Auto market heats up amid Tết promotions

Many dealers are maintaining promotional programmes that include reductions of 50 to 100 per cent on registration fees to attract buyers during the peak shopping season.

The domestic auto market has experienced a significant boost, thanks to government initiatives and year-end promotions coinciding with the Tết holiday.

Although the 50 per cent registration fee reduction policy expired in December, automakers are still offering substantial discounts and incentives. Many dealers are maintaining promotional programmes that include reductions of 50 to 100 per cent on registration fees to attract buyers during the peak shopping season.

Hoàng Minh, a buyer from District 7, shared his experience buying a Toyota Vios. Minh saved more than VNĐ30 million (US$1,200) thanks to the registration fee reduction, making the total cost of the vehicle just over VNĐ520 million ($20,800). This was a significant saving compared to the previous price of around VNĐ620 million ($24,800).

Similarly, Quang Hà from Bình Thạnh District took advantage of discounts to purchase a Hyundai Santa Fe Premium. The family had been considering a new vehicle since the beginning of the year but waited for the maximum discount of up to VNĐ78 million to finalise their purchase.

Car dealerships have reported a surge in customer interest, particularly in popular models like the Toyota Vios and Hyundai Accent. One dealer noted a 40 per cent increase in bookings from September to November as customers rushed to take advantage of the expiring fee reductions.

Ongoing dealer incentives

Toyota is continuing to offer incentives in December, including fee reductions and financing options at competitive interest rates. Hyundai Vietnam also reported a rise in sales, selling 8,000 cars in November alone, and aims to maintain strong sales figures despite the end of the registration fee reductions.

Industry leaders recognise the importance of stimulating demand in light of changing economic conditions. Phạm Ngọc Thân, general director of Saigon Ford, highlighted the need for companies to adopt new promotional strategies to maintain consumer interest as the market will adjust in the post-incentive period.

Experts like Nguyễn Thị Hiền suggest that auto companies will need to implement new stimulus measures, such as financial support and deep discounts, to attract buyers in early 2025.

According to Dr Lê Bá Chí Nhân, the Vietnamese auto market is projected to grow by 14-16 per cent annually until 2030. The strategy focuses on increasing the production and consumption of electric and hybrid vehicles, but achieving these goals will require addressing high vehicle costs, primarily driven by taxes and fees.

Dr Nhân advocates for adjustments to the special consumption tax to enhance purchasing power and stimulate auto consumption, ensuring a sustainable growth trajectory for the industry in the coming years.

IN BOX

The Vietnam Automobile Manufacturers Association (VAMA) announced on December 10 that its member companies sold 44,200 vehicles in November, marking a month-on-month increase of 14 per cent. This monthly figure is the highest sales level since the beginning of the year, showcasing strong consumer demand as the year-end approaches.

In the first 11 months of 2024, total auto sales exceeded 400,000 vehicles. The significant increase in sales is largely attributed to a government policy that offered a 50 per cent reduction in registration fees for domestically manufactured and assembled vehicles from September to November.

Experts suggest that the balanced growth across all vehicle segments reflects a revival in the automotive market. The rising demand, especially during the year-end season, points to a positive trajectory as the industry moves into 2025.