After the preferential registration fee ends, Vietnamese people reduce buying domestically assembled cars
Domestically assembled car sales fell by more than half in the first month of 2024 when the preferential policy of reducing 50% of registration fees under Decree 41/2023/ND-CP no longer took effect.
Slowing purchasing power and the expiration of preferential policies from the Government caused sales of domestically assembled cars to drop sharply in the first month of 2024.
Specifically, sales figures released by the Vietnam Automobile Manufacturers Association (VAMA) show that in January 2024, domestically assembled car sales reached 9,783 vehicles, down 59% compared to the end of 2023. This is the month with the lowest domestically assembled car sales in the past year. In fact, domestically assembled car sales were only slightly higher than imported cars by about 300 vehicles.
In January 2024, domestically assembled car sales reached 9,783 vehicles, down 59% compared to the end of 2023.
The decrease in purchasing power has caused the sales of car manufacturers with domestically assembled product portfolios such as Kia, Mazda, Toyota, etc. to decline. In particular, Toyota's sales decreased by 76%, the best-selling model of this brand in January 2024, Toyota Vios, only reached 653 cars. Kia's sales also decreased by 50%, Mazda's decreased by 55%...
The economic situation is still facing many difficulties, causing people to tighten their spending, along with the policy of reducing 50% of registration fees for domestically assembled cars according to Decree 41/2023/ND-CP no longer being effective from January 1, 2024... are said to be factors causing Vietnamese people to reduce their purchases of domestically assembled cars.
The policy of reducing 50% of registration fees for domestically assembled cars will no longer be effective from January 1, 2024... are said to be factors causing Vietnamese people to reduce their purchases of domestically assembled cars.
The head of the sales department of a Ford dealer in Ho Chi Minh City said: "The preferential registration fee policy from the government will no longer be applied from January 2024 in the context of reduced purchasing power, which has somewhat affected the growth momentum of the domestically assembled car segment. Most customers with real needs have signed car purchase contracts since December last year to enjoy incentives. Therefore, even domestically assembled pickup trucks that are popular such as the Ford Ranger are selling more slowly than at the end of 2023."
In fact, after the policy of reducing 50% of registration fees for domestically assembled cars under Decree 41/2023/ND-CP no longer takes effect, many car manufacturers and distributors are still trying to apply discount programs through the form of registration fee support. However, many car models are no longer entitled to double incentives as in the second half of 2023.
Many car manufacturers and distributors are still trying to apply discount programs through the form of registration fee support.
Currently, many domestically assembled car models are still being offered incentives and discounts by dealers to attract customers. However, the loss of preferential registration fees from the policy makes domestically assembled cars face difficulties in the face of competitive pressure from imported cars.
