The world’s largest manufacturer of motorcycles is also producing electric models but it is not clear how many it sells in the country
[HANOI] Honda’s dominance of Vietnam’s motorcycle market is under threat as Hanoi pushes for a rapid switch to electric vehicles (EVs) in a boost to local EV maker VinFast, according to industry data and the findings of a consumer survey.
Vietnam’s Prime Minister Pham Minh Chinh issued a directive in July that bans after 12 months fossil-fuel-powered motorcycles from the centre of the capital Hanoi and extends the scope of the ban from 2028.
Honda and other motorcycle makers have written to authorities criticising the changes as being too fast, according to two sources with direct knowledge of the matter.
The Japanese company’s sales in Vietnam fell by nearly 22 per cent in August from July, a 13 per cent drop on the year, after the government’s ban was announced, industry data showed.
Partly in response to the government’s policies, residents of Hanoi and Ho Chi Minh City, Vietnam’s two largest cities, plan to choose an electric model for their next motorcycle purchase, according to a survey conducted in September by market research firm Asia Plus.
Representatives for Honda in Vietnam did not reply to requests for comment.
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The Vietnamese ministry responsible for transport did not reply to a request for comment but the government has said that the new measures were needed to address air pollution in Hanoi, which at times tops the list of the world’s most polluted cities.
Lion’s share of the market
Vietnam’s two-wheeler market stands at US$4.6 billion in 2025 and is projected to reach US$6 billion by 2030, according to market research firm Mordor Intelligence.
Petrol motorcycles dominate Vietnam’s market, one of the world’s largest. Honda sold 2.6 million vehicles in the country last year, more than 80 per cent of the total. VinFast said that it delivered 71,000 electric motorcycles.
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Honda, the world’s largest manufacturer of motorcycles, is also producing electric models but it is not clear how many it sells in Vietnam.
Of the 200 people polled in the survey, 54 per cent said that they would choose an electric motorcycle for their next purchase, and only 24 per cent would opt for a petrol model. The main reason given for preferring an electric option was the government’s policies to endorse EVs.
In Hanoi, the share of interviewees saying they would choose an electric motorcycle was 60 per cent.
Half of the poll respondents said that they would consider buying a Honda motorcycle, and 32 per cent said they would opt for a VinFast model. More than 80 per cent said they already owned a Honda vehicle, and 4 per cent said they had a VinFast motorcycle.
“The rapid policy support, including phased bans, incentives, and public messaging, has significantly shaped consumer attitudes and could accelerate a market shift faster than traditional manufacturers anticipated,” said Kengo Kurokawa, the head of Asia Plus. REUTERS
