Electric bikes and smuggled bicycle components dominate the market

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About 700,000 electric bikes and 50cc motorcycles are sold each year, but analysts say the actual number is 1 million.

Motorbikes and electric bicycles have become increasingly popular in Vietnam in recent years, especially in rural areas.

electric bikes

Smuggled goods, counterfeit goods are occupying the market, causing large losses of trillions of tax dollars for the state budget.

Mr. Doan Ngoc Linh, CEO of Pega Manufacturer, said that 90% of existing electric bicycles and bicycle components on the market have no clear origin.

When asked about the origin of the figure, Mr. Linh said the calculation is based on statistics given annually by state management agencies.

In 2019, about 700,000 electric bicycles and 50 cc motorcycles were sold in Vietnam, including the number of anti-counterfeit stamps issued by state management agencies. But the real figure is no less than 1 million products, he added.

Meanwhile, a senior executive of Yadea said that in Vietnam there are more than 5 million motorcycles and electric bicycles, accounting for 5% of the total number of two-wheeled vehicles. The electric vehicle industry is growing by 35-40% per year.

He said: “Smuggled products are mainly through border crossings, have no clear origin, or are products produced in the country without registration. “There are no official statistics on the products.”

Meanwhile, ICTNews said statistics from the Vietnam Register (VR) showed that in 2019, 52,938 electric bicycles were manufactured and assembled in Vietnam, while the number of imports was insignificant (40 units).

The number of electric motorbikes produced in the same year was 237,742. This figure is insignificant compared to the millions of products reported by businesses.

The market for motorcycles and electric bicycles in recent times is growing and is considered lucrative.

Most businesses produce electric bicycles before the start of assembly and distribution of electric motorcycles, which became more popular two years ago.

Electric bicycles cost from VND 6-11 million, mainly aimed at students and older people.

Local media cited a report by the market regulator in 2018 showing that there were 3 million motorcycles and electric bikes, but only 10% were put under control.

A representative of a Vietnamese manufacturer said that 80% of products on the market are smuggled goods.

It is estimated that there are more than 2,000 retail outlets for motorcycles and electric bicycles nationwide. Small size models are the most common.