THE LANDSCAPE OF MOTOR TRANSPORTATION IN VIETNAM IS POISED FOR AN EXTRAORDINARY SHIFT.

In a country where motorcycles have long been the quintessential mode of transport, there is a dramatic evolution in consumer preferences. Today's Vietnamese riders are wealthier, more discerning, and increasingly hungry for high-performance, aesthetically pleasing bikes that embody their success.

Motorcycles have long been an integral part of Vietnamese life. From the bustling streets of Hanoi to Ho Chi Minh City to the scenic country roads, the rhythmic hum of motorcycle engines is ubiquitous. Yet, recent market trends indicate an imminent transformation in how the Vietnamese navigate their world. As the nation grows more prosperous, consumers are shifting their focus toward quality, design, and performance.

Motorcycle owners no longer perceive their vehicles simply as a mode of transport; they are symbols of prestige, taste markers, and personality reflections. This shift is propelling Vietnam's motorcycle industry into the high-end segment, and any vanguard company in this sector is perfectly poised to lead this revolution.

The electric revolution is a global trend. While the West has seen a rise in electric car adoption, Asia, specifically Vietnam, is where electric motorcycles can have the most significant impact. Given the country's reliance on two-wheelers, electric motorcycles provide an efficient, green, high-performance alternative.

A NEW WAVE

There is currently an electrification wave already influencing the transportation industry. Several forward-thinking companies have recognized the potential of electric vehicles and are carving their paths in this booming sector.

VinFast, the first Vietnamese automaker, leads the charge in the four-wheeler segment. A subsidiary of Vingroup, one of Vietnam's largest privately-held businesses, VinFast has boldly set its sights on becoming a global electric vehicle powerhouse. Their ambition extends to electric motorcycles, too, with models like the VinFast Klara gaining popularity among eco-conscious consumers.

Another significant player is PEGA, a Hanoi-based startup that launched its line of electric motorcycles. Their flagship PEGA NewTech boasts power and efficiency, with an impressive range of up to 100 kilometers on a single charge.

Another major player is Selex Motors. The company has focused on building a comprehensive ecosystem for intelligent electric motorbikes. The company wants to fundamentally solve the current hindrances of electric vehicles: the inconvenience of charging and the high cost of creating battery swapping stations all over Vietnam.

Then we have MODMO, an Irish-Vietnamese venture, adding an innovative twist to the market with their Saigon+ electric bike. The Saigon+ merges traditional pedal power with an electric motor, offering users the flexibility of both modes.

Also most notable is DAT Bike, Vietnam’s first venture capital-backed e-motorbike startup. DAT Bike's Weaver model is touted as a high-performance motorcycle with a 5,000W motor that outperforms most traditional gas scooters.

While these trailblazers have made significant strides in propelling the electric vehicle market, there is an opportunity aiming to differentiate by focusing on high-end, design-centric electric motorcycles. The idea of fusing power and performance with unparalleled aesthetic appeal to cater to an evolving demographic seeking a ride and a statement is genuinely appealing.

EVOLVING CONSUME TRENDS IN VIETNAM

With a population of over 97 million, Vietnam has one of the most important motorcycle markets in the world. As of 2023, the country's motorcycle density was among the highest globally, with an estimated 50 million units, indicating that nearly one in two Vietnamese owned a motorcycle.

The market's enormity stems from the unique transportation landscape of the country. The densely populated cities with narrow streets and the convenience and affordability of motorcycles make them an ideal choice for personal transportation. Additionally, motorcycles have been embedded in the local culture and lifestyle, from commuting to work to transporting goods.

Honda dominates the conventional (gas-powered) motorcycle market, holding a considerable market share with an extensive range of models catering to various demographics. Other Japanese manufacturers, such as Yamaha and Suzuki, have also established a strong presence.

In terms of electric motorcycles, as previously mentioned, companies like VinFast, PEGA, Selex, MODMO, and DAT Bike have begun carving their niches.

However, the electric motorcycle market, although growing, is still in its nascent stages. As of 2022, electric motorcycles comprised only a fraction of the motorcycle market. Several factors contribute to this, including the initial cost of electric motorcycles, lack of charge, and the convenience and affordability of motorcycles.

That said, the trend toward electric mobility is undeniable and accelerating. Vietnamese consumers are becoming increasingly aware of environmental issues, and the government has signaled a shift towards cleaner transportation alternatives. These factors, combined with advances in battery technology and decreasing costs, suggest a bright future for electric motorcycles.

Furthermore, the evolving consumer trends towards more premium, high-performance bikes open up opportunities for new companies. As the country grows wealthier and consumers are more selective, the demand for high-end, design-centric motorcycles - both conventional and electric - is set to rise.

The transformation of the Vietnamese motorcycle market is inevitable and electric, presenting a ripe opportunity for innovators and disruptors to redefine the future of personal transportation in the country.