PM cuts registration fee for locally-manufactured car buyers

13:07 | 24/05/2020 Society

Prime Minister Nguyen Xuan Phuc will cut 50 percent of registration fees for locally-manufactured and -assembled cars from now to the end of this year.

Customers will benefit from a cut to registration fees after buying locally-manufactured and assembled cars from now to the end of this year - Photo: VNA

The cut will help customers save from tens of millions to hundreds of millions of dong, depending on the type of vehicle.

The decision was announced at a meeting held this week on the Government’s draft resolution on tasks and solutions to continue solving difficulties for production and business, promoting disbursement of public investment capital and ensuring social safety in the context of the COVID-19 pandemic.

The registration fee reduction is one of the solutions proposed by the Ministry of Industry and Trade in order to help local businesses recover production and trade as well as stimulating the consumption of locally-manufactured and -assembled cars.

Cars currently have a registration fee of 12 percent of the value in Hanoi, and 10 percent in remaining cities and provinces nationwide.

Some ‘hot’ models in the markets, including: Mercedes Benz with prices ranging from 1.39 billion VND (59,600 USD) to 4.6 billion VND will now have registration fees of between 83 million VND and 276 million VND; Huyndai Accent priced at 426 million VND will now have registration fee of about 26 million VND; as for Toyota Fortuner priced at 1.033 billion VND, customers will now pay about 62 million VND.

Moreover, dealers are also offering attractive promotions and discounts for many models. Therefore, customers will enjoy great benefits when buying a car at this time.

Thanks to this reduction, locally assembled automobile models have a big advantage over imported cars. To be able to compete, imported cars are facing pressure to reduce prices further.

Phuc also required the Ministry of Planning and Investment to build a project on solutions for supporting industries, taking advantage of opportunities from the investment wave after the COVID-19 pandemic and developing ecosystems for the automobile industry.

Theo VNA