KTM and Husqvarna Shut Down Their Showrooms in Vietnam

However, the service workshops will remain operational at their current locations while awaiting transfer to the new distributor.

This announcement puts an end to previous speculations about the potential downsizing of KTM and Husqvarna operations in Vietnam. Al Naboodah, the current distributor, has officially ceased business for these two European motorcycle brands while continuing to distribute Triumph and Harley-Davidson in the domestic market.

Prior to the official announcement, KTM and Husqvarna dealerships had been organizing large-scale clearance sales. Many models were offered with significant discounts, ranging from a few tens to over 100 million VND. Notably, the Husqvarna Svartpilen 401 attracted attention with a discount of 87 million VND, bringing the price down to 119 million VND, which is even lower than that of a large-displacement scooter like the Honda SH350i (starting at 151 million VND).

KTM made its entrance into Vietnam in 2013, just three years after Ducati entered the market. In over a decade of operations, the Austrian motorcycle brand has undergone several distributor changes, with Al Naboodah taking over in 2021. At the same time, Husqvarna, which has been owned by KTM globally since 2013, was also introduced in Vietnam, sharing showrooms with Triumph and Harley-Davidson.

In 2022, KTM and Husqvarna separated from the initial conglomerate and moved to their own business premises in Hanoi. However, despite their highly regarded designs and performance, both brands faced challenges due to retail prices that were perceived as uncompetitive. Meanwhile, Japanese brands like Honda and Yamaha continuously launched new models at more accessible price points, aligning with the preferences of local consumers.

The decision to close KTM and Husqvarna showrooms comes at a time when the large-displacement motorcycle market is experiencing significant fluctuations. Not long ago, Ducati, an Italian brand, also shut down its showroom in Hanoi. However, unlike KTM and Husqvarna, Ducati continues to provide maintenance services and operates in Vietnam through its sole remaining showroom in Ho Chi Minh City.

In contrast to the withdrawal or restructuring trends, Yamaha has made headlines with its largest-ever incentive program. The Japanese manufacturer offers discounts ranging from 60 to 150 million VND on various large-displacement motorcycle models. These incentives are provided in the form of vouchers given to previous Yamaha motorcycle buyers, rather than being publicly available at dealerships. As a result, to avail of the discounted price, purchasers need to find and buy these vouchers from other consumers.

Honda, on the other hand, demonstrates stability and steady growth in the large-displacement motorcycle segment. In late February, the Japanese brand introduced five new models: Rebel 500, CL500, CB1000 Hornet, XL750 Transalp, and CRF1100L Africa Twin. This move showcases Honda’s long-term strategy in Vietnam and reinforces the position of the trusted Japanese motorcycle brand in the market.

With KTM and Husqvarna temporarily exiting the market, the large-displacement motorcycle landscape in Vietnam is witnessing a clear polarization between Japanese brands, with their price advantages and extensive aftersales networks, and European brands facing cost and accessibility challenges. In the coming period, finding a new distributor will be crucial in determining the return or complete withdrawal of KTM and Husqvarna from this highly potential yet challenging market.

TH (Tuoitrethudo)

Images: KTM Vietnam, Husqvarna Motorcycles Vietnam