Key Facts
• July 2025: Vietnam announces ban on fossil fuel motorcycles in Hanoi by July 2026.
• Honda holds 80% market share in Vietnam, selling 2.14 million units in 2024.
• August-September 2025: Honda’s sales drop over 10% year-on-year; November sees a 5.6% decline.
• VinFast, an emerging EV maker, increases electric motorcycle shipments sixfold to 235,000 units (Jan-Sep 2025).
• VinFast offers over 10 models, starting at approximately $680, gaining consumer support.
• Vietnam’s motorcycle market is Southeast Asia’s second largest, with 2.65 million units sold in 2024.
• Honda plans to expand its electric motorcycle lineup to compete with VinFast.
• Vietnam’s government supports electric vehicle adoption, citing air pollution concerns.
• Japanese Embassy requests Vietnam to reconsider rapid electrification; no response yet.
Summary
Vietnam’s government is accelerating the adoption of electric motorcycles, aiming to ban fossil fuel-powered motorcycles in Hanoi’s central areas by July 2026. This policy impacts Honda, which dominates 80% of Vietnam’s motorcycle market but relies heavily on gasoline models. Honda’s sales have already declined, while local EV manufacturer VinFast has seen a sixfold increase in shipments, offering affordable models starting at $680. Vietnam’s motorcycle market, the second largest in Southeast Asia, is undergoing a significant shift as the government prioritizes air pollution reduction. Honda plans to expand its electric lineup to counter VinFast’s growth, but the rapid transition poses challenges for the company and its local suppliers. Japan has urged Vietnam to reconsider the pace of electrification, but no official response has been received.
