Vietnam EV Two-Wheeler Fleets Market

Vietnam EV Two-Wheeler Fleets Market Overview

• The Vietnam EV Two-Wheeler Fleets Market is valued at USD 220 million, based on a five-year historical analysis. This growth is primarily driven by increasing urbanization, government incentives, and a rising awareness of environmental sustainability among consumers. The shift towards electric mobility is further supported by advancements in battery technology and the expansion of charging infrastructure across the country .
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their high population density and traffic congestion, which create a strong demand for efficient and eco-friendly transportation solutions. Additionally, these urban centers have seen significant investments in EV infrastructure, making them attractive locations for electric two-wheeler fleets .
• In 2023, the Vietnamese government implemented a policy to exempt electric vehicles from registration fees and provide subsidies for electric two-wheeler purchases. This initiative was enacted under Decree No. 10/2022/ND-CP issued by the Government of Vietnam, which stipulates registration fee exemptions for battery electric vehicles, including electric two-wheelers, and sets forth eligibility criteria and application procedures for subsidies. The policy aims to accelerate the adoption of electric mobility and reduce greenhouse gas emissions, aligning with the country's broader environmental goals .

Vietnam EV Two-Wheeler Fleets Market Segmentation

By Type:The market is segmented into various types of electric two-wheelers, including Electric Scooters, Electric Motorcycles, Electric Mopeds, E-Bikes, and Others. Among these,Electric Scootersare leading the market due to their popularity among urban commuters seeking convenient and cost-effective transportation options. The lightweight design and ease of use make them particularly appealing to younger consumers and city dwellers. Electric Motorcycles also hold a significant share, catering to those looking for higher performance and longer ranges.

By End-User:The end-user segmentation includes Personal Use, Commercial Fleets (Logistics, Delivery, Corporate), Government Agencies & Public Sector, and Ride-Sharing & Mobility Services. ThePersonal Usesegment is currently the largest, driven by the increasing number of individuals opting for electric two-wheelers as a sustainable alternative to traditional gasoline-powered vehicles. The convenience and cost savings associated with electric scooters and motorcycles make them particularly attractive for daily commuting.

Vietnam EV Two-Wheeler Fleets Market Competitive Landscape

The Vietnam EV Two-Wheeler Fleets Market is characterized by a dynamic mix of regional and international players. Leading participants such as VinFast, Pega (formerly HKbike), Dat Bike, Yadea Vietnam, Anbico, Detech, Honda Vietnam, Yamaha Motor Vietnam, SYM Vietnam, Son Ha EV, Selex Motors, Dibao Vietnam, Gojek Vietnam, Grab Vietnam, FastGo Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam EV Two-Wheeler Fleets Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Vietnam's urban population is projected to reach approximately 41% in future, up from about 37% in the recent past, according to the World Bank. This rapid urbanization drives demand for efficient transportation solutions, particularly in congested cities like Ho Chi Minh City and Hanoi. The need for compact, eco-friendly vehicles aligns with the growing preference for electric two-wheelers, which offer a sustainable alternative to traditional gasoline-powered scooters, thus supporting market growth.
• Government Incentives for EV Adoption:The Vietnamese government has committed to reducing greenhouse gas emissions by 8% unconditionally, with potential increases to 25% through international support. To achieve this, the government offers incentives such as tax exemptions and subsidies for electric vehicle purchases, which are expected to reach 20 million VND (approximately $850) per vehicle in future. These initiatives significantly lower the financial barriers for consumers and fleet operators, promoting EV adoption.
• Rising Fuel Prices:Fuel prices in Vietnam have fluctuated, with recent reports indicating petrol prices around 23,000–25,000 VND per liter (approximately $0.95–1.05). This surge in fuel costs is prompting consumers and businesses to seek more economical alternatives, such as electric two-wheelers. The cost-effectiveness of EVs, combined with lower maintenance expenses, positions them as an attractive option for both personal and fleet use.

Market Challenges

• High Initial Costs:Despite government incentives, the initial purchase price of electric two-wheelers remains a significant barrier. The average cost of an electric scooter in Vietnam is around 20–40 million VND (approximately $850–1,700), which is higher than many traditional scooters, but the price gap varies by model and brand. This price disparity can deter potential buyers, particularly in a price-sensitive market, limiting the growth of the EV two-wheeler fleet segment.
• Limited Charging Infrastructure:As of the most recent data, Vietnam has fewer than 1,000 public charging stations for electric vehicles, which is insufficient to support a growing EV fleet. The lack of widespread charging infrastructure creates range anxiety among potential users, hindering the adoption of electric two-wheelers. To facilitate market growth, significant investment in charging networks is essential, with estimates suggesting a need for at least 5,000 stations in future to meet demand.

Vietnam EV Two-Wheeler Fleets Market Future Outlook

The future of the Vietnam EV two-wheeler fleet market appears promising, driven by increasing urbanization and supportive government policies. As the urban population grows, the demand for efficient and sustainable transportation solutions will rise. Additionally, advancements in battery technology and charging infrastructure are expected to enhance the viability of electric two-wheelers. With ongoing government support and rising environmental awareness, the market is poised for significant expansion, creating a favorable environment for both manufacturers and consumers.

Market Opportunities

• Expansion of Charging Networks:The Vietnamese government plans to invest in expanding the charging infrastructure, but the specific figure of 1 trillion VND (around $43 million) by 2025 cannot be confirmed from authoritative sources. This investment will facilitate the growth of electric two-wheeler fleets by alleviating range anxiety and improving accessibility for users, thus encouraging more consumers to transition to electric vehicles.
• Technological Advancements in Battery Life:Innovations in battery technology are expected to enhance the performance of electric two-wheelers, with many new models offering ranges of up to 100 kilometers on a single charge. This figure is consistent with current industry offerings and is supported by manufacturer specifications.