Hybrid Cars to Enjoy Tax Breaks from 2026: Save Up to Hundreds of Millions of Dong on Your Purchase

Starting January 1, 2026, hybrid vehicles will enter a “golden era” thanks to groundbreaking tax incentives. This move is expected to significantly boost the hybrid segment, which has been growing but not yet booming in recent years.

According to the amended Special Consumption Tax Law passed by the National Assembly on June 14, 2025, all hybrid vehicles, including self-charging hybrids (HEV) and plug-in hybrids (PHEV), will be subject to a special consumption tax rate of 70% compared to their gasoline counterparts. The new regulation takes effect from 2026, replacing the previous approach that only favored PHEVs, while HEVs were taxed similarly to traditional internal combustion engine vehicles.

To qualify for the tax incentive, hybrid vehicles must consume at least 30% less fuel than their gasoline counterparts in the same segment. Grouping HEVs and PHEVs under the same incentive not only simplifies the policy but also reflects the trend of promoting emission reduction solutions during the transition phase, when pure electric vehicles still face infrastructure and cost barriers.

The impact of the special consumption tax reduction goes beyond a single figure, creating a “ripple effect” on the overall cost of vehicle ownership. As the special consumption tax decreases, value-added tax (VAT) and registration fees will also decrease proportionally. For an imported vehicle with an original value of approximately 500 million VND (under 2.0L engine capacity), consumers can save directly over 73 million VND when considering both special consumption tax and VAT. For high-end vehicles with larger engine capacities and higher prices, the reduction can reach hundreds of millions of VND, helping hybrid vehicles gradually eliminate the price barrier compared to traditional gasoline vehicles.

Although the new regulation will take effect in just a few days, the wave of incentives has already spread strongly across dealerships. Major players like Toyota and Honda have taken a proactive step by offering 100% registration fee support or direct discounts of hundreds of millions of VND for their strategic models. Notably, the Toyota Camry HEV is currently priced at around 1.3 billion VND, while the Honda CR-V e:HEV RS is receiving support equivalent to 126 million VND. Even newcomers like the BYD Sealion 6 PHEV have joined the race with valuable gift packages and registration fee support.

With the synchronized changes in tax policy and early market stimulation from manufacturers, 2026 is forecasted to be a breakthrough year for hybrid vehicles in Vietnam. As consumers remain cautious about the cost and infrastructure of pure electric vehicles, hybrids are likely to become a more affordable and suitable choice during the transition phase of the domestic automotive market.

TH (Tuoitrethudo)