Car importers raise concerns over vehicle quota imposition

Car importers raise concerns over vehicle quota imposition

Auto businesses expect negative consequences if the government re-imposes a vehicle quota system, according to car dealers.

The car dealers made the comment earlier this week after learning the Ministry of Industry and Commerce is considering a policy to re-impose the vehicle quota system as part of measures to curb the rising number of vehicles in Vientiane.

They said demand for vehicles in Vientiane is still rising; therefore it was not a good idea for the government to introduce a policy that goes against the current demand for vehicles as it would have negative effects on their businesses.

“We expect it will have a negative impact if the quota system is re-imposed,” Manignom Group President, Mr Souksamone Sihathep told Vientiane Times on Tuesday.

The government abolished the vehicle quota system a decade ago, allowing business people to import as many cars as they could sell, one of the main conditions which has created the boom in car sale businesses in the country.

According to a report from Ministry of Industry and Commerce, there are more than 10 major car importers in the country. There is no exact data available on the number of car yards but observers said it would exceed one hundred in Vientiane.

One of the main car dealer venues is along T2 road in central Vientiane.

Mr Souksamone said car dealers expected prices of vehicles in the country would rapidly increase once the government re-imposed the vehicle quota, meaning car importers would have to compete with each other to get a quota.

“The price of a quota to import a car would be more expensive than the price of the vehicle,” he said.

He also said that despite the government having abolished the quota system, car importers have to register the number of cars which they will import each time, adding that the registration process is one of the procedures which the car dealers have to fulfill before importing the vehicles to sell in the country.

A number of car dealers along the T2 road told Vientiane Times that imports of vehicles should be made in accordance to market demand, adding that if the government controls the supply of vehicles, it would cause prices to increase and consumers will have to pay the price.

Many people said the government should improve public transport encouraging people to use it rather than their private vehicles, one of the main conditions to reduce traffic jams in the capital. They also said people would complain if the government curbed the supply of private vehicles while public transportation is not improved.

vientiane times