Business News 25/05/2023, 04:10

The surging popularity of electric motorcycles amidst declining demand for traditional bikes

The change in awareness and consumption habits has rapidly increased the demand for electric motorbikes in recent years.

The surging popularity of electric motorcycles amidst declining demand for traditional bikes

Motorcycle demand in Vietnam is on the decline

According to a report by the Vietnam Association of Motorcycle Manufacturers (VAMM), the total demand for motorcycles in the past 5 years has been on a downward trend. After two years of being affected by the COVID-19 epidemic, the demand for motorcycles in Vietnam recovered weakly due to the disruption of the supply chain for a long time. However, the more noticeable cause was the economic downturn amid the saturated motorcycle market, leading to a faster decline cycle in sales for the whole industry.

According to statistics for the period 2003-2022, the market formed 5-year cycles in which the growth trend appeared in the first 1-2 cycles, then gradually slowed down and declined. For example, in the period 2018-2022, there was a decrease in total demand compared to the sales of the previous cycle, around the year 2016.

According to VAMM, in 2022, the motorbike market's sales only reached about 3 million units, reducing by 8% compared to 2019, the time before the epidemic broke out. Actual data in the motorbike industry in January-February 2023 showed that aggregate demand may continue to decline.

Electric motorcycles - the highlight of Vietnam's motorcycle market

In the general market, the positive point in the past 3 years has been the appearance of electric motorcycles. Electric motorcycles are not a new concept. However, in previous years, electric motorbikes "disguised" as electric bicycles were mainly consumed in rural areas with low prices and quality.

In recent years, the trend of using electric motorbikes has gradually become more obvious in big cities, especially Hanoi and Ho Chi Minh City, thanks to their convenience, economics, and environmental friendliness. In particular, people's demand for electric motorbikes has increased because of the appearance of domestic manufacturers with methodical investment strategies, focusing on improving product quality and diversifying models.

Currently, electric motorcycle models with luxurious and fashionable designs such as the Evo200, Feliz S, and Vento S are suitable replacements for traditional vehicles due to the pressure of excessively high gasoline prices and environmental pollution caused by emissions.

Along with that, the efforts of brands to increase the operating distance of electric motorbikes are undeniable. For example, VinFast introduced to the market the LFP battery line, which has high durability and a long operating range. Feliz S, Klara S, Vento S, or Theon S can all go up to more than 150 km per charge, and the highest is the Evo 200 with a maximum distance of 203 km per charge.

Electric motorcycles are now also more convenient, capable of connecting to smartphones to easily read errors, check information remotely, or update software. They are user-friendly, like a phone, and transparent in all information, creating motivation for users to turn to electric motorcycles.

Using eco-friendly and low-cost means of transport is a global trend. In the world, the demand for electric motorbikes is forecast to increase in big cities because of their traffic characteristics, short-distance travel habits, and low costs. For Vietnam, despite entering the market's saturation cycle, the total demand is predicted to still be over 2.7 million vehicles per year in the period 2023-2030. With high-quality products meeting the needs of users, this is an opportunity for electric motorcycles to gradually dominate the market, thereby creating a green habit for everyone.

Vietnamnet / Translator: Hoàng Trúc
Share

Sign up for more information