Industry insiders have forecast that in 2024, motorcycle sales may either equal the previous year or continue to decline compared with 2023. — AP
HANOI: The domestic motorcycle market near Lunar New Year (Tet) holiday has experienced an unusual phenomenon where instead of increasing prices, dealers are simultaneously reducing prices to stimulate demand.
However, despite these price reductions, uptake in the market remains weak.
Industry insiders have forecast that in 2024, due to the overall difficulties in the economy, motorcycle sales may either equal the previous year or continue to decline compared with 2023. In response to declining sales, both motorbike manufacturers and dealers are employing strategies to lower prices and attract buyers.
Manufacturers are engaging in price competition, and dealers are proactively reducing prices on various motorcycle models, with the reductions ranging from a few million to tens of millions of dong in the hopes of lowering their inventory and vehicles in storage.
For example, a Honda dealer in Hanoi has significantly reduced prices on the popular Vision scooter model. The standard Honda Vision is being offered for around 31 million dong, the special edition for 35 million dong, and the sports version for 37 million dong.
The prices represent a decrease of 2.5 million dong to 3.5 million dong compared with the previous month.
Despite these efforts to stimulate demand through promotional efforts and price adjustments, Honda dealers and other agents have reported that the number of customers has not increased compared with the years before the pandemic.
Data shows that total sales in 2023 reached 2,516,212 vehicles, representing a 16.21% decrease compared to the previous year. Honda Vietnam’s sales alone accounted for 2,088,557 vehicles, reflecting a 13.3% decline compared with 2022.
Despite the drop in sales, Honda Vietnam still holds a significant market share of 83% within the Vietnam Association of Motorbike Manufacturers (VAMM) and has even increased its market share by 2.8% compared with the previous year.
Motorbike sales in 2024 are expected to either remain stagnant or continue to decrease compared with 2023. To attract buyers, manufacturers will need to adjust prices, continuously improve their offerings, and introduce new models with reasonable prices.
The competition between brands and between gasoline and electric models will further drive the need for price adjustments and continuous innovation.
To stimulate sales, manufacturers may implement support programmes, discounts and instalment incentives. Competing on price and service quality will also play a crucial role in retaining customers amid declining market purchasing power, industry insiders said.
However, industry experts note that manufacturers may face challenges in attracting consumers due to a lack of completely new or breakthrough models.
Many offerings may be limited to mid-life cycle improvements or upgrades that do not significantly attract consumers.
The Vietnamese motorbike market is considered to be in a saturated, and the difficult economic situation following the Covid-19 pandemic has led consumers to tighten spending.
The trend of electrification is also impacting market dynamics, with consumers shifting from gasoline to electric motorbikes. — Viet Nam News/ANN
