In Vietnam, surging sales of electric motorcycles and electric scooters are reshaping a two-wheeler market long dominated by Japan's Honda. With 1 in 3 new vehicles sold as electric two-wheelers, Vietnam's homegrown company VinFast is growing rapidly and chasing Honda.

Electrek reported on Nov. 1 (local time) that Vietnam sold 3,021,373 motorcycles and scooters in January to September, up 25.9% from a year earlier.

Over the same period, sales of electric two-wheelers jumped 90.5% to 973,247. They accounted for about 32.2% of total new-vehicle sales. That means 1 in 3 motorcycles and scooters sold in Vietnam is an electric model.

The growth of electric two-wheelers also affected manufacturer sales rankings. Honda stayed No. 1 in Vietnam, but its sales growth rate of 8.4% was well below the overall market's growth. Sales volumes rose, but market share fell.

Behind Honda, sales by Vietnamese EV maker VinFast surged 152.1% from a year earlier, lifting it to No. 2 overall. Japan's Yamaha posted 23.2% growth to rank third, while China's electric two-wheeler company Yadea took fourth place with 53.4% growth. The outlet said two of the top four companies are dedicated electric two-wheeler makers, changing competition that had been led by Japanese manufacturers.

Local government policies for environmentally friendly transport are also influencing the shift. Vietnam is pushing regulations on internal combustion engine two-wheelers to reduce urban air pollution, and the capital Hanoi has prepared measures to restrict gasoline motorcycle traffic in parts of the city center.

Local companies including VinFast are expanding their lineups of electric scooters and motorcycles, widening consumer choices. In a two-wheeler market once centered on internal combustion engines, electric models are starting to establish themselves as a mainstream means of transport.

Honda remains the dominant market leader, however, and it is difficult to say that the growth of electric two-wheelers alone has erased its existing competitiveness.

The outlet said Vietnam's case shows how the popularisation of electric two-wheelers can change established market dominance. It also forecast that the speed of electrification responses by Japanese manufacturers such as Honda will determine their competitiveness going forward.