Electric car market in Nghe An competes strongly with 'used' cars

Demand for electric cars increases

After the Lunar New Year holiday, the electric car market in Nghe An became more active. At electric car dealerships in Nghe An, the number of people coming to see the cars and making deposits increased significantly compared to the same period last year.

A sales staff at an electric vehicle dealership in Vinh City said: Since the 6th day of Tet, many customers have visited the dealership. In the past week, I have signed 3 car purchase contracts. This is a clear difference compared to the same period last year.

According to some dealership employees, the main reason is that many customers are racing against time to complete the car purchase procedure before the 0% registration fee ends at the end of February 2025.

According to Decree 10/2022 of the Government, battery-powered electric cars are exempt from registration fees for 3 years from March 1, 2022. After this period, from March 1, 2025 to March 1, 2027, electric cars will be subject to registration fees equal to 50% of those of gasoline and diesel cars in the same segment. This means that from March 2025, customers will have to pay an additional 5-6% of the listed price of the car to complete the registration procedure, depending on the locality.

With the 0% registration fee incentive period only remaining in less than 10 days, customers are taking advantage of the opportunity to save from tens to hundreds of millions of VND when buying electric vehicles.

Not only serving personal needs, many customers also buy electric cars to operate transportation services such as taxis and technology cars. The main reason is that the operating cost of electric cars is significantly lower than that of gasoline and diesel cars, helping to optimize profits. The reason customers are interested in electric cars is that Nghe An is currently building many new charging stations. Even in the remote districts of Que Phong, Tuong Duong ... electric car charging stations are being built.

Mr. Tran Van Tam in Vinh city shared: “The electric vehicle market is still quite new, there are still some minor errors that need to be fixed by the manufacturer, but I still buy it because the product is affordable, the car is compact and convenient to drive in urban areas, is 100% exempt from registration tax, and is also free to charge from now until July 2027.

The used car market is quiet

In contrast to the excitement of the electric vehicle market, in the first days of 2025, the "used" car market in Nghe An was quite quiet. The owner of a car showroom in Vinh city said: "Used" cars in the A to C segment with affordable prices from 200-400 million VND such as Hyundai Grand i10, Kia Morning, VinFast Fadil, Toyota Vios... in previous years received great attention from customers. Each day the showroom sold 2-3 cars, but since after Tet, the demand for "used" cars has decreased significantly, sometimes only 1-2 cars were sold a week.

The owner of another car showroom in Vinh city shared: At this time, cheap car models under 500 million VND are slow to trade, while used car models over 500 million VND are facing difficulties in trading because customers tend to switch to new models with similar prices. Showroom owners admit that recently other car manufacturers and electric cars have launched many products with suitable prices, which has somewhat affected the consumption of "used" car models.

Mr. Tran Van Minh in Quang Trung Ward, Vinh City said: A 2016 CX5 "used" car, used for 9 years, is sold at the showroom for 520 million VND, with that amount of money I can buy a new gasoline car, or electric car without worrying about repairs or maintenance. However, there are still customers who like "used" cars that have been on the road for about 1-2 years, the quality of the car is quite good and saves a certain amount of money, not to mention that driving a gasoline car is still proactive and does not worry about fuel when traveling long distances.

The used car market is slow, many used car showrooms are currently afraid to buy cars that have been fined because the procedures and fines are quite complicated.

In addition to the "used" car market, at the showroom selling new cars in Vinh city, in the first days of the year, very few customers came to see the cars and make deposits. Reporters also surveyed in the districts of Quynh Luu, Dien Chau, Nghia Dan, Do Luong, some showroom owners here shared: Currently, the "used" car market is more difficult than previous years, we have switched to buying used electric cars to sell to customers.

Find out on e-commerce platforms such as Cho Tot Xe, Bonbanh, Oto.com.vn, Carmudi, fgf.v or major e-commerce platforms whether the price of "used" cars is lower than before to attract customers.

The used car market will face more difficulties because recently, the prices of new cars of many brands have dropped sharply, there are many policies to "stimulate" buyers. Currently, Nghe An has many showrooms converting and purchasing old electric cars to meet customer needs.