Honda’s position in Vietnam’s motorbike market faces new challenges as the government moves to phase out fossil-fuel-powered motorbikes from central Hanoi within 12 months, with a broader ban planned for 2028.

The new directive, issued by Prime Minister Pham Minh Chinh in July, is part of efforts to address severe air pollution in the capital.

Industry data shows Honda’s sales in Vietnam dropped nearly 22% month-on-month in August, and 13% year-on-year after the ban announcement.

Honda, the world’s largest motorbike maker, sold 2.6 million vehicles in Vietnam last year, accounting for over 80% of the market, while local EV maker VinFast delivered 71,000 electric motorbikes.

A September survey by Asia Plus Inc found that 54% of 200 respondents in Vietnam’s two largest cities plan to choose an electric motorbike for their next purchase, with government policy cited as a key reason.

The same survey showed 50% of respondents would consider Honda, while 32% would opt for VinFast.

🔗 Source: Reuters

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