Business News 20/04/2024, 17:08

Motorcycle market continues to decrease, giving opportunities for electric motorcycles

The motorbike market of the 5 largest manufacturers in Vietnam continues to be in a decline phase. Some experts believe that this is an opportunity for electric motorbikes to "explode" in Vietnam, not only contributing to reducing emissions as committed at COP26 but also being a new sustainable direction for businesses.

Motorcycle market continues to decrease, giving opportunities for electric motorcycles

The gasoline motorbike market continues to decline sharply

Latest report of the Vietnam Association of Motorcycle Manufacturers (VAMM), sales in the first quarter of 2024 (from January 2024 to the end of March 2024) are 603,745 vehicles, decline by 4.88% compared to the same period in 2023. The five members of VAMM currently include Honda Vietnam Company, Piaggio Vietnam Company, Vietnam Suzuki Company, SYM Vietnam Company and Yamaha Motor Vietnam Company.

According to VAMM data, sales in the first quarter of 2020-2023 were 731,077 units, 701,454 units, 753,571 units and 634,688 units, respectively. Thus, except for 2022, the Vietnamese motorbike market is on a steep decline. The reason 2022 is the only bright spot in growth is due to the sudden increase in travel demand since the end of social distancing.

Total financial sales for the whole year 2024 (from April 2023 to March 2024) are 2,051,194 vehicles, decline by 12.2% compared to fiscal year 2023. Currently, HVN is still the largest motorbike company in Vietnam with a market share of 82.5%.

The saturation of the Vietnamese motorbike market was predicted by experts nearly 10 years ago. However, Vietnam is still the 4th largest motorbike market in the world with annual consumption of nearly 3 million motorbikes. Therefore, the major motorcycle brands do not want to lose their market share. Some manufacturers have had enough time to adjust their strategies to suit the new situation.

Accordingly, HVN focuses more on exporting complete vehicles. In the future, exports will continue to be HVN's key business segment, including CBU vehicles and components.

For Suzuki Vietnam, there are currently only 3 manual transmission models and 1 scooter model with prices ranging from 48-132 million VND, but there are not many improvements in design. Popular models such as GSX-S150, GSX-R150, Impulse 125 and Intruder 150 have all stopped selling. This is a clear move showing that the Japanese automaker will no longer focus on the motorbike segment but will focus its development efforts on the automobile sector.

Opportunity for electric motorbikes

The Government's strategy to reduce CO2 emissions in the transportation sector and the decline of the traditional motorbike market are creating a rare opportunity to develop electric motorbikes in Vietnam.

According to research by Motorcycles Data, although starting to enter the "automotive" stage, Vietnam is still a large motorcycle market in Southeast Asia and the world. In general, motorbikes are still a familiar means of transportation, suitable for the income of the majority of workers.

Currently, consumers have many options for electric motorbikes in the price range of 18-30 million VND, cheaper than many scooter models on the market. Therefore, the transition from internal combustion engine vehicles to electric vehicles will promise to meet emission reduction requirements and cope with the current decline in general sales.

According to Motorcycles Data's assessment, VinFast, Pega and Yadea are the three leading brands of electric motorbikes in Vietnam. However, it is difficult for users to access information about these brands because most manufacturers do not publicly disclose their periodic sales, except for VinFast.

The potential for developing the electric motorbike market in Vietnam is huge. In the future, when traditional motorbike brands such as Honda, Yamaha, SYM, Piaggio, and Suzuki focus on investing in electric motorbikes, the market will receive positive signs of recovery and consumers will benefit as a result of competitive activities.

Vneconomy/ Translator: Ngoc Mai
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