Motorbike sales in Vietnam down 10%
A saturated market and general tightening of belts again drove motorbike sales down, forcing leading brands to sell at below cost in 2013, Thanh Nien News reported. Industry insiders said the market has been gloomy despite various promotions and discounts even during peak sales seasons like the New Year and the start of new school year, pushing sales down to 2.79 million motorbikes in 2013, down 10 per cent year-on-year. Sales had fallen by 6.6 percent in 2012.
A report from the General Department of Customs showed that the number of motorbikes imported fell by half to 18,866 units and by 40 per cent in value to less than $42.3 million. Major foreign companies like Honda, Yamaha, SYM, Suzuki, and Piaggio have a total capacity of more than five million units a year in Vietnam, besides which some Vietnamese companies too manufacture motorbikes.
Kiyokazu Sasabe, deputy general director of Honda Vietnam, was quoted as saying by the Saigon Times newspaper that his company’s two factories in the northern province of Vinh Phuc had to lay off 500 employees last year as did its competitors. The companies say profits, if any, now come from repairs, replacements, and sale of parts. Many shops selling imported motorbikes in Ho Chi Minh City have closed down.
They said the economic situation is the major factor when people decide to buy a motorbike, but admitted the market has almost reached saturation point. The less important players have been developing niche markets to avoid competition.
Suzuki, Yamaha, and SYM last year launched many sports and below-50-cc models, segments ignored by Honda, which dominates the market with a more than 60 percent share. They also offer smaller, cheaper models for students and housewives, and fuel-efficient vehicles.
Insiders said 2014 is likely to be another difficult year with competition being harsher than ever.
A saturated market and general tightening of belts again drove motorbike sales down, forcing leading brands to sell at below cost in 2013, Thanh Nien News reported. Industry insiders said the market has been gloomy despite various promotions and discounts even during peak sales seasons like the New Year and the start of new school year, pushing sales down to 2.79 million motorbikes in 2013, down 10 per cent year-on-year. Sales had fallen by 6.6 percent in 2012. A report from the General Department of Customs showed that the number of motorbikes imported fell by half to 18,866 units and by 40...
A saturated market and general tightening of belts again drove motorbike sales down, forcing leading brands to sell at below cost in 2013, Thanh Nien News reported. Industry insiders said the market has been gloomy despite various promotions and discounts even during peak sales seasons like the New Year and the start of new school year, pushing sales down to 2.79 million motorbikes in 2013, down 10 per cent year-on-year. Sales had fallen by 6.6 percent in 2012.
A report from the General Department of Customs showed that the number of motorbikes imported fell by half to 18,866 units and by 40 per cent in value to less than $42.3 million. Major foreign companies like Honda, Yamaha, SYM, Suzuki, and Piaggio have a total capacity of more than five million units a year in Vietnam, besides which some Vietnamese companies too manufacture motorbikes.
Kiyokazu Sasabe, deputy general director of Honda Vietnam, was quoted as saying by the Saigon Times newspaper that his company’s two factories in the northern province of Vinh Phuc had to lay off 500 employees last year as did its competitors. The companies say profits, if any, now come from repairs, replacements, and sale of parts. Many shops selling imported motorbikes in Ho Chi Minh City have closed down.
They said the economic situation is the major factor when people decide to buy a motorbike, but admitted the market has almost reached saturation point. The less important players have been developing niche markets to avoid competition.
Suzuki, Yamaha, and SYM last year launched many sports and below-50-cc models, segments ignored by Honda, which dominates the market with a more than 60 percent share. They also offer smaller, cheaper models for students and housewives, and fuel-efficient vehicles.
Insiders said 2014 is likely to be another difficult year with competition being harsher than ever.
