In 2025, the Vietnamese motorcycle market experienced strong growth, with sales increasing by 14.9% year-on-year to approximately 3.4 million units. This made it the second-largest market in Southeast Asia, after Indonesia. Indonesia maintained its top position as the region’s largest market with 6.55 million units sold, though its growth rate was limited to 0.6%. Meanwhile, the Philippines recorded 2.37 million units (+2.8% year-over-year), Thailand recorded 1.73 million units (+9.8% year-over-year), and Malaysia recorded 613,893 units (+3.5% year-over-year).
In Vietnam, the rapid expansion of electric motorcycles is reshaping the market structure. Alongside domestic companies, Chinese firms are accelerating investment in electric motorcycles, aided by stricter environmental regulations. Hanoi’s plan to restrict internal combustion engine vehicles starting in mid-2026 is further accelerating the shift towards electric vehicles.
Amid intensifying competition, dedicated electric vehicle manufacturers are pressuring established giants. Honda, the previous market leader, experienced a modest 4.6% year-on-year increase in sales volume to 2,245,562 units, maintaining a 66.0% market share.
Meanwhile, VinFast, which is primarily focused on real estate development, experienced explosive growth. Its sales surged fivefold to 406,453 units, capturing a 12% market share and rising to second place. Other electric motorcycle manufacturers also demonstrated strong growth: Taiwan-based Dibao increased sales by 75.0%, China-based Yadea by 61.6%, and local Pega by 60.0%.
Source: VietJo Read The Article
PSR Analysis: This news suggests that Vietnam’s motorcycle market is transitioning from a phase of mere volume recovery to one of structural transformation. The sales growth of approximately 3.4 million units, which is a 14.9% year-on-year increase, cannot be fully explained by economic recovery factors alone. The expansion of electric motorcycles is likely driving the market upward. In urban areas, overlapping factors such as environmental regulations, fuel prices, and the digital orientation of younger generations are establishing EV models as the new standard.
The entry of Chinese manufacturers intensifies price competition and strengthens their influence over upstream supply chains, such as battery procurement and power electronics. This puts pressure on Japanese and local giants, who have traditionally dominated the gasoline-powered vehicle market. However, Japanese brands still have advantages in sales networks, after-sales service, and brand trust, which limits the potential for rapid short-term shifts in market share.
The focus is shifting from “volume” to “leadership in added value.” As electrification advances, competition will shift from engine performance to battery lifespan, software control, and connectivity. If EVs become mainstream in the Vietnamese market, the country could position itself as a test market for electric motorcycles within the SE Asia. This growth should be viewed less as cyclical recovery and more as an approaching inflection point in the industrial structure. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast, for Power Systems Research
