New regulations cause many types of cars to increase in price?

Prices of trucks and passenger cars with 16 seats or more may increase by 15-20% in the near future due to the delay in implementing Euro 4 emission standards to protect the environment.

Determination for the environment

According to Decision No. 49/2011/QD-TTg on the roadmap for applying emission standards to assembled and imported automobiles and motorbikes, from January 1, 2017, new automobiles and motorbikes must meet emission standards at level 4 (Euro 4) and by January 1, 2020 must meet emission standards at level 5 (Euro 5).

Previously, a series of associations and businesses had proposed to delay the decision's application to passenger vehicles with 16 seats or more and trucks due to lack of preparation.

The roadmap to implement Euro 4 standards is mandatory for all newly manufactured, assembled and imported cars and motorbikes from January 1, 2017.

Recently, the Ministry of Transport has sent a document to the Prime Minister requesting to postpone the application of Euro 4 standards for passenger cars, pickup trucks, and diesel trucks (VAN) manufactured and assembled domestically for another year, until January 1, 2018. For other types of cargo vehicles (except pickup trucks and VAN trucks) running diesel, the delay will be until January 1, 2022, which is an additional 5 years.

The remaining light-duty vehicles (passenger vehicles with 9 seats or less) using domestically manufactured and assembled gasoline engines (but all with foreign brands) will still maintain the same roadmap for applying level 4 emission standards from January 1, 2017.

However, speaking at the regular Government meeting in February 2017, the Prime Minister did not agree with the above proposal and requested strict implementation, resolutely not ignoring environmental protection issues for the benefit of some sectors and fields.

Therefore, the roadmap to implement Euro 4 standards is mandatory for all newly manufactured, assembled and imported cars and motorbikes from January 1, 2017.

The Euro 2 standard that Vietnam is applying has a maximum sulfur content in gasoline of 500 mg/kg. However, with the Euro 4 standard, the maximum is only 50 mg/kg.

According to experts, the sulfur content in gasoline is of great concern. When burned, sulfur produces SO2 (sulfur dioxide), which damages the mucous membranes in the respiratory tract and eyes. Up to 95% of SO2 from car and motorbike engines is released into the environment. Therefore, the lower the sulfur content in gasoline, the better.

The implementation of Euro 4 emission standards is aimed at reducing environmental pollution, affecting people's health. This is something that cannot be exchanged for any economic benefits. Many countries in the world have applied this standard and Vietnam cannot be slower in applying this environmental protection standard.

Will car prices increase?

According to the report of the Vietnam Register, Euro 4 emission standards have been applied since January 1, 2017, but so far, only a few enterprises have conducted testing, while the majority have not yet registered for certification testing.

Gasoline produced in Vietnam does not meet Euro 4 standards.

Enterprises that manufacture, assemble and import trucks and passenger cars said they still think that the roadmap for applying Euro 4 emission standards will be adjusted and delayed by 5 years as proposed by the authorities, so they have not yet made the switch.

Most trucks and passenger cars imported or assembled domestically still use engines that meet Euro 2 and 3 standards. From January 1, 2017, the Vietnam Register has stopped issuing registration certificates for newly manufactured, assembled and imported cars that meet Euro 2 emission standards.

Currently, hundreds of vehicles are stuck and businesses are waiting, especially after the Ministry of Transport sent a dispatch to the Government requesting a delay in implementation.

If Euro 4 standards are to be followed, these vehicles will certainly have to have their engines replaced. In addition, imported and domestically assembled vehicles must also be converted to Euro 4 engines from now on.

According to calculations, when changing the engine from Euro 2 to Euro 4, the price of the car will increase significantly. Therefore, the car market in the coming time will increase prices, with the segment of trucks and passenger cars with 16 seats or more. However, the increase depends on many factors: production costs, taxes, distribution and competition in the market.

Businesses said there is another concern about the quality of gasoline and oil that is not guaranteed. Gasoline and oil produced in Vietnam do not meet Euro 4 standards, so to meet them, they must import and sell it together with gasoline and oil that meet Euro 2 and 3 standards. With so many types of gasoline and oil, there is a high risk of fraud in the business of this product.

The biggest concern is that Euro 4 engine vehicles use substandard gasoline, mixed with uncontrolled quality, which will affect the engine.

The Vietnam Automobile Manufacturers Association (VAMA) said that the market currently has only 3-4 types of gasoline and quality control is difficult, if more types are added, it is unclear how to control. Gasoline that does not guarantee quality will quickly damage machinery and engines, potentially posing a risk of vehicle fire or explosion.

When cars use engines that meet Euro 4 emission standards as prescribed, but use substandard gasoline, the number of cars having problems will certainly increase significantly. Emissions from substandard gasoline still destroy the environment. Therefore, if new motorbikes and cars are required to use Euro 4 engines, the quality of gasoline according to Euro 4 standards must also be strictly controlled and widely sold, and easily purchased.

According to VNN