Vietnam. Motorcycles market continues to shrink in September

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vietnam motorcycles
vietnam motorcycles

Vietnam Motorcycles Market continues to shrink in September and after the first nine months, 2020 sales have been 2.07 million, down 15.9%. Consequently full year 2020 outlook has been moderately downgraded at 3.07 million units, down 10.9% from the previous year.

2020 Motorcycles Market Data & Outlook

Although the local government has proved high ability on controlling the effects of covid 19 within the country, the motorcycles industry is suffering as few others this year.

The year on year trend differs from the most of other markets, considering the fall reporte in the Q2 was moderate (-29.5%) with total new two wheeler sales in the first half at 1.35 million units (-14.8%).

In Q3, while other markets are recovering, Vietnam is suffering, with July sales down 7.5%, followed by August down 15.1% and September down 28.7%.

After the first nine months, 2020 sales have been 2.07 million, down 15.9%

Honda is the best-seller with over 73% of market share, followed by Yamaha, while the new local brand, VinFast, producing only electric vehicles jumped in third place sustained by demand for individual mobility and incentives for electric vehicles.

Market Outlook 2020-2025

In the Beyond Covid19 project, we are revising on monthly basis and sharing with our Clients the 2020-2025 motorcycles market outlook.

As far as Vietnamese industry, the July performance was below expectations and in general the actions in place to counteract the covid19 spread are reducing our confidence on the market recovery.

Consequently full year 2020 outlook has been moderately downgraded at 3.07 million units, down 10.9% from the previous year.

2021 outlook has been reduced as well and actually is at 3.2 million, not yet recovering the 2019 pre-covid level.

Vietnam Motorcycles

Pollution

In Vietnam, motorbikes are the main means of transportation of big cities. Motorcycles are currently responsible for about 80% of travel needs in the city. Previously, two big cities, Hanoi and Ho Chi Minh City, proposed a scheme to ban motorbikes from the inner city to reduce traffic congestion.

In August 2017, Hanoi City issued Decision No. 5953 / QD-UBND approving the scheme “Strengthening the management of road transport means to reduce traffic congestion and environmental pollution in Thanh Hoa. Hanoi city, the period of 2017 – 2020 vision 2030 “. According to the approved project, Hanoi may limit and proceed to stop operating motorcycles in the districts in 2030.

Following Hanoi, in August 2018, Ho Chi Minh City also issued the project “Strengthening public transport in combination with controlling motor vehicles in Ho Chi Minh City”. Under this project, Ho Chi Minh City can restrict motorbikes in some central districts and proceed to ban motorbikes by 2030.

vietnam motorcycles