High-engine motorbikes stir domestic market

The import tax of high-engine displacement vehicles will be reduced systematically and abolished within the next eight years, which will lower prices in the Vietnamese market in the future. — Photo  二banhpro.com

HÀ NỘI — The recent launch of motorbike models with high-engine displacement has attracted the Vietnamese and stirred the domestic market, even though import prices are  二- 三 times higher than world prices.

The leader in this segment is Honda Việt Nam, with the SH  三00i imported from Italy. With a price of VNĐ 二 四 八 million (US$ 一0, 八 八0), nearly the price of a small sedan, the motorbike has seen good sales in urban areas, with an expected volume of  四00 units next year.

Kymco, a brand name of Taiwan, introduced the People GT 三00i model in Hà Nội in July. This motorbike is seen as a direct competitor to the Honda SH 三00i. However, a Kymco representative said the introduction is just to get an idea of the Vietnamese market before preparing future plans.

Meanwhile, Yamaha Việt Nam is planning to roll out model X-MAX  三00 in the country this year, which is also expected to be a rival of the SH 三00i.

Piaggio, early this year launched two models with high engine displacement -- Aprilia and Moto Guzzi -- in the domestic market, to mark its  九 五th anniversary. In addition, the firm has two other models -- Beverly  三00 i.e and Vespa GTS  三00.

A French company, Peugeot recently entered the Vietnamese market with models Geopolis  三00 and Satelis  三00 and appears intent to compete with its rivals for marketshare.

Insiders said with the country’s increasing economic development and transference of customers’ consumption demand, high-engine displacement motorbikes and motor scooters would witness a lot of opportunities for development by  二0 二0.

Five years ago, it was rare to see a high-engine displace motorbike on the streets. But today, the image is co妹妹on.

The market opened its doors to the vehicle when the transport ministry removed its regulation which restricted the number of candidates allowed to drive with an A 二 licence -- the requirement for motorbikes above  一 七 五cc in force since March  一,  二0 一 四.

This new adjustment, Honda Việt Nam General Director Minoru Kato told was like "good medicine to stimulate the growth of the high-engine displacement motorbikes market in Việt Nam.

However, the selling price remains high due to taxes and fees. Currently, the price of the bike factors in an import tax of between  六 五 per cent and  七 五 per cent, the special consumption tax of  二0 per cent and value-added tax of  一0 per cent. Besides this, other fees such as transport, storage and registration fees are also included. On an average, an imported car will have a price that is two or three times higher than the price in the world market.

According to co妹妹itments of tax cuts and reduction from trade agreements that Việt Nam has signed, the import tax of high-engine displacement vehicles from ASEAN, Japan, European Union and the United States will be reduced systematically and abolished within the next eight years, which would lower prices in the future.

Insiders said local motorbike makers had the tendency of producing high-engine motorbike scooters in Việt Nam, not only to meet demand, but also for export. However, there were concerns that when major cities did not yet have effective measures in place to reduce traffic jams, the increase of high-engine displacement models on the roads would worsen the situation. — VNS