At the Vietnam Auto Expo, HVN held a press meet titled ‘Sharing Honda Vietnam’s Electrification Strategy’, revealing crucial details about its new products and upcoming business strategies after officially announcing and launching its hybrid and electric vehicles.
Electrification Plan for the Electric Motorcycle Market
Honda Vietnam announced a three-phase development strategy for electric motorcycles. The first phase, from 2024 to 2026, marks the beginning, with a goal of launching over ten electric motorcycle models globally. The second phase, from 2026 to 2030, is the business expansion phase, aiming for 30 global electric motorcycle models. The third phase involves comprehensive business expansion, striving for carbon neutrality by 2050.
According to Honda Vietnam’s assessment, the current scale of Vietnam’s electric motorcycle market reaches 500,000 vehicles per year, mainly used by students, and is largely dominated by Chinese-made electric motorcycles. While the market holds significant potential, it also faces numerous challenges. One notable issue is the lack of proper training and guidance for the primary user group, students, regarding road safety and traffic rules. Additionally, the quality of products currently in use is not high, and their relatively short lifespans lead to wastefulness.
Hence, as Honda Vietnam enters the student electric motorcycle market, they propose three solutions to address these concerns:
– Produce high-quality, safe, and user-friendly electric motorcycle models.
– Collaborate with the government to obtain consensus on providing driving licenses to high school students. These students will undergo basic and safe driving skill training designed by Honda Vietnam.
– Extend the lifespan of student electric motorcycle products through battery rental programs, buyback schemes for used vehicles, refurbishment, and resale in the second-hand market.
These strategies are vital for Honda Vietnam to rapidly capture the student electric motorcycle market, which holds immense potential.
First Electric Motorcycle Model: Honda ICON e
The Honda ICON e, designed for students, is expected to be priced below 30 million VND, excluding the battery. The model will be manufactured at Honda’s motorcycle factory in Vietnam and may also be exported to other countries in the region. While the battery price and monthly rental rate have not been disclosed, HVN assures that they will be “reasonable.”
Honda ICON e at VMS 2024
Honda’s HEAD dealers will remain responsible for business operations and after-sales service for their electric motorcycles. In the first phase, only 76 HEAD dealers across seven provinces and cities will distribute and sell the ICON e. These dealers will also function as battery exchange stations when needed.
Honda commits to buying back used vehicles after three years if they meet specific criteria for maintenance, appearance, and performance, with the repurchase price determined at the time of the transaction. HVN will refurbish these vehicles and resell them to customers who prefer pre-owned options.
Honda CUV e
The Honda CUV e is a stylish, convenient, and comfortable electric vehicle designed for urban use. It features two removable lithium-ion batteries, offering an impressive 81 km range when fully charged. The electric motor delivers a rated output of 4.2 kW and a maximum output of 6.0 kW. Drivers can choose from three driving modes: Standard, Sport, and ECON, to suit their preferences and driving conditions.
Honda CUV e at VMS 2024
Additionally, the CUV e is equipped with a convenient reverse mode, making it easier to maneuver in tight spaces. The vehicle also features Honda RoadSync Duo technology, enabling users to make and receive phone calls, navigate, and access various other exciting features via Bluetooth connectivity between the car and their smartphone.
The Honda CUV e is imported from Thailand and will not be commercially available for purchase. Instead, it will be offered for rent starting in April 2025. Honda plans to make a limited number of CUV e vehicles available for rent at 18 designated HEAD dealers in Hanoi and Ho Chi Minh City. The company has not yet disclosed the rental policy or rates.
Electrification Plan for Automobiles
In the automotive sector, Mr. Koji Sugita, General Director of Honda Vietnam, shared that the company believes hybrid vehicles are a practical and effective solution to achieve carbon neutrality by 2050.
From 2023 to 2030, Honda aims for a global ratio of 30% for EV/FCEV (electric/fuel cell electric vehicles). During this phase, internal combustion engines will remain dominant. By 2030-2040, the goal is to reach a 100% ratio of EV/FCEV, ultimately achieving carbon neutrality by 2050.
Honda Civic hybrid at Vietnam Auto Expo 2024
Mr. Sugita expressed confidence in hybrid vehicles but did not emphasize sales targets for this segment at present. He attributed this to the higher cost of hybrid vehicles compared to traditional gasoline-powered cars and the lack of government incentives for hybrids, unlike electric vehicles.
If hybrid vehicle sales reach a substantial volume, meet investment requirements, and receive tax incentives from the government, HVN will consider producing hybrid models in Vietnam. Currently, Honda Vietnam has no plans to introduce electric cars to the Vietnamese market.
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