Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda Vietnam (HVN) reported a 10% year-on-year increase in motorcycle sales to nearly 2.3 million units in fiscal year 2025, which ended on March 31, according to the company’s annual report.

The growth consolidates the Japanese giant’s dominance in Vietnam’s motorcycle market with a market share of 83%, HVN cited data from the Vietnam Association of Motorcycle Manufacturers (VAMM) as reporting.

During FY2025, HVN exported nearly 305,000 completely built-up (CBU) motorcycles. Its total export value, including both CBU motorcycles and parts, was estimated at $635 million, up 24% year-on-year.

Last year, Honda Vietnam launched its first electric scooters, the ICON e: and CUV e models as part of its shift toward electrification.

In the automobile segment, HVN sold nearly 30,000 vehicles, a 10.5% year-on-year increase. The company also introduced the e:HEV hybrid version of its Civic model, which offers over 30% better fuel efficiency compared to conventional gasoline-powered vehicles.

In Vietnam, Honda currently operates three motorcycle plants and one automobile plant with annual capacities of 2.75 million and 35,000, respectively.

Looking ahead to FY2026, HVN said it will focus on diversifying its product portfolio and enhancing the customer experience, aligning with Honda Motor’s global target of achieving carbon neutrality by 2050.

Supporting its electric transition, Honda Vietnam has partnered with Vietnam Post to pilot electric delivery vehicles, supplying 130 Benly e: scooters in Ho Chi Minh City and 205 units in Hanoi.

Under a directive issued on July 12, Prime Minister Pham Minh Chinh asked Hanoi to ban gasoline-powered motorbikes from its downtown core starting July 2026, part of a sweeping plan to cut emissions and improve air quality.

The ban will apply to all fossil fuel-powered motorbikes and scooters operating within Ring Road 1, which covers the central districts, including Hanoi’s Old Quarter.

By 2028, the restrictions will expand to include gasoline-powered private cars within Ring Roads 1 and 2. By 2030, the city aims to restrict all personal fossil fuel vehicles inside Ring Road 3, which forms the outer ring of the capital and connects to major highways leading to neighboring provinces.

Meanwhile, Hanoi will roll out financial incentives for companies that build or assemble electric vehicles (EV).