More and more motorbike manufacturers have come to Vietnam. More andmore motorbike models have been marketed. However, many products havebeen unsold, while the market is believed to be reaching a saturationpoint.
According to a report published by the English languagenews website VietNamNet Bridge on April 15, motorbike dealers arecomplaining that they incurred big losses in 2013, and cannot see anyimprovement in 2014.
A senior executive of Savico, a generalservice company, said while the automobile market witnessed a strongrecovery in 2013, with a growth rate of over 20 percent, the motorbikemarket experienced a very tough year.
Due to a sharp drop indemand, the number of motorbikes sold at the Savico chain dropped by 21percent in 2013, while sales and services decreased by 15 percent.
Analystssaid sales have been going very slowly since the beginning of the year.Many sales agents have had to shut down their businesses, while some ofthem have “disappeared” to hide from creditors.
A Honda salesagent in Thanh Xuan district in Hanoi revealed that previously, he couldsell over 300 motorbikes a month. That figure has dropped by 2/3 inrecent months, causing him a loss of 200 million VND a month.
Thesales agents that distribute Yamaha’s, Suzuki’s, and SYM’s productshave voiced the same complaint. A dealer in Hanoi said he has sold only30 bikes since March, though he keeps his shop open from 7.30 am to 8pm.
Motorbike manufacturers, though remaining more optimisticthan the sales agents, admitted that they are experiencing difficultdays. This explains why they are not opening more sales outlets, and infact are trying to shut down some existing showrooms to cut down onexpenses.
Though sales have been going slowly, motorbikesmanufacturers still keep busy. Many new motorbike models were launchedin the first months of 2014.
Piaggio Vietnam has introducedLiberty Restyling 2014 model, targeting high income earners. The modelhas been advertised as “having new features but sold with the oldprice.” The pricing policy of the manufacturer aims to attract morecustomers.
The manufacturer has revealed that it plans to launch another scooter model in April which will offer more choices to customers.
SYMearlier this year launched Attila Elizabeth Smart Idle, Honda Vietnamintroduced the PCX 2014, while Lambretta is marketing the Lamsport formen.
According to Costantino Sambuy, CEO of Piaggio Vietnam, themotorbike market in Vietnam is growing by 8 percent annually. It isbelieved that the demand for scooters will increase further in thefuture, as per capita income increases to 2,600 USD per annum by 2017.
Thisexplains why manufacturers still continue pouring more money to Vietnamto expand their factories. Honda Vietnam, for example, after completingconstruction of its third factory, has put into operation a pistonworkshop worth 230 billion VND.
Vietnam is now the fourth largestmotorbike market in Asia, after China, India and Indonesia. It isgradually replacing Thailand as the motorbike production base of theworld’s motorbike manufacturers.-VNA
According to a report published by the English languagenews website VietNamNet Bridge on April 15, motorbike dealers arecomplaining that they incurred big losses in 2013, and cannot see anyimprovement in 2014.
A senior executive of Savico, a generalservice company, said while the automobile market witnessed a strongrecovery in 2013, with a growth rate of over 20 percent, the motorbikemarket experienced a very tough year.
Due to a sharp drop indemand, the number of motorbikes sold at the Savico chain dropped by 21percent in 2013, while sales and services decreased by 15 percent.
Analystssaid sales have been going very slowly since the beginning of the year.Many sales agents have had to shut down their businesses, while some ofthem have “disappeared” to hide from creditors.
A Honda salesagent in Thanh Xuan district in Hanoi revealed that previously, he couldsell over 300 motorbikes a month. That figure has dropped by 2/3 inrecent months, causing him a loss of 200 million VND a month.
Thesales agents that distribute Yamaha’s, Suzuki’s, and SYM’s productshave voiced the same complaint. A dealer in Hanoi said he has sold only30 bikes since March, though he keeps his shop open from 7.30 am to 8pm.
Motorbike manufacturers, though remaining more optimisticthan the sales agents, admitted that they are experiencing difficultdays. This explains why they are not opening more sales outlets, and infact are trying to shut down some existing showrooms to cut down onexpenses.
Though sales have been going slowly, motorbikesmanufacturers still keep busy. Many new motorbike models were launchedin the first months of 2014.
Piaggio Vietnam has introducedLiberty Restyling 2014 model, targeting high income earners. The modelhas been advertised as “having new features but sold with the oldprice.” The pricing policy of the manufacturer aims to attract morecustomers.
The manufacturer has revealed that it plans to launch another scooter model in April which will offer more choices to customers.
SYMearlier this year launched Attila Elizabeth Smart Idle, Honda Vietnamintroduced the PCX 2014, while Lambretta is marketing the Lamsport formen.
According to Costantino Sambuy, CEO of Piaggio Vietnam, themotorbike market in Vietnam is growing by 8 percent annually. It isbelieved that the demand for scooters will increase further in thefuture, as per capita income increases to 2,600 USD per annum by 2017.
Thisexplains why manufacturers still continue pouring more money to Vietnamto expand their factories. Honda Vietnam, for example, after completingconstruction of its third factory, has put into operation a pistonworkshop worth 230 billion VND.
Vietnam is now the fourth largestmotorbike market in Asia, after China, India and Indonesia. It isgradually replacing Thailand as the motorbike production base of theworld’s motorbike manufacturers.-VNA
