his family needed a large sum of money so he quickly sold his car to take care of things. Since the beginning of the year, he has not had a car and has had to do many different jobs to make ends meet. Therefore, when there was information about the reduction of registration fees, Manh decided to spend money to buy a Toyota Vios.

" Car drivers are very picky nowadays. I drive contract cars, so they have to be newer models to get a higher price. New cars also reduce a lot of warranty and maintenance costs ," said Manh.

Notably, this September, Toyota Vietnam also launched a program in which customers who buy the Vios sedan will receive two promotional packages at the same time, including 50% support for registration fees and a preferential interest rate of 4.99%/year when paying in installments.

In particular, the maximum 50% registration fee support for customers buying Toyota Vios E MT is 23 million VND, E CVT version is 25 million VND and G CVT version is 27 million VND. This is a domestically produced car line, so when registering, customers will receive an additional 50% reduction in registration fees.

Positive signals return in the "sprint" phase

Although the Government's fourth round of registration fee reduction policy is only valid for 3 months instead of 6 months like the previous ones, this reduction falls right at the peak of the year-end shopping season. Therefore, the effectiveness of the policy is expected to still ensure market demand stimulation. Therefore, many car dealers believe that this policy will help stimulate demand and improve the sales decline of more than 10% in the past 8 months.

Vietnam's auto market is expected to be more vibrant in late 2024. Photo: Tran Dinh

According to staff at the Hyundai Dong Do dealership in Hanoi, the number of customers coming to see cars and make deposits has increased significantly since the beginning of September. In the past few days, the staff here has become busier as they continuously assist customers in registering new cars.

The Ministry of Finance's report said that the application of the policy of reducing 50% of registration fees for domestically produced and assembled cars will reduce the budget revenue by an average of VND867 billion/month. However, the three previous reductions have helped domestic car sales increase by 1.5-2 times. The growth in car sales contributes to boosting Special Consumption Tax revenue for the budget, while supporting production and business and creating more jobs for workers.

In addition, the policy of reducing registration fees for assembled cars will create competition and "heat up" the market. That helps many car manufacturers to plan and calculate so that imported car models also have attractive prices for customers.

According to forecasts from the auto industry, car consumption in Vietnam will improve significantly in the coming time. From now until the end of the year, car sales will have more "push" with many resonant factors, the whole market is expected to grow at a double-digit rate compared to last year.

Source: https://congthuong.vn/nguoi-dan-hung-khoi-chon-mua-o-to-sau-khi-le-phi-truoc-ba-giam-50-343652.html