Vietnam Motorcycles Market was reported quite negative in June, losing in double-digit and ending the first half 2019 down 5.3%, with near 1.5 million sales. While on top of the list Honda is stable all others top player have lost, with Yamaha down 20%. The new electric vehicles local producer, VinFast, was very well welcomed by the market.
Vietnamese two-wheeler industry is the fourth largest in the World, dominated by the five main local producers, Honda, Yamaha, Suzuki, SYM and Piaggio, which hold over 97% of the total market (our figures include both local produced and imported vehicles).
Following the stable growth reported in the last four years, the market started the 2019 in low tone and is keeping the negative shape.
Indeed, according to data reported by the MInister of Transportations, the start of the year was not bad, with January sales at 354.223 units (local and imported) up 4.1%, but already in February the mood changed and the 195.878 sales were down 8.7% from the correspondent month last year. In March the data was really disappointing, with only 207.039 sales, down 17.9%, ending the first quarter with 757.140 sales, down 6.2%.
In April sales have been 269.789, -0.7% from the correspondent month last year and the temporary recovery shown in May (258.185 sales, +1.2%) was lost in June when sales at 224.337 units were down a deep 10.7%.
The first half ended with 1.491.332 sales, down 5.3%.
After a shy start of the year, the market leader Honda recovered 5.8% in April and 3.7% in May and thanks to a flat June performance ended the first half up 0.2% while the main challenger, Yamaha, has lost so far 22.8% from the correspondent period last year. Yamaha has just launched two new models in the market aiming to recovery, but we need to wait for next months to see the effect.
In third place there is SYM, down 12.1% followed by Piaggio, down 9.3% and Suzuki, up 4.7%.
Among imported brands, Benelli shines, while the new brand, Vinfast, an e-vehicles local maker, launched the first scooter, the Klara, with huge interest and early success.
In no other economic and industrial sector Vietnam has achieved the relevance actually owned in the 2-Wheeler global industry.
Indeed, while the country is fast growing in several industries and gaining steps within the ASEAN region, in the motorcycles sector the market represents the 4th bigger market in the World, with over 3 million vehicles sold each year and manufacturer cluster involving Top Manufacturers, like the Japanese Honda, Suzuki and Yamaha, the Taiwanese SYM and the Italian Piaggio. They produce over 3 million units per year, mainly for the domestic market.
In the 2018 the market hit the best sales level in the last 8 years, while the all time record, hit in the 2011 at 4.4 million units stands untouchable.
In the 2018 the market scored the 4th increase a row, with 3.38 million sales (including both local producers and import) and was behind just to India, China and Indonesia, with a gap of near 1.4 million toward the first follower, The Philippines.
The outlook for the 2019 is still positive, considering the local economy will keep the momentum and our experts foresee a growth between 3 and 5 percent.
In Vietnam, motorbikes are the main means of transportation of big cities. Motorcycles are currently responsible for about 80% of travel needs in the city. Previously, two big cities, Hanoi and Ho Chi Minh City, proposed a scheme to ban motorbikes from the inner city to reduce traffic congestion.
In August 2017, Hanoi City issued Decision No. 5953 / QD-UBND approving the scheme “Strengthening the management of road transport means to reduce traffic congestion and environmental pollution in Thanh Hoa. Hanoi city, the period of 2017 – 2020 vision 2030 “. According to the approved project, Hanoi may limit and proceed to stop operating motorcycles in the districts in 2030.
Following Hanoi, in August 2018, Ho Chi Minh City also issued the project “Strengthening public transport in combination with controlling motor vehicles in Ho Chi Minh City”. Under this project, Ho Chi Minh City can restrict motorbikes in some central districts and proceed to ban motorbikes by 2030.