Luxury scooters the future of Vietnam’s motorbike market

Luxury scooters are now the focus of motorbike manufacturers in Vietnam. High-end scooters, priced at VND50 million and higher, unexpectedly sold very well in 2016.



However, analysts commented that 200,000 these products sold was still small compared with the total 3 million scooters of different kinds bought.

It is expected that the high-end scooter market would see a 30 percent growth rate in 2017.

Vietnamese income per capita is expected to increase to $2.600 per annum, which would lead to the higher demand for luxury motorbikes.

Meanwhile, the demand would also be high from those who bought motorbikes 4-5 years ago. Many of them want to replace their common motorbikes with luxury scooters.

There are not many choices for consumers in the high-end scooter market. Only two foreign brands – Piaggio and Honda – dominate the market segment.

Honda Vietnam has launched SH 2017 model with big improvements compared with the old version.

A representative of Honda Vietnam said since it began making SH scooters in 2009, more than 300,000 products have sold. The figure is hoped to rise to 100,000 a year for the new product.

Piaggio Vietnam has also geared up for the race, reviving Vespa LX the model it stopped manufacturing three years ago. The model was favored by women because of good appearance and style. Vespa LX has been upgraded.

An analyst commented that many consumers now want luxury products made with modern technologies that are more personalized.

He went on to say that manufacturers will have to pay higher attention to personalizing their products because high income earners don’t want to use products which are common in society, but want products with special characteristics.

Therefore, there would be products with many different colors, while there would be many products and models to satisfy consumers’ different tastes

Honda and Piaggio will not be the only big players in the market. Sources said some famous motorbike brands are trying to penetrate the Vietnamese market and will only conquer the high-end market segment.

A report of the Vietnam Association of Motorbike Manufacturers (VAMM) showed that 55 percent of products bought in 2016 were scooters. The figure is expected to rise to 60 percent in 2017. Scooters are not only bought in large cities, but in rural areas as well.

In related news, the Hanoi authorities are trying to recall 2.5 million old motorbikes which discharge harmful substances to the environment.

Tran Thuy / vietnamnet