Vietnam electric two-wheeler market has been among some of the fastest-rising markets globally due to the great presence of market players and the rise in investment by them in different research and development activities. In the Southeast Asian country, the present number of registered motorcycles goes beyond 70 million, and this number is anticipated to rise further during the future. In the initial four months of 2023, over 1 million new motorcycles were manufactured across the country. Forbes estimated that a source from VinFast discovered that nearly 30,000 electric motorbikes from VinFast have been sold. VinFast’s factory presently has a production volume of 250,000 units annually, and the company predicts scaling up to manufacture 1 million products per year during the future. While several electric motorbike brands existed before VinFast entered the market, VinFast has significantly expedited the growth of the electric motorbike industry. This momentum began with the introduction of its first product, VinFast Klara, in 2018.
Before VinFast’s entry, consumers were acquainted with Pega electric motorbikes. The consistent demand for two-wheelers remains robust, with an annual purchase of 3 million motorbikes. In addition, Vietnam electric two-wheeler market sees the sale of nearly 400,000-500,000 electric motorbikes each year. Analysts predict a rising adoption of electric two-wheelers, particularly in large urban areas where petrol-run vehicle restrictions are imposed. The emissions from conventional motorbikes are considered a significant contributor to air pollution in cities such as HCM city, and Hanoi city. The increasing potential has attracted different electric motorbike brands to Vietnam, seeking to establish dominance in a market with limited competition. One example is MBI, a South Korea brand, which entered Vietnam in September 2019, introducing three models – Mbi V, Mbi S, and Mbi X – with prices ranging from VND 39,800,000 and VND59 million.
Also, in November, China’s Yadea, recognized as the world’s top-selling manufacturers, entered the Vietnamese market. Yadea unveiled three models – Ulike, G5, and Yadea E3 – priced between VND16-40 million, positioning them in direct competition with VinFast Klara. In addition, the Vietnam Association of Motorcycle Manufacturers reported a decline in sales for its five members, including Suzuki, SYM, Piaggio, Yamaha, and Honda, selling a total of 3.3 million motorbikes of all types in 2019, reflecting a decline of 3.8% compared to 2018.
Although, amid supply chain challenges and increasing US-China trade tensions, producers are redirecting investments to smaller markets in Asia to mitigate risks. Notably, Japan has earmarked a $2.2 billion fund to support businesses relocating from China, while the US government motivates companies to return or relocate. In this context, Vietnam has emerged as an attractive destination for motorcycle manufacturers. Honda Vietnam, Piaggio Vietnam, and Yamaha Motor Vietnam have established a significant presence, collectively owning and functioning different factories with substantial production capacities, further affirming Vietnam’s appeal in this industry.
Despite this, the Vietnamese motorcycle market faces challenges, displaying signs of saturation production has increased, but the corresponding demand and purchasing power have not kept pace. This situation compels manufacturers to pivot towards product diversification, especially in the premium segment. In addition, there is a strategic focus on developing exports, including fully assembled models and spare parts, to international markets to navigate the complexities of the domestic market.
Yamha Motor Vietnam has actively engaged in exports, supplementing the Indonesian market since 2019 and becoming the first foreign factor to produce and export the NEO’s electric motorcycle to European markets. The recent inauguration of a dedicated engine assembly line reflects Yamaha’s confidence in Vietnam, with plans to initially produce engines for export to Thailand, followed by expansion to other markets such as Indonesia, Malaysia, and the Philippines, targeting an export volume of nearly 200,000 units. Similarly, Honda Vietnam has intensified its export efforts, witnessing a 25% increase in revenue in 2022, by exporting 207,000 motorcycles. With an ambitious target to export nearly a quarter of a million models in the present year, Honda Vietnam underscores its commitment to discovering international markets for fully assembled models and spare parts.
Best Brand for Two-wheelers in Vietnam
- Honda: Honda has secured a lasting trust among the Vietnamese populace over the past two decades. Originating from Japan, Honda stands as a premier brand around the globe, specifically renowned for crafting high-quality motorcycles. Its reputation is built on the foundation of powerful, fuel-efficient, and durable engines. The iconic Dream motorcycle, a testament to Honda’s legacy, continues to endure the test of time, serving riders with longevity and efficiency. Even as years pass and aesthetic trends evolve, the showcases its capability to enable long-distance rides while ensuring effective fuel saving.
- Yamaha: Yamaha, another formidable brand on par with Honda, has established a significant presence in the Vietnamese market over an extended period. Originating from Japan, Yamaha distinguishes itself by applying cutting-edge light-alloy manufacturing technology to both engine and frame construction, securing its standing as the second-largest motorcycle manufactures around the globe. Yamaha motorcycles are celebrated in Vietnam for their captivating luxurious colors, exceptionally fashionable designs, and dynamism. The immensely popular Exciter holds a special place among enthusiasts, particularly favored by many men.
- Suzuki: Suzuki, another prominent Japanese brand, has captured the interest of many Vietnamese customers over the years. Introduced with the Suzuki Viva model long ago, it continues to garner favor due to the combination of a robust engine and sleek design. Suzuki maintains a strong reputation, consistently earning high praise for its elegant design coupled with powerful engine performance.