In the third quarter 2023, VAMM members including Honda, Piaggio, Suzuki, SYM and Yamaha Motor Vietnam reported selling a total of 610,635 motorcycles of all types, a 3.69 per cent increase compared to the previous quarter. However, members’ total sales in the first 9 months of 2023 of nearly 1.84 million vehicles represented a 16 per cent decline compared to the same period last year.
|Customers view VinFast e-bikes in a shop in Hà Nội. — Photo cafef.vn
HÀ NỘI — Motorcycle sales in Việt Nam have showed a modest increase in the recent quarter, however cumulative sales since the beginning of the year significantly decreased compared to the same period last year, according to the Việt Nam Association of Motorcycle Manufacturers (VAMM).
In the third quarter 2023, VAMM members including Honda, Piaggio, Suzuki, SYM and Yamaha Motor Vietnam were reported to sell a total of 610,635 motorcycles of all types, a 3.69 per cent increase compared to the previous quarter. However, members’ total sales in the first nine months of 2023 of nearly 1.84 million vehicles represented a 16 per cent decline compared to the same period last year.
Honda Vietnam, which holds more than 80 per cent of the motorcycle market share among VAMM members, experienced a decrease in sales as well. In October 2023, Honda Vietnam sold 180,881 motorcycles, reflecting a 25.7 per cent decrease compared to the same month last year. For the fiscal year 2024 (from April 2023 to March 2024), Honda Vietnam’s total motorcycle sales reached 1,171,108 units, showing a year on year 12.9 per cent decrease.
It’s important to note that the provided sales figures only represent VAMM members and do not reflect the entire Vietnamese motorcycle market. Other commercial vehicle manufacturers such as Kymco, Ducati, Kawasaki, BMW, Benelli, Harley Davidson, Triumph, Royal Enfield, Motorrad and Peugeot, as well as electric vehicle brands like VinFast, Selex Motor, Yadea and Dat Bike, are present in the market but their business results are not disclosed.
Industry experts attribute the decline in the Vietnamese motorcycle market to several factors. Firstly, there is a lack of completely new or breakthrough models, with most offerings upgraded or improved versions. This lack of novelty might not attract consumers. Additionally, the economic situation in Việt Nam is still challenging after the COVID-19 pandemic, leading consumers to tighten spending. Fluctuations in gasoline prices and concerns about environmental pollution are also driving some consumers to switch to electric vehicles.
Based on expert forecasts, it is unlikely that VAMM members will achieve sales of more than three million vehicles in 2023, as they did in 2022, due to economic factors and the increasing market share of electric vehicle products.
Trend of using green vehicles
According to the evaluation conducted by Vero, a brand communication consulting unit in ASEAN, Việt Nam has a thriving electric motorbike market. The country’s high number of motorbikes on the streets has driven the continuous development of the electric motorbike industry. In recent years, electric motorbike sales in Việt Nam have grown by approximately 30 to 35 per cent, making Việt Nam the largest electric motorbike market in the ASEAN region and the second largest globally, only after China.
A report from motorcycledata.com suggests that due to increasing gasoline prices and growing environmental concerns among consumers, electric motorbike sales are expected to surpass those of gasoline motorbikes.
Data from Vero IQ indicates that the annual growth rate of users searching for electric motorbikes is 71 per cent (data from January 2019 to March 2023). This demonstrates that Vietnamese consumers are gradually recognising electric vehicles as environmentally friendly transportation options.
Apart from VinFast, a domestic car company that focuses on producing pure electric vehicles, Yadea, the largest electric motorbike manufacturer in the world based in China, invested US$100 million in an assembly factory in Bắc Giang Province. The factory is expected to have a production capacity of two million electric motorbikes per year.
VinFast, in its report, recorded impressive revenue from electric motorbikes in the third quarter of 2023. They delivered 28,220 vehicles, a 177 per cent increase compared to the previous quarter and a 113 per cent increase compared to the same period the previous year.
Despite the growth of the electric motorbike market, joint ventures in Việt Nam have not fully transitioned to this type of green vehicle. Piaggio announced plans to introduce the Vespa Elettrica electric vehicle in 2018 but has not yet launched the product. Meanwhile, Honda Vietnam, on the other hand, collaborated with Vietnam Post to pilot delivery using the Honda Benly-e electric vehicle.
In 2022, Honda Vietnam registered for industrial design protection for the U-Go electric vehicle, but no experimental results or plans have been announced as of now. By the end 2022, Yamaha Motors Vietnam began selling the first electric motorbike model, Yamaha Neo’s, and has not introduced any other electric motorbike models thus far.
The electric motorbike market in Việt Nnam is dominated by domestic companies such as VinFast, Dat Bike and Selex Motor, along with Yadea from China.