Vietnam Motorcycles Market is recovering. After the first sixth months of 2024 sales have been 1.33 million (-1.4%) thanks to a positive Q2. Honda and Yamaha are on top of the market, although losing sales from the previous year.
Vietnam Motorcycles Industry Trend and Perspectives
Vietnam holds the fourth-largest two-wheeler market in the world and the third-largest in electric two-wheeler sales. The market is undergoing a significant transformation toward low-emission vehicles, driven and supported by the government. However, this transition is being challenged by established OEMs, particularly Honda and Yamaha.
It is estimated that more than two-thirds of individuals in Vietnam own a two-wheeler, and over 90 percent of households possess a scooter.
Vietnam has one of the fastest-growing GDPs in the world. Coupled with the pressing need to reduce significant urban pollution, the two-wheeler sector is expected to undergo substantial transformation in the coming years.
Following the post-COVID recovery observed in the previous two years, and despite the continued rapid GDP growth, the domestic motorcycle market has reported nearly negative year-on-year figures in recent months. The performance in 2023 was quite below the expectations.
Final 2023 data reports total 2-wheeler sales at 2.78 million (-18.1%)—the worse results in the last 15 years; consequently, expectations for a recovery in 2024 were high.
However, even the start of current year was disappointing, with first quarter sales down 5.9%, followed by a new disappointing April, with sales again down 6.4%, and although May showed some recovery, the figures were still down by 1.2%.
After the first sixth months of 2024 sales have been 1.33 million (-1.4%) thanks to a positive Q2. The market is declining in all sectors, with the scooter segment down 1.4% and the motorcycle one down 6.9%.
Even the electric segment is struggling, with the L1 category (corresponding to engines below 50 cc) experiencing a decline of 4.2%. However, the L3 category saw an increase of 9.4% overall.
In the competitive arena, the two market leaders, Honda and Yamaha, reported different performance, although both were still negative year-on-year. Honda saw a decline of 0.6% , while Yamaha dropped 5.4%.
The position behind have been taken by EVs specialist. Some have also struggled this year: Pega is down 2.7%. On the other hand, the Chinese Yadea, which last year celebrated its first 100,000 sales since opening a local plant in 2019, is up 17.7% year-on-year, while Vinfast, recently listed on Nasdaq, lost 25.7% year-on-year.
