Vietnam's New Motorcycle Policies Have a Significant Impact on Honda

March 14, Japan's Kyodo News reported: As a major motorcycle country, Hanoi, the capital of Vietnam, will start regulating gasoline-powered two-wheelers in July 2026. This is a major blow to Honda, which has long held a market share of over 80% for gasoline motorcycles in Vietnam.

Vietnam's new motorcycle policies are measures to address "air pollution," but some people believe they are also a way to protect local manufacturers like "VinFast" electric vehicles, which lead in electric vehicle sales.

Japanese diplomatic sources warned that "this could be a turning point for the rise of protectionism and the decrease in enthusiasm for foreign investment."

In July 2025, the Vietnamese government suddenly announced regulations on gasoline-powered two-wheelers in Hanoi. After the announcement of the measures, people were cautious about buying new gasoline motorcycles. Electric vehicles, with their rich product lines, have received attention, and Vinfast, a local company, maintains the largest share in electric vehicle sales.

Vietnam's goal is to become a high-income country by 2045. It positions the private sector as "the most important driving force" and promotes the development of local enterprises.

Japanese media said: "Vietnam's economic nationalism is increasing."

In the center of Hanoi, the use of gasoline motorcycles is restricted at different times and in different areas. The specific details are not clear, but if it is impossible to ride a motorcycle to work or school, one must switch to an electric vehicle. Japanese diplomatic sources are concerned, saying, "In the areas where the ban measures were issued, the severity of the problems faced by oil-powered vehicles can be seen."

A Hanoi resident said, "After the announcement of the measures, I immediately bought an electric vehicle and sold my gasoline motorcycle," "Buses are often late, affecting work," "There are few charging points."

With economic growth, air pollution in Hanoi, the capital, has become increasingly severe. Sometimes the city is shrouded in white smoke, with pollution levels reaching the worst in the world. Some media reports state that gasoline motorcycles are one of the pollution factors, while Japan has differing opinions on the causal relationship.

Because of its high performance and quality, Honda has become synonymous with motorcycles in Vietnam. However, in the 1990s, cheap Chinese cars flooded the market, and its market share once dropped to around 10% from over 50%. Through local procurement of parts and the development of low-cost motorcycles, Honda achieved a V-shaped recovery.

Honda plans to launch a brand-new electric motorcycle to cope with the crisis in Vietnam. Sales will begin in June 2026, earlier than the implementation of the regulations.

Honda executives are enthusiastic about "capturing the largest share of electric vehicles." However, there are many issues in the process of popularization, such as complex approval procedures during the construction of new charging stations.

A Japanese government official pointed out that even Honda, although it has promoted the development of the local industry through local production, would face serious consequences if it were to be ignored. He said, "There is a risk that Vietnam's position towards foreign investment, including Japanese companies, could be completely changed."

Original: toutiao.com/article/1859600639756617/

Statement: This article represents the personal views of the author.