China electric two-wheeler firm TAILG launches manufacturing base in Vietnam

TAILG, a Shenzhen-based electric two-wheeler company, has begun official production at its 10th global smart manufacturing base in northern Vietnam, marking full entry into the Vietnamese market that is highly competed for by foreign and domestic players.

The first batch of “Made in Vietnam” TAILG long-range electric vehicles rolled off the production line in My Hao district, Hung Yen province, as part of the company's globalization strategy, the firm said in a statement on Monday.

As TAILG's 10th R&D and manufacturing base in the world, the smart production complex in Vietnam covers an area of 40,000 square meters, with a designed annual capacity of 350,000 vehicles. It will become an essential support for TAILG in overseas markets.

The base includes technology research and development, intelligent manufacturing, sales, and after-sales services, which will help accelerate the electrification of Vietnam's two-wheeled vehicles.

“With the launch of this base, TAILG will introduce advanced technology and green mobility solutions to Vietnam while also extending its influence across Southeast Asia, accelerating the globalization of two-wheel electric vehicles,” stated the company.

In 2023, TAILG upgraded its global expansion strategy, focusing on establishing brand stores worldwide, particularly in Southeast Asia, where it is developing benchmark markets in Vietnam and Indonesia to drive the brand's globalization.

TAILG views Vietnam as a key market in its global strategy. According to TAILG, Vietnam has 45 million motorcycles, but the electrification rate is only 9%. Supported by policies like the “motorcycle restrictions” and the "oil-to-electric" transition, the electric two-wheeler market in Vietnam is growing rapidly and is expected to surpass $8 billion by 2025.

According to Research and Markets, the size of this market is set to grow to $10.2 billion by 2030.

Sun Muchai, senior vice president of TAILG Group, stated, “My Hao district's favorable location, convenient transportation, and well-developed industrial park make it an ideal choice for our expansion in Vietnam and lay a crucial foundation for our presence in Southeast Asia."

At the launching ceremony on Monday, Xiao Tianbao, director of the Vietnam division of TAILG's Overseas Business, announced a three-year strategic plan and signed cooperation agreements with the first batch of strategic clients.

HSBC said in a report in May that Vietnam’s electric two-wheeler market is the largest in ASEAN and second-largest worldwide, just behind China.

Looking ahead, Vietnam’s electric vehicle (EV) market has ample room for further growth. HSBC estimates that the country’s annual combined two-wheeler and electric car sales could rise from less than one million in 2024 to over 2.5 million by 2036.

Two-wheelers are forecast to lead the way in Vietnam’s EV surge. Compared to electric cars, two-wheelers are more affordable with greater vehicle component similarity, and which already boast a high rate of local production, according to HSBC.

The country’s electric two-wheeler market features big players such as local companies VinFast, Selex Motors, Dat Bike, EVGO of Son Ha Group, Pega, Italy’s Piaggio, Taiwan’s Dibao, and Hong Kong’s Yadea.