In the world where traditional motorbikes are losing their place to newly developed electronic vehicles, Vietnam-based manufacturers are forced to compete more violently to earn and retain customers.
The degradation of traditional motorbike market
According to reports from VAMM, total sales of all members reached 3,254,964 units in 2019. Although the market had its 4th consecutive year of over 3 million units sold, the gradual slip is remarkable when numbers had gone down by 3.87% compared to 2018.
After numerous years of rocketing growth rate, traditional motorbikes in 2019 for the first time ever witnessed a sales drop after its peak in 2018 at nearly 3.4 million units; it is worth mentioning that sales from 2019 was even lower than that of 2017.
It is plausible to say that the golden age of internal combustion engine models is starting to hit a plateau, which can be supported by the idea of more diverse demands for means of transports. In addition, speculations are seemingly in favor of a heavier drop in 2020 due to Covid-19.
The rising popularity of electronic motorbikes
Meanwhile, 2019 proved to be a fruitful year for electronic motorbike models in Vietnam. One by one, brands started equipping themselves with their own e-motorbikes, name ly the likes of Pega, Mbigo or Yadea in addition to Vinfast with their already famous Klara introduced in 2018.
The diverse and potential market of electronic transportations soon caught the eye of manufactures. In a recent statement, Director of Piaggio Vietnam – Gianluca Fiume – revealed that the brand also planned to bring their electronic Vespa models to Vietnamese markets.
However, in order to compete against the long-established position of combustion engines, the release of multiple brand-new models proves insufficient. Companies would have to improve the already high costs, especially those that employ lithium-ion batteries. Furthermore, it is necessary to alter customers psychology in such a way that it would benefit sales when the general concerns are still emphasised on convenience and simplicity. Since the beginning, electronic cars or motorbikes had had to receive an 8-12-hour charge in order to be operable.
Who will face the most difficulties?
As the old market has reached its summit, and electronic models posing serious threats to their monopoly, VAMM members will have to win back customers more determinedly in 2020.
Recently, Yamaha Vietnam has introduced a new campaign for the year named “New me, Discover” with multiple new activities: Yamaha Motor Expo, Yamaha Grande Fashion Show, Yamaha Festa… Mr. Yano Takeshi – Yamaha Motor Vietnam’s President – informed: Total sales of Yamaha models in the world was registered to be over 10 million units. At the moment, Vietnam is the 4th largest market for the company worldwide, after India, China and Indonesia.” The brand will carry on releasing new products for consumers in 2020m with 2 models aimed for male consumers and 1 for all consumer categories.