Honda, which has an 80 percent share of the motorbike market in Vietnam, faces a shortage of parts. After years of using a semi-automatic motorcycle, Huy Manh of Hanoi decided to buy an automatic one, a Honda Vision listed at VND32-35 million (US$1,400-1,530).
But the price quoted at HEADs (Honda Exclusive Authorized Dealers) was VND44 million, and he has to wait for two or three weeks for delivery.
The production shortage and long queues in HCMC mean many showrooms have stopped taking deposits since they cannot guarantee delivery in time. It used to take buyers only around two or three days, and up to two weeks in case of special options, to get a Honda bike delivered. The waiting time is now two weeks to a month.
Honda blamed it on a global disruption in the supply of parts and materials. Its locally assembled models like Vision, Lead and SH Mode are the worst affected. It is impossible to know when supply would return to normal levels, it said, adding it is trying its best to ensure supply to dealers.
Buyers have to pay 20-30 percent more than the listed prices for a motorbike. They had been hiked by 1-5 percent only last month.
Honda sold two million vehicles last year, or 80 percent of the market share, according to the Vietnam Association of Motorbike Manufacturers, whose members include all major companies.
Supply is more stable for other producers, but their shares are too small to satisfy the market.
Honda’s shortage not only affects its own sales but also related businesses such as accessories, painting and maintenance.