VietNamNet Bridge - The demand for high-cylinder capacity motorcycles has risen with the rapid growth of the middle class. 

More than 45 million motorbikes in circulation have driven the regular motorbike market towards saturation. That is why the world’s largest motorcycle manufacturers, one after another, have arrived in Vietnam, which has the second-largest number of motorbike users in South East Asia.

In the past, high-cylinder capacity motorcycles were distributed by private importers and dealers. Meanwhile, manufacturers have recently set up authorized dealers in Vietnam. 

After Ducati opened an official showroom in 2009, other manufacturers also introduced their representatives in Vietnam.

Sapa, a trade company, has recently been appointed as the sale agent for KTM products. It is also the distributor of Piaggio scooters in Vietnam. 

Sources earlier this year said the company was considering importing motorcycles from Italy, but it has recently announced it has become the sales agent of products from Austria.

KTM has been present in Vietnam since 2013 through Cuong Uy, an importer. However, the importer last year decided to focus on Kawasaki products from Japan.

The demand for high-cylinder capacity motorcycles has risen with the rapid growth of the middle class.

The two US brands – Indian Motorcycle and Victory Motorcycles – also set up their showrooms in April. With the price of VND600 million, these are two well- known brands in the US, together with Harley-Davidson.

In July 2015, Harley-Davidson opened its authorized seller in Hanoi, the largest one in South East Asia. The US manufacturer plans to open its third agent in the third quarter of the year, in Da Nang City.

Piaggio has brought two well-known brands to Vietnam – Moto Guzzi and Aprilia - with 8 new models.

In early 2015, Honda mentioned the possibility of importing motorcycles under the mode of completely built unit (CBU), while Yamaha has begun importing motorcycles with cylinder capacity of less than 175cc. 

Julian Legazpi, CEO of KTM Sportmotorcycle South East Asia, commented that the Vietnamese high-cylinder capacity motorcycle market has potential with the modest motorcycle ownership ratio of 0.05 percent, lower than the average ratio in the region of 10 percent.

Jacky Chen, South East Asia director of Benelli, believes that it is a niche market, while the common motorbike market has become saturated.

Analysts said that the motorcycle market has been given a push by the new decision allowing to grant A2 driving licenses to people who drive 175cc motorcycles. In the past, the number of such licenses granted was very limited.

Since the decision was released, the number of registered high-cylinder motorcycles has increased rapidly. About 29,000 motorcycles had been registered as of April 2015.