With over 200 million motorcycles in SEA, of approximately US$15 billion,  the market presents a significant opportunity for electric vehicle (EV) two-wheeler companies aiming to transition consumers from ICE motorcycles to electric alternatives.

Electric two-wheelers are gaining momentum across Asia, particularly in Southeast Asia, where motorcycles and scooters dominate urban transport. Countries like Indonesia, Vietnam, Thailand, and Malaysia are seeing a surge in EV bike adoption, driven by government incentives and shifting consumer preferences.

Investors are increasingly bullish on electric bikes and clean energy, with startups securing significant funding to expand production and infrastructure. The region is also focusing on battery manufacturing and charging networks, which are crucial for scaling up EV adoption.

SEA remains a dominant force in the global motorcycle market. Indonesia, Vietnam, Thailand, and Malaysia are among the top contributors. As of recent data, Indonesia alone accounts for approximately 133 million motorcycle users, representing about 46% of ASEAN’s production volume and 43% of its sales volume .

Carbon Emissions from Motorcycles

India:
India continues to be a significant player in the motorcycle market. In the first half of fiscal year 2025, two-wheeler sales reached 10 million units, marking a notable recovery after six years . This resurgence underscores India’s position as one of the world’s largest motorcycle markets. Motorcycles contribute significantly to India’s transportation emissions. The Bharat Stage (BS) emission norms regulate permissible limits. Under BS2 norms, the limits were:

• Carbon Monoxide (CO): 2.2 g/km

• Hydrocarbons + Nitrogen Oxides (HC+NOx): 0.5 g/km

• Respirable Suspended Particulate Matter (RSPM): 0.08 g/km 

Indonesia:
The Indonesian government aims to reduce carbon emissions by promoting electric motorcycles. If Indonesians collectively switch to electric vehicles, it could lead to a reduction of up to 132.25 million tons of CO₂ emissions.

Vietnam:
Starting January 1, 2025, Vietnam mandates emissions testing for motorcycles and mopeds to control pollution levels. As of 2025, Vietnam has over 74 million registered motorcycles and mopeds, making it one of the highest motorcycle ownership rates globally. Motorbikes and mopeds constitute approximately 96% of all registered vehicles in the country.

Thailand and Malaysia:
Both countries are implementing measures to control vehicle emissions, including promoting electric vehicles and enhancing emission standards. As of November 2023, Thailand had over 44 million registered vehicles, with about half being motorcycles. Malaysia has approximately 16.8 million motorbikes and mopeds as of October 2023, part of a total of 36.3 million registered vehicles in the country.  In 2024, Malaysia’s motorcycle market sales declining by 19.9%  with the electric segment experiencing significant growth, increasing by 306%.

Transition to Electric Two-Wheelers

The shift towards electric motorcycles is gaining momentum:

• Indonesia: The government plans to have six million electric motorcycles on the road by 2025.

• India: The adoption of electric two-wheelers is on the rise, supported by government incentives and stricter emission norms.

• Vietnam: Local manufacturers, like VinFast, are investing heavily in electric two-wheelers, leading to a booming EV segment. 

VinFast’s Leadership in Vietnam’s Electric Two-Wheeler Market

• Market Share Growth: VinFast’s market share in electric two-wheelers rose from 1.2% in 2017 to 10.4% in 2021, with sales increasing from 39,700 units to 288,000 units during that period.

• Dominance in E2W Sales: Vietnamese manufacturers, including VinFast, now account for more than 70% of new E2W sales in the country, with VinFast emerging as the clear leader.

• Technological Advancements: VinFast integrates advanced features into its electric motorcycles, such as IoT technologies like the VinFast E-Scooter app and the Phone-as-a-Key feature in premium models.

Strategic Investments and Expansion

• New Manufacturing Facility: VinFast has received approval for a second battery electric vehicle (BEV) plant in Vietnam, aiming to produce a range of battery-powered vehicles, including electric motorcycles and bicycles, on a 36-hectare site in the Vũng Áng Economic Zone.

• Product Range: VinFast offers a wide range of electric motorcycle models, catering to various segments from affordable to premium options. Their products emphasize durability, efficiency, reasonable pricing, and environmental friendliness.

Environmental Initiatives

• Emission Reduction: VinFast promotes the environmental benefits of switching to electric motorbikes, highlighting that each kilometer traveled by an electric motorbike instead of a gasoline motorbike can help reduce CO₂ emissions by 0.048 kg.

• Incentive Programs: To encourage the adoption of electric vehicles, VinFast offers incentives up to 12 million VND for customers transitioning to electric motorbikes.