Switch to the dark mode that's kinder on your eyes at night time.

Switch to the light mode that's kinder on your eyes at day time.

Add New Post

Switch to the dark mode that's kinder on your eyes at night time.

Switch to the light mode that's kinder on your eyes at day time.

Add New Post
in

Vietnam’s Motorcycle Industry Faces Challenges with Surplus Inventory and Decreasing Demand

Surplus inventory and declining demand plague Vietnam's motorcycle industry

The Vietnam Association of Motorcycle Manufacturers (VAMM) reported that in the first half of 2024, the five major companies—Honda Vietnam, Yamaha Vietnam, SYM Vietnam, Vietnam Suzuki, and Piaggio Vietnam—sold a total of 1.22 million motorcycles, holding over 90% of the market share as foreign-invested enterprises.

Besides the VAMM members, several other companies like VinFast, DatBike, Pega, Yadea, and Detech are involved in electric motorcycle production. The total motorcycle consumption in Vietnam for the first half of 2024 is estimated to be about 1.4 million units.

Despite this, statistics from the General Statistics Office reveal a decline in production, with 1,455,000 new motorcycles manufactured in the first half of 2024, down by 1.3% compared to the same period in 2023. Combined with over 300,000 units left over from 2023, the surplus supply now exceeds demand.

VAMM data shows stagnant growth in sales for the five member companies, reporting sales of 603,745 units in Q1 2024 and 603,127 units in Q2 2024.

Honda Vietnam, dominating with an 80% market share, sold 475,630 units in Q2, a 6.9% decrease from Q1 and 1.8% lower compared to the same period last year. Cumulative sales for Honda Vietnam in the first half of 2024 decreased by 4.6% year-on-year.

Challenges such as economic hardships leading to reduced consumer spending, market saturation, lack of innovation in traditional models, and the rise of ride-hailing services impacting transportation preferences have contributed to the market’s struggles.

Price cuts have been prevalent in many popular Honda models, with significant reductions observed in Hanoi. For example, Honda Lead models are now priced below retail, along with various other models like Honda SH 350i, Honda SH 125i, Honda Winner X, among others, offering discounts and gifts to attract buyers.

With the newly implemented Road Traffic Safety and Order Law requiring emissions testing for motorcycles from January 1, 2025, consumers are leaning towards electric motorcycles to sidestep testing and save on fuel costs, aligning with environmental conservation efforts.

This shift is likely to decrease the demand for gasoline motorcycles, impacting their pricing dynamics going forward.

Given approximately 73 million registered motorcycles in Vietnam, primarily gasoline-powered, efforts to control emissions are crucial for environmental preservation and enhancing the overall quality of life.

Although motorcycles are expected to retain their status as the main mode of transport in Vietnam, managing emissions through regulatory measures, promoting electric motorcycles, public transportation, and potentially imposing higher taxes and fees to deter gasoline motorcycle usage are recommended by experts.


Report

Check This:  An Esthetician’s Guide to the Safest Sunscreens

What do you think?

1.2k Points
Upvote Downvote

Leave a Reply

Avatar

Your email address will not be published. Required fields are marked *

Back to Top

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website. %privacy_policy%

Add to Collection

No Collections

Here you'll find all collections you've created before.