E-bike industry braces for transformation
In response to the government's planned ban on petrol-powered motorbikes in central Hanoi, set to take effect from July 2026, major motorbike manufacturers in Vietnam are focusing on expanding affordable and diverse electric models.
Leading the charge is VinFast, a Vingroup subsidiary, with a market share of about 32%. Pega and Yadea follow closely, while startups like Dat Bike are rapidly growing and investing in infrastructure, such as charging and battery swap stations, primarily in major cities like Hanoi and Ho Chi Minh City.
Product diversification across price ranges is a key trend, with manufacturers offering a spectrum from budget models under $770 targeting students and short-distance commuters, to high-performance premium electric bikes.
Infrastructure development is another crucial aspect. VinFast invests heavily in nationwide charging stations, while Dat Bike and Selex Motors develop battery swap networks to address charging convenience, a significant barrier to adoption.
Established petrol bike makers like Honda and Yamaha are beginning to enter the e-bike segment, challenged by infrastructure gaps and the rapid regulatory timeline.
The looming ban on petrol motorbikes in inner Hanoi is accelerating demand, intensifying competition, and forcing manufacturers to scale affordable electric options to avoid market exclusion.
However, challenges remain, such as limited charging infrastructure, the need for a wider range of products to meet diverse consumer needs, and the absence of government incentives for electric motorbikes, unlike electric cars, which affects purchase decisions.
Manufacturers are responding by investing in infrastructure, expanding model portfolios, and innovating battery solutions to improve convenience and affordability in Vietnam’s rapidly evolving e-bike market.
Honda Motor, for instance, is planning to launch 13 new hybrid electric vehicles (HEVs) by 2027 and aims to reduce hybrid system costs by half compared to 2018 levels.
In addition, several major motorbike producers, including Honda, are preparing their own support packages for the transition from petrol motorbikes, such as old bike buy-back schemes, discounts on EV purchases, and after-sales services.
Honda offers a subscription model for the ICON e:'s battery at $14 a month with unlimited mileage.
Electric motorbikes in Vietnam have yet to win over the majority of consumers due to concerns over price, battery lifespan, and charging infrastructure. However, with manufacturers' continued efforts to address these issues, it seems that the future of motorbiking in Vietnam is gradually becoming greener.
References:
- Nikkei Asia
- Vietnam Insider
- Reuters
- Bloomberg
In light of the planned ban on petrol-powered motorbikes in central Hanoi, major manufacturers like Honda are now focusing on expanding their electric vehicle portfolio, as seen in Honda Motor's plan to launch 13 new hybrid electric vehicles (HEVs) by 2027. This shift in lifestyle towards electric-vehicles is also driving technology innovations, such as Honda offering a subscription model for the ICON e:'s battery at $14 a month with unlimited mileage, aimed at improving affordability and convenience in Vietnam's rapidly evolving electric motorbike market.
