Vietnam 2021. EVs Manufacturers Gain Terrain in the Lower Market in a Decade

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vietnam motorcycles
vietnam motorcycles

Vietnam Motorcycles Market is still weak. Having reported a first half with 1.5 million sales (+7.3%) the third quarter was really negative, due to restrictions imposed by covid19, with sales fall 39%. Year To Date September sales are 1.95 million, down 6.8% vs 2020 and 22.0% vs the 2019.

Motorcycles Market Trend 2021

Unique in the AEAN area, the Vietnamese two wheeler market already started the electrification transaction, following the pathway shown by the Chinese market.

Dominated by Japanese manufacturers which have colonized the country creating a huge hub for domestic and export with over 3 million annual sales, in the last five years several new local venture started up solicited by government subsidies and focused on electric mopeds or scooters.

They gained terrain and power with the landing of Chinese giant Yadea (2019) aggressively targeting the students and first bike purchaser in general while directly attaching the establishment, even with comparative advertising.

Finally, in order to support environmentally-friendly vehicles, the government issued Decree No.57/2020/ND-CP, providing new regulations on import duties on automotive components and applied from January 1 this year.

As consequence, all automotive parts imported into Vietnam for use in domestic assembly/manufacturing (including input material imported for use in the domestic production of automotive components) are to be exempt from import duties provided that such items are not also available from domestic suppliers. In order to qualify for this entitlement, imported goods must not have been merely assembled without having undergone a manufacturing process prior to their import. 

Actually the locally available production for electric two wheeler already exceed the 1 million per year, while there is not yet demand for such a volume although the EV segment is growing.

As far as the market trend, following the lost reported in the previous year (-14.8% at the lowest in a decade) the market is again in a negative pathway.

Having reported a first half with 1.5 million sales (+7.3%) the third quarter was really negative, due to restrictions imposed by covid19, with sales fall 39%. Year To Date September sales are 1.95 million, down 6.8% vs 2020 and 22.0% vs the 2019.

Market leader is again Honda with sales down 10.3% followed by Yamaha (-6.8%).

Impressive the place gained by EVs specialist, with Pega, Vinfast and Yadea ranking in 3rd, 4th and 5th place.