Vietnam Motorcycle Market is booming, driven by the acceleration in the electrification process. In Q1 2026 sales hit 1 million sales(+29.4%) marking the highest quarter ever, projecting annual sales over 4 million. Vinfast increased 332%.
Motorcycle Industry: Trends and Outlook
Vietnam’s motorcycle industry—the fourth largest globally and the third-largest electric two-wheeler market—is accelerating, supported by strong macroeconomic momentum and the rapid adoption of electric vehicles.
Investment in new-energy two-wheelers by local manufacturers and major Chinese OEMs is reshaping the market. However, growth is occurring in an increasingly mature environment characterised by selective consumer demand and strong brand loyalty, particularly toward Honda.
After a solid performance in 2024, the market accelerated further in 2025, with sales rising 14.9% to 3.4 million units. However, sales were still near 10% lower than in 2019 with further space to grow.
This space seems to be explored in 2026, with a roading performance reported in the first quarter, and in March overall. Quarterly sales hit 1 million sales, accelerating 29.4% from the correspondent period last year and marking the highest quarter ever, projecting annual sales over 4 million.
A sharp contribution to the growth is given by the electric vehicle adoption, which is booming, supported by tightening environmental policies. The announcement by Hanoi authorities of a ban on internal combustion engine vehicles from mid-2026—while difficult to fully implement in a city with more motorcycles than residents—has sent a strong signal and is accelerating the shift toward electrification.
In addition, the huge increase on petrol price reported for March, pushed customers towards EVs and the segment boomed 177% in the quarter.
In March, the segment leader, Vinfast sold over 90.000 units, which is near the double of the entire previous quarter sales, although it was not able to satisfy all customers, increasing the order portfolio.
Market Leaders and Performance
In the competitive landscape, traditional manufacturers are increasingly challenged by electric scooter specialists.
Honda, the market leader for over 70 years, posted marginal growth of +16.6%, while long-standing rival Yamaha declined 12.4%, losing the second place, although a very positive March performance.
VinFast surged into second position with extraordinary growth of +332%, reflecting the rapid rise of domestic electric mobility. Other fast-growing electric players followed, with Chinese OEM Yadea up 74.0%, and local manufacturers Pega (+41.3%) and DK Bike (+130.8%) ranking fourth, fifth, and sixth respectively.
