Motorcycle market seen reaching saturation point

21-Apr-2018 Intellasia | The Saigon Times | 6:00 AM Print This Post

The number of motorcycles sold in the first quarter of this year reached some 803,000 units, increasing a mere 1.9 percent against last year, which indicates the domestic market is reaching its saturation point.

Statistics in a report by the Vietnam Association of Motorcycle Manufacturers (VAMM) include sales by five members of the association, namely Honda Vietnam, Piaggio Vietnam, Suzuki Vietnam, SYM Vietnam, and Yamaha Motor Vietnam. The sales excluded the quantity of exported motorbikes as well as those sold by other non-VAMM firms like Kymco, Kawasaki, BMW, KTM, and Benelli, whose combined sales number is small.

The five above-mentioned members of VAMM sell an average of 270,000 motorbikes per month, which meant that people nationwide purchased around 9,000 units a day. Each member firm markets nine to 15 product lines to the market which are diverse and therefore are able to serve a wide range of customers.

Despite a small increase, the results are still deemed encouraging, as experts have pointed out that the market has become saturated.

VAMM refused to release the detailed sales of each of its members, but in recent years, Honda Vietnam has been dominating the market with a market share of 70 percent, with Yamaha Vietnam being the runner-up.

Earlier, VAMM predicted that the motorcycle market in Vietnam had come to a saturation point, as consumption was on the gradual decline over the years. Last year, VAMM members sold some 3.27 million units, increasing by 4.8 percent against the year earlier.

In Vietnam, scooters account for over 45 percent of the total and are expected to be the robust segment in the future as income per capita is increasing. The demand for scooters is increasing in both urban and rural areas.

http://english.thesaigontimes.vn/59390/Motorcycle-market-seen-reaching-saturation-point.html

 


Category: Business, Vietnam

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