July 13, 2024
In-depth analysis of Southeast Asia electric motorcycle market
Since 2020, the production of electric motorcycles in China has maintained growth, but the increase has shown a downward trend for two consecutive years, and companies are urgently looking for new growth markets. Who are the top 10 e-scooter manufacturers in China?
The market share of the top 5 companies in China’s electric two-wheeler industry has increased from 36% in 2016 to 70% in 2020, and fierce competition in the Chinese market has further spawned the need for leading enterprises to export.
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Most companies have set their sights on the Southeast Asian market, which has the highest motorcycle ownership in the world.
Motorcycles have become the most popular mode of travel for local residents in Southeast Asia due to the country’s small size, underdeveloped urban transportation construction, and economic backwardness.
Under the constraints of global carbon emissions, Southeast Asian countries are actively promoting the transition from fuel motorcycles to electric motorcycles, which brings a wide space for the electric motorcycle market. Explore the top 10 electric motorcycle manufacturers in the world.
Market size and penetration
Motorcycle market size
Against the backdrop of the world’s economic difficulties, motorcycle consumption has fallen sharply in many countries and regions, but Southeast Asia remains by far the fastest growing region in the world.
In 2022, motorcycle sales in Southeast Asia amounted to about 13 million units, with the top three sales ranking Indonesia, Vietnam, and Thailand selling 5.5, 3.5, and 1.85 million units respectively; Indonesia’s motorcycle sales in 2023 continued to lead the way with a growth rate of 35%. Explore more information about top 10 electric motorcycle manufacturers in Thailand.
The motorcycle market size in Southeast Asia has reached USD 30 billion in 2023, and is expected to maintain a CAGR of 7-8% to reach a market size of USD 38.5 billion by 2027. In terms of sales volume and market size, the Southeast Asia motorcycle market has become the third largest market in the world after China and India. Explore more information about the top 10 electric motorcycle manufacturers in India.
Electric motorcycle penetration in Southeast Asia
The overall motorcycle market in Southeast Asia is already very mature, but the rate of electrification is not high. Currently, countries are gradually replacing fuel motorcycles under the impetus of policy and economy, and the overall market will grow at a CAGR of 13% in 2023, with more room for market growth.
| Vietnamese market | Indonesian market |
|---|---|
| Electric motorcycles account for 10% of the total number of motorcycles in Vietnam, making it the country with the highest electrification rate in Southeast Asia. About 80% of the electric motorcycles produced in Southeast Asia are supplied to the Vietnamese market. The relatively high rate of electrification puts Vietnam ahead of other Southeast Asian countries in terms of electric motorcycle supply chain support. | Indonesia, the top motorcycle seller in ASEAN, has less than 1% penetration of electric motorcycles in 2023, but is growing at a significant rate, from 17,000 units in 2022 to 62,000 units in 2023. |
Southeast Asia electric motorcycle market drivers
Policy impetus
Under the dual-carbon objective, ASEAN countries have actively promoted the “fuel-to-electricity” policy, which has facilitated the gradual replacement of fuel motorcycles by electric motorcycles.
Indonesia has announced that it will subsidize Rp7 million per electric motorcycle to buyers of 250,000 electric motorcycles, and cut the corporate income tax of companies investing in the electric vehicle industry according to the amount of their investment. corporate income tax.
Other Southeast Asian countries are also actively supporting the further popularization of electric motorcycles through tariff reductions and consumer subsidies.
Cost
The relatively low cost of electric motorcycles meets market demand in the current economic downturn. Compared to fuel motorcycles, electric motorcycles can save more than 40% in energy costs and 50% in usage costs.
Although the price is higher than that of fuel motorcycles, most countries in Southeast Asia offer subsidies to make up most of the price difference between the two. Overall, they are more cost-effective.
Technological progress
New technologies such as sodium electricity are expected to gradually open up potential markets for electric motorcycles.
Southeast Asian countries fuel motorcycles are mostly used by male-dominated, due to the high threshold of fuel motorcycle use, women, teenagers and other groups of travel transportation is limited, the number of this part of the customer base is about 2.5 times the number of male customer base.
Sodium battery is the most cost-effective battery on the market, effectively solving the dilemma of insufficient lead-acid, lithium-ion, graphene, high price, low energy density, etc. It will promote the penetration of electric motorcycles in potential segments such as women and teenagers, releasing a huge incremental market.
Competitive landscape of electric motorcycle market
Currently, the Southeast Asian electric motorcycle market is dominated by local brands such as Gesits in Indonesia and VinFast and Pega in Vietnam.
Japanese motorcycle brands Honda, Yamaha, although with the leading advantage in Southeast Asia’s monopoly oil motorcycle market, oil motorcycle market share reached more than 80% in 2022, but the electric transition is slower. In Southeast Asia, the electric motorcycle market share in each country accounted for less than 3%.
On the contrary, China’s electric motorcycle head brand, such as Yadea and Aima, entered the Southeast Asian market, with a mature supply chain and perfect support system, in various countries to steadily lay factories and sales channels, expanding the opportunity to Southeast Asia offshore. Take the Indonesian and Vietnamese markets for example:
Indonesian market
Market share
Indonesia has witnessed the gradual enrichment and development of local brands in recent years, among which Gesits is the most outstanding performer with a market share of 53% in Indonesia’s electric motorcycle market by 2022, while other Indonesian local brands such as SWAP, VIAR, SELIS have less than 10% market share.
Chinese brand Yadea is the first to enter the Indonesian market, with a market share of 13% in 2022.
Competitive advantages of local brands
Established in 2017, Gesits is the first local manufacturer in Indonesia and currently has more than 70 dealers in the country and has established a presence in the minds of consumers with great value for money.
SWAP has 180 dealers across the country and has established competitive barriers in terms of supply chain costs and localized channel expansion. From the supply chain point of view, the company owns the leading electric motorcycle supply chain resources in China, and has its own power plant, with significant cost advantages.
In terms of channels, SWAP has abundant cooperation resources, signed cooperation agreements with Grab, Lazada and other leading travel platforms, and has already covered mainstream dealers in Indonesia, making it the best electric motorcycle brand in terms of dealer sales, and it has the opportunity to replace Gesits as the most popular electric motorcycle brand in Indonesia in the future.
Competitive strategies for chinese brands
Chinese brands entered Indonesia late, and local brands have already gained a certain reputation and scale advantage in the region, so there is more resistance to competition in the future, and Chinese brands are taking active measures.
In February 2023, Yadea chose to form an exclusive strategic cooperation with distributor Indomobil in the Indonesian market, and Indomobil became Yadea’s exclusive distributor in Indonesia. As a result, Yadea gained market access advantages and hoped to provide products more in line with local demand through the localization of its operations.
On May 13, 2024, Yadea’s intelligent production and research base was in Indonesia. The groundbreaking ceremony was officially held to further improve the supply chain system. Read more about the top 10 two wheeler manufacturers in Indonesia.
Vietnamese market
Market share
The top three selling brands in Vietnam in 2022 were PEGA, VinFast, and Yadea, with market shares of 28%, 25%, and 18%, respectively.
72500 Electric motorcycles were delivered by VinFast in FY23, while Yadea’s sales volume in Vietnam exceeded 100,000 units in FY23, so Yadea’s market share is still expected to increase in FY23.
Competitive strategies for chinese brands
Like the Indonesian market, Yadea is also the first to enter the Vietnamese market among the many Chinese companies going to sea in Southeast Asia.
As early as 2014, Yadea entered the Phu Nghia Industrial Zone, Zhangmei Limit, Hanoi, Vietnam, to lay down production capacity in advance for the deep plowing of the Vietnamese market. In 2019, Yadea officially entered the Vietnamese market and announced that the production base in Beijiang, Vietnam, was officially put into production.
In addition to entering the market earlier, Yadea’s core competitive advantage lies in its differentiation strategy, cost-effective products and mature channel operation experience.
In terms of price/performance ratio, Yadea and Pega have similar product positioning, but Yadea’s average price is RMB 4,000 – 6,000, while Pega’s average price is more than RMB 10,000.
In terms of product differentiation, Yadea has introduced long range, large wheel diameter and long wheelbase products to the market according to the characteristics of mountainous and rainy areas in Vietnam to better meet the needs of local consumers.
In terms of channels, Yadea has vigorously expanded its offline stores and dealer network. According to the official website, the number of Yadea Vietnam franchise stores has exceeded 400 and has more than 500 dealers.
Future market opportunities
The Southeast Asian electric motorcycle market is in its infancy and has a promising development prospect. The demand and popularity of electric motorcycles in Indonesia and Vietnam are relatively high, and most enterprises have prioritized layout in these two countries, and the market environment is relatively mature in the entire Southeast Asian region.
Although Japanese brands still dominate the motorcycle market in Southeast Asia, they are not as good at exploring the tram segment as Chinese brands because they rely on fuel motorcycles to achieve expansion, and under the influence of the oil-to-electricity conversion policy, Japanese brands will see a decline in sales starting in 2023.
On the contrary, the Chinese brands of electric motorcycle product development earlier, with its rich experience accumulated in its home country, has been in the Vietnamese market since 2023 to achieve steady sales growth, is expected to replace the monopoly of Japanese brands in the future.
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Nancy
Nancy has worked hands-on with battery swap infrastructure for electric two- and three-wheelers since 2021, including deployment projects in South Asia. She regularly consults on EV fleet electrification and has contributed technical specifications to multiple swapping station manufacturers. Her market analysis is grounded in direct collaboration with importers, dealers, and RMV registration data.
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