Vietnam Two Wheeler Market, By Vehicle Type (Scooter/Moped, Motorcycle), By Engine Capacity (Up to 125cc, 126cc- 250cc, 251-500cc, Above 500cc), By Propulsion (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

The Vietnam Two Wheeler Market size accounted for USD 1.12 Billion in 2025 and is predicted to increase from USD 1.27 Billion in 2026 to approximately USD 2.25 Billion by 2031, expanding at a CAGR of 12.33% from 2026 to 2031.

Key Takeaways

• By vehicle type, the Scooter/Moped segment accounted for the largest market share of approximately 58% in 2025, owing to its ease of operation, fuel efficiency, maneuverability in congested urban areas, practical storage capacity, and strong suitability for daily commuting.
• By engine capacity, the Up to 125cc segment held the largest market share of approximately 76% in 2025, supported by its affordability, economical fuel consumption, adequate performance for urban mobility, lower maintenance costs, and extensive availability across entry-level and mid-range models.
• By propulsion, the ICE segment emerged as the leading contributor in 2025, driven by its established consumer acceptance, widespread refueling infrastructure, mature servicing ecosystem, readily available spare parts, and relatively lower upfront ownership costs.
• By region, Southern Vietnam accounted for the largest market share of approximately 43% in 2025, supported by its large urban population, strong economic activity, extensive commuting requirements, dense commercial networks, and high concentration of delivery and mobility services.
• Increasing electrification, rising consumer preference for scooters, expanding commercial mobility and delivery services, product innovation, growing adoption of battery-swapping solutions, and continued urban mobility requirements are expected to drive the long-term growth of the Vietnam Two Wheeler Market.

Market Drivers

Large and Established Two-Wheeler User Base

Vietnam’s large installed base of motorcycles and scooters provides a strong structural foundation for the two-wheeler market. According to the World Bank, Vietnam had 72.16 million registered two-wheelers in 2022, representing approximately 94% of the country’s total registered vehicle stock and around 518 two-wheelers per 1,000 people. More recently, Vietnam’s 2024 population and housing census reported that 89.4% of households use motorcycles or mopeds for personal transportation, highlighting their continued importance in daily mobility. With the country’s population reaching approximately 101.6 million in 2025, the extensive user base creates sustained opportunities for new vehicle purchases, replacement demand, and upgrades.

Strong Demand for Scooters and Automatic Motorcycles

Consumer preference in Vietnam is increasingly shifting toward scooters and automatic motorcycles, supported by their ease of operation, convenience in congested urban environments, and suitability for everyday commuting. The trend is reinforced by the country’s extensive two-wheeler user base and continued product innovation by major manufacturers. Honda Vietnam reported nearly 2.3 million motorcycle sales in FY2026, with an 84.7% share of VAMM-member sales, while the company introduced 14 new motorcycle models, including upgraded SH, Air Blade and ADV models, demonstrating continued investment in feature-rich scooters. Across VAMM members, approximately 2.7 million motorcycles were sold in FY2026, indicating the scale of Vietnam’s market. These developments are encouraging manufacturers to expand automatic scooter portfolios and premium offerings.

Growth of Electric Two-Wheelers

The transition toward electric two-wheelers is emerging as a major growth driver for Vietnam’s two-wheeler market, supported by environmental policies, rising fuel costs and improving product availability. The IEA estimates that Vietnam sold around 735,000 electric two-wheelers in 2025, more than double the previous year, representing over 20% of national two-wheeler sales and making Vietnam the largest electric two-wheeler market in Southeast Asia. The World Bank estimates that electric two-wheelers could account for 42–56% of Vietnam’s total two-wheeler sales by 2035, supported by strong consumer acceptance and a growing supplier base. Government efforts to restrict petrol motorcycles in parts of Hanoi from 2026 are further accelerating electrification.

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Market Restraints

Potential Shift Toward Passenger Cars

Rising incomes and expanding middle-class purchasing power could gradually encourage Vietnamese consumers to shift from two-wheelers toward passenger cars, creating a structural restraint for the two-wheeler market over the longer term. The World Bank reports that Vietnam’s GDP per capita increased from USD 1,684 in 2010 to USD 4,163 in 2022, while registered passenger cars expanded at a 15.2% CAGR, compared with 7.2% for two-wheelers. Nevertheless, passenger-car ownership remains relatively low at approximately 22 cars per 1,000 people, compared with 518 two-wheelers per 1,000 people, indicating substantial future motorization potential. Continued income growth and improving vehicle affordability could therefore gradually shift mobility preferences toward cars, particularly among affluent urban households.

Regulatory Uncertainty During the ICE-to-EV Transition

Vietnam’s rapid shift toward cleaner mobility is creating regulatory uncertainty for two-wheeler manufacturers, particularly those dependent on internal-combustion engine (ICE) models. The government has established a long-term target for 100% of road motorized vehicles to use electricity or green energy by 2050, while measures to limit fossil-fuel vehicle production and imports are planned from 2040. In addition, motorcycle emissions inspections will begin in Hanoi and Ho Chi Minh City from July 2027, with stricter standards for newer vehicles. Hanoi is also implementing phased restrictions on gasoline motorcycles in low-emission zones from 2026. Frequent policy changes can increase compliance costs, complicate product planning, and create uncertainty over future ICE investments.

Charging Infrastructure Limitations

Limited charging and battery-swapping infrastructure remains a significant restraint on the electrification of Vietnam’s two-wheeler market. While electric motorcycles are gaining adoption, charging facilities are concentrated primarily in major urban centers, creating range and convenience concerns for users in smaller cities and rural areas. The World Bank estimates that Vietnam’s transition to electric mobility could require additional electricity generation equivalent to around 5% of projected national demand and approximately 4% additional grid capacity by 2035. The investment required to expand charging networks, upgrade distribution infrastructure, and establish standardized battery-swapping systems could increase the overall cost of electrification. Infrastructure gaps may therefore slow electric two-wheeler adoption, particularly among consumers who lack convenient access to home or workplace charging.

Market Opportunities

Expansion of Electric Two-Wheeler Value Chains

Vietnam’s transition toward electric mobility is creating opportunities across the broader two-wheeler value chain, extending beyond vehicle manufacturing and sales. Opportunities are emerging in battery production, battery leasing, swapping networks, charging services, recycling, maintenance, software, and specialized financing solutions. The World Bank estimates that Vietnam’s shift toward electric mobility could generate up to 6.5 million cumulative jobs by 2050, including opportunities across vehicle manufacturing, infrastructure development, energy systems, and supporting services. The development of localized battery and component capabilities could also reduce supply-chain dependence and create opportunities for domestic suppliers. As electric two-wheelers gain market acceptance, companies that establish integrated ecosystems covering batteries, energy services, after-sales support, and digital platforms could capture additional value and develop recurring revenue streams.

Fleet Electrification for Commercial Mobility

The expansion of Vietnam’s passenger transport, last-mile delivery, and logistics sectors presents a significant opportunity for two-wheeler manufacturers to develop solutions specifically for commercial fleets. According to Vietnam’s National Statistics Office, passenger transport volume increased 22.2% in 2025, while freight transport volume grew 14.1%, indicating rising mobility and logistics activity across the country. This creates opportunities for manufacturers to supply purpose-built electric motorcycles with higher durability, extended operating ranges, cargo capacity, and lower lifecycle costs. Fleet operators can also benefit from battery-swapping systems, telematics, remote diagnostics, and centralized fleet-management platforms that minimize downtime. Partnerships with ride-hailing, food-delivery, courier, and logistics companies could therefore provide manufacturers with scalable fleet contracts and recurring aftermarket revenue opportunities.

E-Commerce-Enabled Sales and Distribution

Vietnam’s rapid expansion of e-commerce is creating new opportunities for two-wheeler manufacturers and dealers to diversify sales and distribution beyond traditional dealership networks. The Ministry of Industry and Trade reported that Vietnam’s e-commerce market exceeded USD25 billion in 2024, representing more than 20% year-on-year growth and approximately 9% of total retail sales of goods and consumer services. More than 60 million Vietnamese consumers participated in online shopping during 2024, highlighting the scale of the digital customer base. Manufacturers can leverage online channels for vehicle discovery, digital financing, accessories, spare parts, and service bookings, while dealers can use omnichannel models to reach customers beyond physical locations. This can improve market coverage and reduce customer acquisition friction.

Market Trends

Rapid Electrification of the Two-Wheeler Product Mix

Vietnam’s two-wheeler market is undergoing a rapid shift toward electric models, with electrification becoming an increasingly important component of the product mix. According to the International Energy Agency (IEA), electric two-wheeler sales in Vietnam more than doubled to approximately 735,000 units in 2025, representing more than 20% of total two-wheeler sales. Vietnam was also the largest electric two-wheeler market in Southeast Asia and contributed more than 30% of global electric two-wheeler sales growth during 2025. Domestic manufacturers, including VinFast and Pega, alongside Chinese brands such as Dibao and Yadea, are intensifying competition through new models, promotional campaigns and trade-in programmes. This trend is reshaping the competitive structure and product offerings of Vietnam’s two-wheeler industry.

Increasing Use of Battery-Swapping Solutions

Battery swapping is emerging as a distinct trend in Vietnam’s electric two-wheeler ecosystem, particularly as manufacturers seek to reduce charging downtime and improve vehicle utilization. In June 2026, Honda Vietnam began operating its Honda e:Swap Battery Station for CUV e: users in Hanoi, with plans to expand the network to other major cities. The company also introduced a battery-service model priced at USD 13.50 (VND350,000) per month for customers using the swapping network. This approach allows users to exchange depleted batteries without waiting for conventional charging, making electric motorcycles more practical for frequent urban travel and commercial applications. The development of standardized, manufacturer-backed swapping networks is therefore becoming an increasingly visible feature of Vietnam’s evolving two-wheeler market.

Shift Toward Integrated Mobility Ecosystems

Vietnam’s two-wheeler industry is increasingly evolving from a vehicle-centric model toward integrated mobility ecosystems that combine products with digital, energy, and after-sales services. Manufacturers are expanding their offerings to include vehicle connectivity, battery management, charging solutions, financing, maintenance, and digital customer services, enabling them to build longer-term relationships with users. Honda Vietnam, for instance, has been developing an integrated electric-mobility ecosystem encompassing electric motorcycles, charging and battery-swapping infrastructure, while also emphasizing resource circulation and battery management. This approach allows manufacturers to differentiate beyond vehicle specifications and strengthen customer retention. The trend is also encouraging partnerships among vehicle manufacturers, technology providers, financial institutions, and energy companies, creating a more interconnected two-wheeler ownership experience and new service-based revenue opportunities across Vietnam.

Market Report Coverage and Key Metrics

Market Segmentation Analysis

By Vehicle Type Insights

Why Did Scooter/Moped Secure the Largest Share of the Vietnam Two Wheeler Market?

Scooter/moped is estimated to account for approximately 58% of the Vietnam two-wheeler market, making it the dominant vehicle segment. Its leading position is primarily supported by strong suitability for urban commuting, where compact dimensions and easy maneuverability are advantageous in congested traffic. Automatic transmission provides greater convenience than manual motorcycles, particularly for daily users and first-time riders. Scooters also offer practical features such as under-seat storage, comfortable seating, step-through design, and relatively simple operation, increasing their appeal across a broad consumer base. Manufacturers offer scooters across entry-level, mid-range, and premium price categories, allowing the segment to address diverse purchasing preferences. In addition, modern styling, enhanced comfort, and integrated digital features continue to strengthen consumer preference for scooters and mopeds.

By Engine Capacity Insights

Why Did Up to 125cc Segment Dominate the Vietnam Two Wheeler Market?

The up to 125cc segment is estimated to hold approximately 76% of Vietnam’s two-wheeler market, making it the leading engine-capacity category. Its dominance is supported by its balance of fuel efficiency, adequate performance, affordability, and low running costs, making it well suited for everyday commuting. Models in this capacity range are particularly attractive to price-sensitive consumers who prioritize economical ownership without compromising basic mobility requirements. The segment also benefits from a broad selection of scooters, mopeds, and motorcycles, giving consumers greater choice across price points and designs. Lower maintenance requirements and relatively accessible replacement parts further strengthen its appeal. In addition, manufacturers’ extensive product portfolios in this capacity category reinforce availability through established dealership and distribution networks.

By Propulsion Insights

Why Did ICE Segment Dominate the Vietnam Two Wheeler Market?

The ICE segment is estimated to account for approximately 82% of Vietnam’s two-wheeler market, retaining the largest share due to its established consumer acceptance and extensive supporting ecosystem. ICE motorcycles benefit from well-developed refueling infrastructure, familiar maintenance practices, readily available spare parts, and a broad network of service workshops. Their comparatively lower upfront prices across entry-level and mid-range models also make them accessible to a wide consumer base. ICE vehicles provide established performance and refueling convenience, particularly for users undertaking frequent or longer-distance travel. In addition, manufacturers have extensive experience producing and servicing ICE two-wheelers, supported by mature supply chains and dealership networks. These factors collectively sustain ICE demand despite the market’s gradual transition toward alternative powertrains.

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Market Regional Analysis: Northern Vietnam, Southern Vietnam, Central Vietnam

Why Did Southern Vietnam Lead the Vietnam Two Wheeler Market?

Southern Vietnam is estimated to account for approximately 43% of the country’s two-wheeler market, making it the leading regional market. Its dominance is primarily supported by the region’s large urban consumer base, high commuting requirements, and strong concentration of commercial and economic activity. Ho Chi Minh City and surrounding industrial areas generate substantial demand for affordable and flexible personal transportation, particularly for daily commuting and short-distance travel. The region’s extensive network of roads and dense urban environments also favor two-wheelers over larger vehicles for maneuverability and parking convenience. In addition, strong retail, distribution, servicing, and aftermarket networks improve vehicle accessibility and ownership convenience. High activity in delivery, logistics, and app-based mobility services further supports sustained two-wheeler utilization and replacement demand across Southern Vietnam.

Why Is Northern Vietnam Expected to Register the Fastest Growth in the Vietnam Two Wheeler Market?

Northern Vietnam is expected to register the fastest growth in the country’s two-wheeler market, supported by expanding urbanization, industrial development, and rising mobility requirements. The region’s growing concentration of manufacturing facilities, industrial parks, and supporting businesses is generating increased commuting needs among workers and households. Rising consumer purchasing power is also enabling greater adoption of newer, better-equipped scooters and motorcycles, including premium and electric models. Hanoi and surrounding urban areas are additionally witnessing increasing demand for convenient personal mobility as traffic density and commuting distances rise. The expansion of organized retail and after-sales networks is improving access to newer models across secondary cities and emerging urban centers. Furthermore, the region’s evolving mobility ecosystem and increasing consumer acceptance of technologically advanced two-wheelers are expected to support sustained market expansion.

Key Market Players

• Honda
• Yamaha
• Suzuki
• Kawasaki
• TVS Motor
• Bajaj Auto
• Hero MotoCorp
• Royal Enfield
• Piaggio
• KTM

Recent Developments

In June 2026, Honda Vietnam began selling the CUV e: and announced the launch of the UC3, while simultaneously deploying battery-swapping and charging infrastructure in Hanoi, Ho Chi Minh City, and Da Nang. Honda also plans local production of the UC3 during 2026.

In June 2026, VinFast opened 66 additional electric motorcycle dealerships across 22 provinces and cities, bringing its authorized sales network to nearly 750 locations nationwide. The expansion strengthens domestic EV manufacturers’ ability to compete with established Japanese brands.

Report Scope:

By Vehicle Type

• Scooter/Moped
• Motorcycle

By Engine Capacity

• Up to 125cc
• 126cc- 250cc
• 251-500cc
• Above 500cc

By Propulsion  

• ICE
• Electric

By Region

• Northern Vietnam
• Southern Vietnam
• Central Vietnam

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Two Wheeler Market.

Available Customizations:

Vietnam Two Wheeler market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).