Vietnam’s Motorbike Market Accelerates, Topping Southeast Asia with Electric Bike Boom

The Vietnamese motorcycle market experienced a significant expansion of 14.9% in the previous year, marking the most substantial growth rate within Southeast Asia. This surge was, in part, propelled by a substantial increase in sales of electric motorcycles.

Vietnam reportedly sold 3.4 million units, positioning it as the second-largest market in the region, with Indonesia leading at 6.5 million units. This sales volume also marks Vietnam as the fourth largest global motorcycle market and the third largest market for electric motorcycles.

Reshaping the Two-Wheeler Market

The landscape of the motorcycle market in Vietnam is undergoing a significant transformation due to investments in electric two-wheelers. This shift is not only fueled by China’s major manufacturers but also by domestic producers.

In parallel with this market transformation, a mature market is also experiencing growth, characterized by discerning consumer demand and steadfast brand loyalty. Honda, in particular, continues to enjoy a strong consumer base.

Adopting Electric Vehicles Amid Environmental Policies

The adoption of electric vehicles is accelerating in response to strict environmental policies. A notable factor expediting this shift towards electrification is the announcement by Hanoi authorities of a prohibition on internal combustion engine vehicles by July 2026.

Pressure on Traditional Manufacturers

Traditional motorcycle manufacturers are increasingly feeling the heat from specialists in electric scooters. Honda, a market leader for over seven decades, reported a meager growth of 1.3%. Their long-standing competitor, Yamaha, experienced a decline of 17.3%, subsequently losing its second-place standing.

Interestingly, VinFast, a domestic electric mobility brand, has claimed the second spot, with a remarkable 532% growth. This development underscores the swift rise of domestic electric mobility.

Several other players focused on electric models are also reporting robust growth. China’s Yadea, for example, has seen a 61.6% increase. Local manufacturers Pega and Dibao reported growth rates of 60% and 75% respectively, ranking them fourth, fifth, and sixth.