Motorcycle Market Slumps
According to the Vietnam Association of Motorcycle Manufacturers (VAMM), sales of its five member companies, including Honda, Piaggio, Suzuki, SYM, and Yamaha, reached 603,745 units in the first quarter of 2024. This represents a 4.88% decrease compared to the same period last year and an 11.5% decrease compared to the previous quarter. It is the lowest quarterly sales figure in six years.
Honda Vietnam reported that it held an 82.5% market share in Vietnam in the 2024 fiscal year (as calculated by VAMM), a 1.6% increase over fiscal year 2023. Despite maintaining its leadership position, Honda also experienced a decline in sales compared to the previous fiscal year.
According to Vietnamplus, a comparison of data over the past five years shows that motorcycle sales have been declining. Specifically, sales reached 3.25 million units in 2019, 2.71 million units in 2020, and 2.49 million units in 2021. In 2022, following the pandemic, demand for motorcycles surged, pushing the market to 3 million units sold. However, in 2023, motorcycle sales fell again to 2.51 million units (a 16.21% decrease compared to 2022).
Clearly, the traditional motorcycle market in Vietnam has entered a period of saturation and is experiencing a decline in sales year over year.
Why Are Honda Dealerships Selling at a Premium?
According to Vietnamnet, Honda motorcycle dealerships in Ho Chi Minh City are currently experiencing a decline in customers. Mr. Tran Van H., a salesperson at a dealership in District 11, said, “Currently, the number of buyers has decreased significantly compared to previous years. The motorcycle market is gradually becoming saturated.” However, as reported by journalists a few days prior, Honda motorcycle dealerships are continuing their “tradition” of selling certain popular models, such as the Honda SH, SH Mode, Airblade, and Vision, at a premium.
Photo: Honda
The Honda SH 160 ABS Special Edition is being priced as high as 117 million VND, approximately 15.5 million VND above the listed price.
The Honda Air Blade 160 ABS is being priced at 63 million VND, approximately 6.3 million VND above the listed price of 56.69 million VND, while the Special Edition is being priced at 65 million VND, approximately 7.1 million VND above the listed price of 57.89 million VND, excluding registration fees.
According to Suc Khoe Doi Song, the Honda Super Cub C125 has also been marked up due to a shortage of units in the market as it is an imported model. Many dealerships are reportedly sold out.
Photo: Honda
The practice of dealerships marking up motorcycle prices is not new. In general, popular motorcycle models experience price premiums compared to their listed prices, particularly the Honda SH, which has consistently been sold at a premium of several millions of VND.
Honda Vietnam has stated that the company and its dealerships are separate legal entities and that it cannot intervene in their pricing. “Honda Vietnam only publishes recommended prices, while the actual selling price is determined by the dealership,” said a Honda representative.
According to Nguoi Lao Dong, some dealerships attribute the increased prices to a shortage of supply from Honda.
Sales staff interviewed by Phap Luat Thanh Pho Ho Chi Minh stated that prices fluctuate based on market demand. For example, when demand is high, prices will increase accordingly. Given the supply shortage and the strong preference for certain models among Vietnamese consumers, it is understandable that dealerships would increase their prices.
Automotive and motorcycle expert Nguyen Minh Dong told the same publication that similar price premiums exist in other countries and depend on the agreement between the manufacturer and the authorized dealership. The agreement will clearly define the rights and responsibilities of each party, making it difficult to punish dealerships for charging premiums if not explicitly prohibited in the contract.
