For decades, Honda has been synonymous with motorcycles in Vietnam. However, the latest sales data and market surveys paint a dramatically different future, where the Japanese giant’s dominance is under severe threat.
According to a recent analysis by Reuters, Honda’s decades-long reign in Vietnam faces its most significant challenge yet.
Honda’s motorcycle dominance is gradually being shaken by the rise of electric vehicles.
The primary driver of this shift is environmental regulations. Hanoi plans to ban gasoline motorcycles in central districts from July 2026, expanding to other areas by 2028. This policy is creating a domino effect, significantly altering public perception.
A September 2025 survey by market research firm Asia Plus Inc. revealed a startling reversal:
54% of respondents stated they would choose electric motorcycles for their next purchase.
Only 24% indicated they would still opt for gasoline bikes.
More alarming for Honda is the shift in brand loyalty. While 80% of survey participants currently own a Honda, only 50% said they would consider buying one in the future.
In contrast, VinFast, which currently accounts for only 4% of respondents’ bikes, has surged to become the choice of 32% for their next purchase.
Honda ICON e: – Honda’s official electric motorcycle model in the Vietnamese market.
This shift in consumer mindset is already reflecting in business results. According to Reuters, Honda Vietnam’s sales in August 2025 dropped nearly 22% from the previous month and 13% year-over-year.
While this decline hasn’t erased its dominant position—with 2.6 million units sold last year (over 80% market share)—it serves as an early warning sign. Meanwhile, Honda’s electric vehicle efforts remain limited, with few options and unclear sales figures.
Vietnam’s two-wheeler market is projected to grow from $4.6 billion in 2025 to $6 billion by 2030, according to Mordor Intelligence. The battle for this massive market share is entering a new phase.
Kengo Kurokawa, CEO of Asia Plus, notes: “Strong supportive policies, including the gasoline ban roadmap and media messaging, are reshaping consumer perceptions. This could accelerate market shifts faster than traditional manufacturers anticipate.”
Clearly, the era of absolute dominance by gasoline motorcycles—and Honda itself—is drawing to a close. The wave of electrification is arriving faster than ever, and the race to redefine Vietnam’s motorcycle market has only just begun.
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