Domestic motorcycle market sees poor demand before Tết
Manufacturers are engaging in price competition, and dealers are proactively reducing prices on various motorcycle models, ranging from a few million to tens of millions of Vietnamese đồng, depending on the model.
Domestic motorcycle market near Tết (Lunar New Year) holiday has experienced an unusual phenomenon where instead of increasing prices, dealers are simultaneously reducing prices to stimulate demand. However, despite these price reductions, uptake in the market remains weak.
Industry insiders have forecasted that in 2024, due to the overall difficulties in the economy, motorcycle sales may either remain equal to the previous year or continue to decline compared to 2023. In response to the declining sales, both motorbike manufacturers and dealers are employing strategies to lower prices and attract buyers.
Manufacturers are engaging in price competition, and dealers are proactively reducing prices on various motorcycle models, ranging from a few million to tens of millions of Vietnamese đồng, depending on the model. This is done to reduce the inventory and storage of vehicles.
For example, a Honda dealer in Hà Nội has significantly reduced prices on the popular Vision scooter model. The standard Honda Vision is being offered for around VNĐ31 million, the special edition for VNĐ35 million, and the sports version for VNĐ37 million. These prices represent a decrease of VNĐ2.5-3.5 million compared to the previous month.
Despite these efforts to stimulate demand through promotional programmes and price adjustments, Honda dealers and other agents have reported that the number of customers has not increased compared to previous years before the pandemic.
The data shows that total sales in 2023 reached 2,516,212 vehicles, representing a 16.21 per cent decrease compared to the previous year. Honda Vietnam's sales alone accounted for 2,088,557 vehicles, reflecting a 13.3 per cent decline compared to 2022. Despite the decrease in sales, Honda Vietnam still holds a significant market share of 83 per cent within VAMM and has even increased its market share by 2.8 per cent compared to the previous year.
Sales to decline
In this context, motorbike sales in 2024 are expected to either remain stagnant or continue to decrease compared to 2023. To attract buyers, car manufacturers will need to adjust prices, continuously improve their offerings, and introduce new car models with reasonable prices. The competition between brands and between gasoline and electric motorbikes will further drive the need for price adjustments and continuous innovation.
To stimulate sales, manufacturers may implement support programmes, discounts and instalment incentives. Competing on price and service quality will play a crucial role in retaining customers amid declining market purchasing power.
However, industry experts note that car manufacturers may face challenges in attracting consumers due to a lack of completely new or breakthrough models. Many offerings may be limited to mid-life cycle improvements or upgrades that do not significantly attract consumers.
The Vietnamese motorbike market is considered to be in a saturated phase, and the difficult economic situation following the COVID-19 pandemic has led consumers to tighten spending. The trend of electrification is also impacting the market dynamics, with consumers shifting from gasoline to electric motorbikes.
The availability of new electric models with faster battery charging, longer travel ranges, and reasonable prices has significantly influenced the market share competition between gasoline and electric motorbikes, thereby affecting the purchasing power of traditional motorbikes. — VNS
