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EV Motorcycle Market Rapidly Expanding
According to statistics from the Vietnam Association of Motorcycle Manufacturers (VAMM) and other motorcycle data, gasoline motorcycle sales are slowing while electric two-wheelers are expanding rapidly. In the third quarter of 2025, the five VAMM member companies (Honda, Yamaha, Piaggio, Suzuki, and SYM) sold a total of 620,000 units, which is a 9.37% decrease compared to the same period last year. Cumulative sales from January to September remained nearly flat compared to 2024, totaling 1.91 million units.
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J-ENG Launches Marine Engine Fueled by Ammonia
Akihiro Komuro Japan Engine Corporation (J-ENG) has announced the completion of its first full-scale ammonia-fueled engine. The engine is due to be shipped to Japan Marine United (JMU)’s Ariake Works for installation on an ammonia-fueled ammonia carrier (AFMGC) which is currently under construction at the facility. The vessel is scheduled to enter service in November 2026.
Source: Kaiji Press Online
PSR Analysis: J-ENG’s first domestically produced ammonia fuel engine is a significant milestone as Japan strives to lead the way in marine decarbonization technology. Ammonia emits no CO₂ during combustion, making it a strong candidate for alternative fuels under the stricter IMO GHG regulations.
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China’s LiuGong To Invest in Factory in West Java
INDONESIA REPORT
Akihiro Komuro In October 2025, LiuGong Indonesia, the Indonesian subsidiary of the Chinese construction machinery manufacturer LiuGong, signed a memorandum of understanding regarding its investment plan for an industrial zone. The new factory in Karawang, which is expected to begin operations in 2026, will have an annual production capacity of 5,000 units and will require a total investment of $317 million. The factory will incorporate AGVs, MES and a dedicated R&D center for electric construction machinery, advancing the adoption of advanced technologies.
Through partnerships with local suppliers, the company aims to increase its TKDN (local content requirement) and achieve certification within five years. Products will be exported to the domestic market, as well as to Southeast Asia, Australia and North America, with an expected annual foreign exchange earnings effect of $40 million. LiuGong views this investment as a contribution to strengthening Indonesia’s heavy equipment industry ecosystem and supporting sustainable development.
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Kawasaki Launches Hybrid Hydrogen Engine
JAPAN REPORT
Kawasaki Heavy Industries has launched a generator engine that runs on a mixture of natural gas and hydrogen. It can operate using a hydrogen blend of up to 30% by volume relative to natural gas. This is the world’s first product of its kind to be launched.
The newly launched 'Hydrogen-Blended Gas Engine' is based on existing natural gas-fueled power generation engines. Due to the explosion risk posed by hydrogen, it is equipped with safety devices and mechanisms to remove residual hydrogen…
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Sharing of EV Battery Data Supported by METI
Akihiro Komuro The Ministry of Economy, Trade and Industry says it will support the development of an industry-wide system for sharing information on the degradation status of EV batteries. Toyota and Honda will provide battery-related data to used car dealers, insurance companies and others. The aim is to prevent the export of used EVs overseas and enable the domestic utilization of batteries containing critical minerals.
Currently, battery degradation is difficult to assess, resulting in low trade-in prices for used EVs in the domestic market. The fact that approximately 80% were exported overseas was a cause for concern.
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Vietnam Shifts To EV Motorcycles
Akihiro Komuro Vietnam, a country known for its large number of motorcycles, is experiencing controversy over its electric vehicle policy. The policy bans gasoline-powered motorcycles in certain areas of Hanoi, the capital, and has caused a stir. Honda, which holds an 80% share of the local motorcycle market, must rethink its strategy because most of its models run on gasoline. This sudden policy change could also disrupt daily life for residents.
In July, the Vietnamese government outlined bold measures to regulate gasoline-powered motorcycles in “Prime Ministerial Directive No. 20.” Starting in July 2026, operating gasoline-powered motorcycles within the Inner Ring Road in Hanoi will be banned. The Inner Ring Road spans over seven kilometers and includes the city center, home to government offices, the Japanese embassy, and the historic Old Quarter, a popular tourist destination.
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