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Business Economy News Vietnam

Vietnam’s Domestic Motorcycle Sales Sluggish

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Motorcycle sales in Vietnam have shown a modest increase in the recent quarter, but cumulative sales since the beginning of the year significantly decreased compared to the same period last year, according to the Vietnam Association of Motorcycle Manufacturers (VAMM).

In the third quarter of 2023, VAMM members including Honda, Piaggio, Suzuki, SYM, and Yamaha Motor Vietnam were reported to sell a total of about 610,000 motorcycles of all types, a 3.69% increase compared to the previous quarter. However, members’ total sales in the first nine months of 2023 of nearly 1.84 million vehicles represented a 16% decline compared to the same period last year.

Honda Vietnam, which holds more than 80% of the motorcycle market share among VAMM members, experienced a decrease in sales as well. In October 2023, Honda Vietnam sold 180,881 motorcycles, reflecting a 25.7% decrease compared to the same month last year.

VAMM members do not reflect the entire Vietnamese motorcycle market. Other commercial vehicle manufacturers such as Kymco, Ducati, Kawasaki, BMW, Benelli, Harley Davidson, Triumph, Royal Enfield, Motorrad, and Peugeot, as well as electric vehicle brands like VinFast, Selex Motor, Yadea, and Dat Bike, have not disclosed their results.

The decline in the Vietnamese motorcycle market is due to factors like a lack of completely new or breakthrough models. Additionally, the economic situation in Vietnam is still challenging after the COVID-19 pandemic, leading consumers to tighten spending. Fluctuations in gasoline prices and concerns about environmental pollution are also driving some consumers to switch to electric vehicles.

Read this analysis HERE.

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