Honda Vietnam, a subsidiary of Japan’s Honda Motor Company, sold more than 2.56 million motorcycles and scooters, securing a market share of nearly 76% in Vietnam last year, backed by a year-on-year increase of 6% in sales, according to its business performance results released on January 19.

New models of Honda motorbikes on display

The result indicated that the local motorcycle market still has potential for growth. Previous predictions were proven wrong when they forecast the market had reached saturation or would follow a downward trend.

In 2012, over 3.11 million motorcycles and scooters were sold in the country, down some 6.6% from a year earlier. The downward trend continued in 2013, with some 2.79 million vehicles sold.

Two years later, the market witnessed signs of recovery, consuming over 2.84 million vehicles and marking a 4% rise against 2014.

In 2016, the Vietnam Association of Motorcycle Manufacturers, whose members comprise Honda Vietnam, Piaggio Vietnam of Italy, Suzuki Vietnam and Yamaha Vietnam of Japan, as well as SYM Vietnam of Taiwan, sold more than 3.1 million two-wheeled vehicles, up 9.5% year-on-year. The respective figures for 2017 were 3.2 million and 4.8%.

Thanks to its strong sales performance in 2018, Honda held a larger two-wheeled vehicle market share of nearly 76%, a 4.2% rise against 2017. As such, the remaining market share of some 24% belonged to other producers.

Honda Vietnam ascribed its high growth to the fact that it had rolled out 23 new vehicle models and versions, featuring advanced technology.

Further, the producer also launched more than 30 Honda executive authorized dealers, taking the total to 788 nationwide.

Honda Vietnam also boosted its exports. Last year, it shipped more than 144,000 completely built-up (CBU) units and earned total revenue of US$361 million, including shipments of CBUs and their accessories, up over 6.7% year-on-year.

Honda posted impressive growth in the automobile sector as well, with roughly 27,100 units sold, rising a whopping 119% against the year-ago period.

As the firm was one of the first automobile importers to overcome the barrier of the Government’s Decree 116 on automobile manufacture, assembly, import, maintenance and warranty services, the company achieved success in the imported vehicle segment.

As a result, the firm sold over 10,800 Honda City cars, making up 40% of the company’s total automobile sales, followed by Honda CR-V with over 8,800 units (33%).

SGT