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Motorcycle sales have been lackluster in 2023. Photo by Phúc Háºu. |
According to the latest report from the Vietnam Motorcycle Manufacturers Association (VAMM), the five members’ sales in the fourth quarter of 2023 totaled 681,963 units, an increase of 11.68% from the previous quarter but an 18.03% decrease year-on-year.
Market Demand Slowdown
VAMM’s members include Honda Vietnam, Piaggio Vietnam, Vietnam Suzuki, SYM Vietnam, and Yamaha Motor Vietnam. The association’s sales report presents the cumulative sales of these five members in the Vietnamese market, excluding production figures and export volumes.
According to VAMM’s sales report, Vietnamese customers purchased over 2.5 million motorcycles in 2023. Compared to the previous year’s consumption of more than 3 million vehicles, the sales achieved by the five VAMM members in Vietnam showed a 16.21% decline.
Throughout 2023, motorcycle sales in Vietnam consistently lagged 10-20% behind the previous year’s quarterly figures. Notably, in the third quarter of 2023, despite improved sales from the preceding quarter, the overall market volume contracted by nearly 20% compared to the third quarter of 2022.
Vietnamese Reduce Motorcycle Purchases in 2023 | |||||
Vietnam’s Motorcycle Market Sales by Quarter in 2022-2023 (Data Source: VAMM) | |||||
Label | Q1 | Q2 | Q3 | Q4 | |
2022 | Units | 753,571 | 655,433 | 762,154 | 831,999 |
2023 | 634,688 | 588,926 | 610,635 | 681,963 |
The decline in sales is also believed to contribute to a decrease in the productivity of domestic motorcycle assembly lines in Vietnam. According to the General Statistics Office, the total number of motorcycles manufactured in Vietnam in 2023 is estimated to exceed 3.14 million units, a 12.6% drop compared to the previous year.
Manufacturers’ Strategies to Attract Customers
Amid the challenging market conditions in Vietnam’s motorcycle industry, manufacturers have adopted diverse strategies to seek new opportunities or mitigate business risks.
Suzuki, the Japanese brand, significantly streamlined its motorcycle product range in the country starting in mid-2022. Currently, customers interested in Suzuki motorcycles have only four options: the Suzuki Raider, Suzuki Satria, Suzuki V-Strom, and the Suzuki Burgman Street scooter.
Meanwhile, Honda dealers have continuously launched promotional programs and discounts to attract customers. The Honda Vision scooter’s price now ranges from 30.79 million to 36.49 million VND, depending on the variant. In some locations, the Standard version is offered at 29.9 million VND, a discount of 1.2 million VND from the listed price.
Honda dealers are offering the 160cc Honda Air Blade models at 55.59-57.29 million VND, a maximum discount of 1.1 million VND from the listed price.
Yamaha, on the other hand, chose to refresh its customer base with the Yamaha PG-1, a uniquely designed number bike that stands out in the market.
Although targeted at younger customers, Yamaha PG-1’s initial reservations came predominantly from middle-aged buyers. This indicates Yamaha’s successful effort to refresh its customer base, despite ongoing challenges in meeting demand for this new model.
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Yamaha PG-1 Created a Frenzy in Vietnam’s Motorcycle Market in 2023. Photo by VÄ©nh Phúc. |
2023 has been a challenging year for the Vietnamese vehicle market, with both car and two-wheeler sales underperforming compared to the previous year. While many anticipate a recovery in 2024, it is challenging to make precise predictions at this point.
For a significant boost in the motorcycle market, Vietnamese customers may need to see more models like the Yamaha PG-1. Alternatively, more favorable pricing policies from manufacturers and dealers could encourage customers to invest in two-wheeled vehicles.
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