Observers said demand is not high in Hanoi and the prices of many models remain unchanged. Honda Vietnam’s Vision, Lead and SH are being sold at a lower price than the manufacturers’ suggested retail prices (MSRP).

Honda Vision standard version, for example, is selling at VND30.8-31 million, very close to the MSRP. Higher versions, special and sports versions still have quoted prices of VND33 million, VND35 million and VND37 million, respectively, while the classical version is VND37.5 million.

Honda Lead’s market prices offered by dealers are also equal to MSRP. In Hanoi, Honda Lead standard version is priced at VND39.2 million, a slight decrease compared to MSRP. The high-end version is priced at VND41.5 million, while special version is VND43.5 million, VND1 million higher than MSRP.

As for Honda SH, the 125i version prices are VND1-2 million lower, while SH 160i is higher by VND500,000-2 million than MSRP.

Dealers now dare not set high selling prices as they once did (the real prices were always higher than MSRP) as the supply is plentiful and the inventories are high.

Yamaha Vietnam has slashed its selling prices of Janus scooter to attract more buyers. Yamaha Town agents in Hanoi promise financial support of VND4 million to Janus buyers, thus allowing prices to decrease to levels equal to Honda Wave Alpha.

Janus standard version is selling at VND24.3-24.67 million, while limited version is VND28-28.89 million and special version is VND27.5-28.4 million.

The manufacturer has also eased prices of other scooter models, such as Grande (by VND1-1.5 million). The current price is VND43.7 million for Grande standard version, VND48.2 million for special version and VND48.9 million for limited one.

PG-1 has also seen prices drop by VND7-8 million since its debut, now selling at VND29.5 million. PG-1 prices are equal to that of the standard version of Honda Future 125 FI and lower than Exciter 150 and Exciter 155. Dealers also offer preferences in cash, voucher and motorbike parts.

SYM sales agents have also joined the competition by launching a series of 50cc models at extremely attractive prices, the same as MSRP. Shark, for example, is selling at VND24-25 million.

Meanwhile, Elite is offered by dealers at VND23.1 million for standard version and VND23.6 million for special versions, the same as MSRP. Priti which was launched recently, is priced at VND26.7 million, which is believed to be an ideal choice for students in the back-to-school season.

According to the General Statistics Office (GSO), 299,000 motorbikes were churned out in July 2024, the highest output so far this year, and 1,743,200 products were put out in the first seven months of the year, an increase of 3.9 percent over the same period last year.

Meanwhile, only 1.5 million products were sold in the first seven months. The supply is plentiful, if counting the 300,000 products unsold since 2023 and CBU (complete built unit) imports.

With high inventories, manufacturers and sales agents have to pursue a pricing strategy attractive enough to stimulate demand. 

The fact that domestic manufacturers increased their output in July was a surprise for analysts, because the domestic market was still quiet, and demand was predicted to fall in August, or the seventh month of lunar year, called the ‘month of forsaken souls’, when people don’t make important purchases.

According to the Vietnam Association of Motorbike Manufacturers (VAMM), 1,206,872 products were sold in the first six months of the year, down 1.4 percent compared with same period last year.

VAMM consists of five members, namely Honda, Yamaha, SYM, Suzuki and Piaggio. 

Honda manufactures and distributes 27 motorbike models, Yamaha 27, SYM 12, Suzuki 23 and Piaggio 10. The manufacturers not only sell motorbikes in the domestic market but also export products to many countries and territories.

Analysts say that people tend to tighten their purse strings in current difficult conditions, which weakens purchasing power. The motorbike market is also getting saturated and there have not been many new models launched recently, thus not attracting young customers.

The Law on Road Traffic Order and Safety, expected to take effect on January 1, 2025, stipulates that motorbikes must undergo emissions inspections. The new law is expected to have an impact on the motorbike market. Instead of buying a gasoline-run  motorbike, customers may switch to electric motorbikes.

Hoang Hiep