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Royal Enfield Pulls Out Of Vietnamese Market

Scooters Continue to Dominate Vietnam

After four grueling years of trying to establish themselves in the delicate Vietnamese market, Royal Enfield is pulling out of the country after failing to meet sales expectations.

Two-wheeled modes of transportation are very successful in Vietnam. Out of the roughly 93 million residents of the country, there are around 43 million motorcycles. That means that almost half of the population has a bike to ride. Why couldn’t Royal Enfield cement itself as a brand for the Vietnamese people?

First of all, a higher price tag definitely led to lower sales volume for these motorcycles. In their home country of India, RE motorcycles sell like hotcakes due to the extremely low price point thanks to the motorcycles being manufactured at home in India. However, when these bikes are imported from India into Vietnam, they don’t benefit from the tax breaks given from the government trade deals; unlike Thailand where Kawasaki and Honda motorcycles can be imported with ease.

With modern ‘mantis-styled’ scooters dominating the Vietnamese market, it’s obvious that the market is pivoting towards a more modern approach to motorcycle styling when compared to the classic styling found in most Royal Enfield motorcycles.

Although you will no longer be able to purchase new Royal Enfield motorcycles in the country of Vietnam, for those residents that already own a bike, Al Naboodah International (RE’s Vietnamese distributor) promises that they will still support repairs and warranties going forwards.

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