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Third Honda motorcycle production plant in Vietnam

With annual capacity of 500,000 units

Honda Vietnam Co., Ltd. (HVN), a Honda motorcycle and automobile sales and production joint venture in Vietnam, announced plans to build a third motorcycle production plant in Vietnam and this will expand their total annual production capacity by 500,000 units to accommodate consistent and rapidly growing demand of the motorcycle market in Vietnam.

Total Annual Motorcycle Production Capacity to 2.5 Million Units

HVN began motorcycle production in 1997, and by 2011, reached a total annual production capacity of 2 million units. The addition of the third plant will further increase HVN’s production capacity to 2.5 million units.

The motorcycle market in Vietnam has been staidly growing and the market size reached 2.69 million units*2 in 2010, an approximately 20% increase compared to 2009, making it the world’s fourth largest motorcycle market behind only China, India and Indonesia. Motorcycles have been an integral part of people’s daily lives in Vietnam, and further expansion of the market is forecasted as the economy continues to grow. Based on this forecast, HVN determined to build the third plant in order to further strengthen its capability to continue providing products to Vietnamese customers in a timely manner.

Since the start of production in 1997, HVN’s cumulative motorcycle production has reached 9.6 million units and sales has experienced a year-on-year increase for 14 consecutive years. Moreover, HVN’s market share in Vietnam reached 64% in 2010. HVN will continue enhancing its product lineup to fulfill the increasingly diversifying customer needs in Vietnam.