Motorcycle market posts negative growth

SGGP
According to the Vietnam Association of Motorcycle Manufacturers, Vietnam’s motorbike market has been showing signs of slowdown as in the first nine months of this year, motorbike manufacturers merely sold more than 2.3 million motorcycles of all kinds, posting negative growth of about 5 percent.

Motorcycle market posts negative growth

It is forecast that the number of motorcycles sold this year will be at 3.1-3.38 million motorcycles, no growth or negative growth.

Statistics showed that growth of motorcycle market declined gradually year by year. After dropping for three consecutive years from 2012 to 2014, growth momentum returned to the level of 4 percent with more than 2.8 million motorcycles sold in 2015. The year of 2016 saw the highest growth of 9.5 percent with 3.1 million motorcycles sold. The number of motorcycles sold in 2017 was 3.27 million motorcycles. In 2018, growth was merely 3.5 percent with 3.38 million motorcycles.

One of the reasons that make the growth of motorcycle market decrease is that the fact that electric motorcycle manufacturers have released more and more new models with longer duration energy storage and lower costs, has been competing with gas-powered motorcycles for market share.

In addition, the tendency to buy cars is increasing heavily, causing the demand for motorcycles to no longer climb. As the demand is falling strongly, motorcycle dealers have to lower prices to lure customers. Currently, on the motorcycle market, several motorcycle manufacturers have offered a discount from VND500,000 to VND9 million per motorcycle, depending on each model.

By Lac Phong – Translated by Thuy Doan

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