Domestic groups see inherent potential in e-vehicles
Domestic groups see inherent potential in e-vehicles
A newcomer to Vietnam’s electric motorbike scene has launched new models in anticipation of a bustling market.
Son Ha Group, a multidisciplinary economic group with business lines across civil and industrial products, water, renewable energy, industrial infrastructure and real estate, and more last week launched four Vietnamese-made e-motorcycles.
There are now over three million electric bikes in circulation in this country Photo: Son Ha Group
They include two battery-powered models with a maximum speed of up to 80km per hour and a maximum travel distance of up to 200km per charge. The designs are considered similar to the Honda Vario, Yamaha Exciter, and VinFast Klara.
At the launch event, deputy director general Hoang Manh Tan said, “Currently, the trend of switching from traditional motorbikes to e-bikes is strong in Vietnam, especially in the southern provinces. This is a great opportunity for two-wheeler assemblers and manufacturers.”
Tan further explained that younger people around the world are more aware of the effects of environmental pollution and climate change due to fossil fuels released into the environment.
“So, if the government has clear and systematic communication, they will be exposed to new things and are excited instead of being hesitant, and that’s why we have developed into the southern market,” he said.
Although there have been many domestic groups jumpimg in this field thus far, Tan said that in order to make an electric vehicle (EV) industry in Vietnam, determination and persistence are vital for the businesses keen to get involved.
“The market is still very open with good products, reasonable prices, and stable features that could be good enough for the Vietnamese population as well as for export to other ASEAN nations,” added Tan.
In the next 5-10 years, Son Ha hopes to become one of the three largest EV manufacturers and suppliers in Vietnam, accounting for 10-20 per cent of the domestic two-wheeler market share of about 300,000-600,000 vehicles a year.
Son Ha’s production plant in the northern province of Bac Ninh, in Thuan Thanh II Industrial Park, was inaugurated three years ago.
The current top name in Vietnam, VinFast, boasts four e-bike models. The company decided in 2021 to completely focus on electric models rather than balancing that with traditional vehicles.
New names entering the market, from young startups to bigger EV brands, are also attempting to launch models with many technical innovations such as longer distances on a single charge, and allowing faster speeds in certain environments.
They include DAT Bike, which has been involved in manufacturing at a Weaver factory in the southern province of Binh Duong for several years, and Pega, with e-bike models that it claims can compete with big names such as Honda and Yamaha.
Tan of Son Ha Group acknowledges that, according to the government’s plan, all petrol motorcycle production will be stopped by 2040.
“However, I think Vietnam will achieve this sooner for two reasons. Firstly, people will have a greater sense of change and benefits when using EVs; and secondly, at the same time, big companies that produce more gas motorbikes will convert to e-versions. When they switch to EVs, the era of gas cars will end,” Tan said.
According to the Ministry of Industry and Trade, there are currently over three million electric bicycles and electric motorbikes in circulation in Vietnam, and the demand is only rising.
