Motorbike 'king' Honda and the race towards electric two-wheelers

Dominating Vietnam’s gasoline-powered motorbike market with a 83% share, Japan’s Honda - long considered the "king of motorbikes" - appears to be lagging in the electric motorbike race.

The giant has introduced only two electric models to the Vietnamese market so far: ICON e: and CUV e:.

Gasoline vehicle market share still growing

At an event to announce its FY2025 business results and FY2026 strategic directions held in late June, Sayaka Arai, CEO of Honda Vietnam (HVN), stated that both Honda Motor and HVN had achieved remarkable results in the gasoline-fueled motorbike segment.

Globally, Honda sold 20.57 million units, accounting for about 40% of global market share, achieving record-high annual sales across 37 countries and territories. Industry-wide, global motorbike sales are expected to increase from 50 million to around 60 million units by 2030.

In Vietnam, the fiscal year ending March 31, 2025 showed strong signs of recovery. Total motorbike sales by members of the Vietnam Association of Motorcycle Manufacturers (VAMM) reached over 2.7 million units, up 10% year-over-year. HVN alone sold nearly 2.3 million units, also up 10%, with its market share climbing to 83%, an increase of 1.6%.

In addition to domestic business operations, HVN also worked to expand exports. In FY2025, the company exported nearly 305,000 completely built-up (CBU) motorbikes, and total export value, including bikes and parts, reached approximately $635 million, up 24% from FY2024.

The dominance of Honda in Vietnam is so strong that “motorbike” is often synonymous with “Honda.” In FY2025, HVN introduced 13 new models, mostly gasoline-powered, including some first-time releases in Vietnam and significant upgrades. The LEAD ABS and SH350i were particularly notable.

The 40 millionth motorbike produced by HVN in Vietnam, marking nearly 30 years of Honda in the country, was also a Honda Vision, a gasoline model.

Entering the electric arena

A key highlight of FY2025 and the upcoming strategy is Honda’s acceleration of electrification for its motorbike lineup, alongside improving fuel efficiency for internal combustion engine (ICE) models and expanding its portfolio of flex-fuel vehicles.

Among the 13 new models launched in FY2025, only two electric models – ICON e: and CUV e: – marked Honda's first official step into Vietnam’s electric motorbike market. They made their debut in October 2024. The ICON e: is priced at nearly VND30 million or $1,147 (excluding battery rental)m while the CUV e: is rental-only.

Although launched in October, the first CUV e: units were delivered to renters on July 14. Rental terms include a VND2 million ($76.5) deposit and a monthly service fee (including 8% VAT) of approximately VND1.5 million - a relatively high cost, particularly for light users. The rental cost in 1-2 years could rival the price of buying a new vehicle.

Honda’s slow entry into the electric motorbike segment is not unique to Vietnam. Globally, the company only began sales of two electric models, Active e: and QC1, in February 2025, following announcements in India the previous year.

Vietnam’s electric two-wheeler market heats up

According to the latest report from Motorcycles Data, a global motorcycle statistics platform, Vietnam’s electric motorbike segment saw a strong start in 2025. The L1 category (sub-50cc, mostly used by students) surged 52.9%, while the L3 category (larger capacity) declined 25%.

Among domestic brands, VinFast maintained its lead, with sales up 147.8%, far outpacing rivals Dibao, Yadea, and Pega.

In the overall two-wheeler market (gasoline and electric), VinFast ranks third, behind Honda and Yamaha.

A report by Vietnam’s research-driven equity investor Kirin Capital shows domestic manufacturers now hold 70% of the electric motorbike market.

VinFast leads with over 43%, far ahead of second-place Pega with nearly 16%. Chinese brands Dibao and Yadea follow with 12% and 8.6%, respectively. Other brands include Anbico (8.3%), NIU (6.2%), Gogoro (3.1%), and smaller players like DK Bike, Detech, and Vmoto, each with under 3%.

Honda and Yamaha, despite their size, are still considered newcomers to Vietnam’s electric motorbike scene.

Honda’s long-term vision

Looking ahead, Sayaka Arai stated that Honda will adopt a modular approach in developing purpose-built electric motorbikes and will begin production at a dedicated high-performance EV plant in India by 2028.

Through these initiatives, Honda aims to deliver electric motorcycles at more affordable prices to a broader customer base. In the long term, Honda's goal is to become No. 1 in electric motorbike market share, she said.

Honda also aims to build a solid profitability foundation, targeting 50% global market share and 15% return on sales (ROS) by 2030, across both ICE and electric motorbike lines.

With VinFast already holding nearly half the electric market, and giants like Honda and Yamaha now officially in the game, Vietnam’s electric motorbike market is poised for exciting and competitive developments in the coming years.