Vietnam Electric Vehicle Market 2025: Electric Motorcycles Enter Global Top 3, Electric Cars See Strong Growth

According to Motorcycles Data, Vietnam’s motorcycle market recorded sales of approximately 2.08 million units in the first eight months of 2025, up 15.2% YoY. Notably, the electric motorcycle segment achieved remarkable momentum, with cumulative growth ranging from 89% to 197%, making it the fastest-growing category in the entire market.

Electric Motorcycles – Rising to the Global Top 3

Data from the first half of 2025 by Motorcycles Data shows that Vietnam sold approximately 209,000 new electric motorcycles, marking a 99.2% increase compared to the same period in 2024. This result elevated Vietnam to the third-largest market worldwide for electric motorcycle consumption, behind only China and India.

The light electric motorcycle segment L1 (under 50 cc) recorded growth of nearly 89%, while the L3 segment (above 50 cc) surged with an impressive increase of almost 197% year-on-year.

In terms of brands, Honda and Yamaha continue to dominate the overall motorcycle market, followed by VinFast. During the first eight months of the year, Honda’s sales grew by 6.3%, Yamaha declined by 8.6%, while VinFast achieved an extraordinary 447% increase. This momentum positions VinFast as the leader in the electric motorcycle segment, ahead of Yadea (+41.5%), Dibao, Pega, and several other competitors.

Electric Cars – Breakthrough Growth

Over the past three years, Vietnam has been recognized as one of the fastest-growing emerging electric car markets in Southeast Asia, ranking second globally after Brazil, according to BloombergNEF.

EV sales in selected markets

Source: BloombergNEF, MarkLines, Jato Dynamics

The Electric Vehicle Outlook 2025 report indicates that annual electric car sales in Vietnam are projected to grow more than tenfold between 2022 and 2025, from fewer than 10,000 units to over 100,000 units. This rapid expansion places Vietnam on track to catch up with Thailand and potentially surpass several other developing economies.

Meanwhile, IMARC Group forecasts that Vietnam’s electric car segment alone could reach a market value of USD 12.23 billion by 2033, with an average annual growth rate of 16.8%. Experts believe that if this momentum continues, Vietnam is well-positioned to become one of Asia’s leading electric car hubs.

Factors Driving Electric Vehicle Demand

Several key policies are providing strong momentum for the rapid growth of the electric vehicle market in Vietnam.

Registration fee incentives:

For electric motorcycles, under Decree No. 175/2025/NĐ-CP, the registration fee is uniformly applied at 2% nationwide for first-time registrations. For electric cars, under Decree No. 51/2025/NĐ-CP, battery-powered electric cars continue to enjoy a 100% exemption on the first-time registration fee until February 28, 2027.

Vehicle transition roadmap: According to Directive No. 20/CT-TTg of the Prime Minister, a clear timeline has been set for phasing out fossil fuel-powered vehicles:

* From July 1, 2026: fossil fuel-powered motorcycles and mopeds will be banned from circulating within Ring Road 1.

* From January 1, 2028: the ban will extend to Ring Road 2, with additional restrictions on private fossil fuel cars.

* By 2030: the scope will be further expanded to include Ring Road 3.

These policies not only stimulate consumer demand for electric vehicles but also establish a clear roadmap for the green transition of Vietnam’s urban transportation system.