Is there any prospect for electric two-wheelers in Vietnam

Vietnam’s “motorcycle ban” policy

Southeast Asia motorcycle market penetration itself is very high, in recent years the lithium battery two wheeler industry is also about to usher in a policy demand expansion. A few years ago, the Vietnamese government announced that it would soon implement the “motorcycle ban”, planning for Ho Chi Minh City from October 2019, the city’s logistics service industry from motorcycles to use electric vehicles, from 2021 onwards will be a total ban on motorcycles, after 2023 to vigorously implement the “motorcycle ban”. After 2023, the “motorcycle ban” will be vigorously implemented.

It is important to sense the direction of the policy to grasp, Vietnam this year, there is still a “ban on motorcycles” wind: The government has just issued Decree No. 48 on strengthening the implementation of ensuring traffic order, safety and preventing traffic congestion between 2022 and 2025, which calls for restricting or stopping motorcycle operations in some areas after 2030 in five major cities: Hanoi, Ho Chi Minh City, Hai Phong, Da Nang and Can Tho.

Once the policy is launched in the future, it will be an excellent opportunity for EVs to enter the Vietnamese market, respond to the call for green mobility and capture market share. At present, Vietnam is not the majority of people who choose to travel by car, one is that Vietnam’s transportation infrastructure is backward, transportation planning is not perfect, in order to avoid traffic congestion, the government does not encourage automobile travel; the second is that at the current stage of Vietnam’s average per capita income is not high, the level of consumption is limited, and it is difficult for residents to support the cost of the car income level;

Thirdly, the high cost of local parts production in Vietnam does not have a mature and perfect industrial chain, locally produced cars are expensive, and the government imposes a special sales tax (SST) on imported cars in order to protect the local automobile industry, which leads to the vast majority of people preferring motorcycles, which are more cost-effective and more convenient for traveling.

Therefore, in Vietnam, cars are not as popular as in China as a means of daily transportation, and motorcycles are still the mainstream choice of transportation. The policy of banning motorcycles is unlikely to really limit the two-wheeled vehicle travel of Vietnamese residents, electric two-wheeled vehicles can seize this opportunity to occupy a certain market.

Cost-effective products are a priority

In the Vietnamese market, the cost-effectiveness of products has always been a priority for consumers. It is understood that the price of a motorcycle in the Vietnamese market is VND20-50 million, which is equivalent to about 6,000-15,000 RMB, while a two-wheeled electric vehicle costs about VND14 million, which is equivalent to about 4,200 RMB. the reason why the Vietnamese people prefer motorcycles is mainly due to the lack of local two-wheeled electric vehicles in terms of power and range.

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At present, the development of China’s new energy industry is flourishing, the battery life problem of motorcycle battery pack has been solved, and the research and development technology of electric vehicles is becoming more and more advanced. For example, the graphene battery used in electric vehicle introduced by Yadi, after the national authoritative testing organizations, the cycle life of up to 1320 times, which is 3 times of ordinary electric scooter battery life, while the graphene battery has a 1 hour charging 80% of the ultra-high performance, the range of far.

In terms of motors, it has self-developed GTR wideband power hub motor, ATT adaptive side-mounted motor, and center-mounted motor, which can adapt to a variety of road conditions and a variety of scenarios for riding.

Green travel is a globalized trend

After the United Nations Climate Conference in Paris in 2015, a number of countries and regions have begun to re-examine their own development strategies, some countries and regions have formulated a timetable for the retirement of fuel vehicles, and “electric mobility” has become a common issue for countries around the world.

Southeast Asia has also responded positively to the subject, although the infrastructure and economic development is not as developed countries, but the government will gradually “ban motorcycle” measures, but also will effectively guide the public “electric mobility”, which is typically represented by Vietnam. New energy to replace old energy, electric vehicles to replace fuel vehicles is the general trend, green travel is a global trend.

Summary

In Vietnam, the resistance that affects people’s choice of electric two-wheelers is still the habitual choice of oil vehicles and the stereotypes of electric vehicles, but with the passage of time, the “motorcycle ban” has really begun to implement the “conversion” policy.

But with the passage of time, later Vietnam really began to implement the “motorcycle ban”, the implementation of “oil to electricity” policy, coupled with the excellent cost-effective electric two-wheeled vehicles and eliminate the short battery life, in Vietnam’s two-wheeled vehicle market, electric two-wheeled vehicle market share proportion must be gradually occupy the lion’s share. In Vietnam’s two-wheeled vehicle market, the market share of electric two-wheeled vehicles will gradually take the lion’s share.

Considering the promulgation and implementation of the policy and the change of people’s concept of two-wheeled vehicles requires a certain response time, it is a good time for electric two-wheeled vehicle brands to enter the Vietnamese market and set up their roots at this point in time.