Vietnam 2021. In the first quarter Honda is on top of the list

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vinFast plant
vinFast plant

Vietnam Motorcycles Market kept in the first quarter 2021 the previous quarters slow pace. Sales have been 777.638 (-2.0% vs the 2020 and -2.1% vs the 2019). Honda is market leader ahead of Yamaha while electric vehicles segment is fast growing.

Motorcycles Market Trend 2021

The Vietnamese motorcycles market started the 2021 keeping the slow pace started in the second half last year, confirming our expectation for a not immediate recovery of high sales level. 

Indeed, first quarter sales have been 777.638 (-2.0% vs the 2020 and -2.1% vs the 2019).

Market leader is again Honda with 532.546 sales (-5.8%) followed by Yamaha with 144.364 (-0.8%) and Vinfast, first time on podium with 29.018 (+21.6%).

In 2020 the Motorcycles market dropped below the 3 million sales after a decade

Already few years ago the government announced the target to shift 100% motorized two wheelers park from ICE to EVs by 2030, as not delayable action to fight against pollution. Vietnam was ranked the 15th most polluted country in the world in 2019, according to IQAir, an air quality technology company.

However, not serious steps have been done in this direction before the arrival of Covid 19 pandemic, with local producers perched to defend their margins in the current ICE line up not introducing any electric model for sales.

The 2020 represents a sharp corner point. The market has been hit by the multiple effects of the pandemic, although the government has proved high ability on controlling the evolution, and sales fell down as in the entire region, more for the economy decline due to the fall of tourism and export, than for lockdown measures.

While the market declined sharply, the growth of electric scooter manufacturers has been strong with local brands growing on the path created by VinFast and with the landing of giants, like the Chinese Yadea, which started local productive operations.

The champion of them is the local manufacturer VinFast, producing only electric vehicles both in the two and four wheelers, which started up only two years ago, already achieving dramatic results, with over 10k sales per month.

Therefore, in the 2020 the total two-wheeler market fell 14.4% ending at 2.84 million sales, first time below the 3 million units after over a decade.

While losing share under the emerging e-scooter manufacturers, Japanese are still dominating the scene, with Honda undisputed market leader with 2.1 million sales (-14.7%9 followed by Yamaha with 471.527 (-16.7%) and VinFast able to sell already more than 100.000 e-scooter in a single year, over doubling the 2019 level, in the second year of operativity and with a new plant under building to feed to strong demand.

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.