(⊙_⊙)
One article per day for Global Humanities and Geography
WeChat public account: Earth Knowledge Bureau
NO.2664-ELECTRIC TWO-WHEELED VEHICLE GOES TO SEA
Text: Crimson Pig
Drafting: Guo Li Cheng / Proofreading: Gu Hanying / Editor: Guo Li Cheng
When you think of Southeast Asia, you may think of the bustling narrow streets, tourists from all over the world, small vendors selling all kinds of food and entertainment, and the streets are lined with shops...... Of course, it is indispensable - a motorcycle that shuttles through the road like a carp crossing a river.
▲Caption: There are many people in Southeast Asia, and there are also many motorcycles
（图：shutterstock）
Viet Nam, with a population of less than 100 million, has 45 million motorcycles, almost one for every two people. The number of motorcycles in Indonesia, Thailand, Malaysia and other countries is also very terrifying. It can be said that Southeast Asia is the kingdom of motorcycles.
▲ Caption: Let's have a little shock first
（图：shutterstock）
However, in recent years, the domestic "little electric donkey" has carved out a world in this motorcycle kingdom.
The home of Japanese motorcycles
Similar to the automotive market, the motorcycle market in Southeast Asia is also dominated by Japanese brands. Taking Viet Nam as an example, Japanese motorcycles such as Honda, Yamaha and Suzuki account for more than ninety percent of local sales. There are multiple factors behind the fact that Japanese motorcycles have been able to occupy the Southeast Asian market.
First of all, Japanese motorcycle companies have been deeply involved in Southeast Asia for many years, and have built factories in the local area to produce products that meet local conditions. Honda established a motorcycle factory in Thailand as early as 1965, and Yamaha's factory in Indonesia was built in 1974. There are many benefits to building a factory in Southeast Asia, which not only reduces production costs, but also allows you to take advantage of ASEAN tariff preferences and export to other Southeast Asian countries.
▼
Secondly, the product power of Japanese brand motorcycles is very good in the Southeast Asian market. Japanese motorcycles have successfully established a brand mentality in the minds of Southeast Asian consumers by virtue of their advantages of high cost performance, durability, fuel efficiency, convenient maintenance and low cost. When they buy motorcycles, they will give preference to Japanese brands.
In addition, Japanese companies are good at "holding together", and they are often Japan companies at the nodes of the entire industrial chain, such as Japan Steel, Sumitomo Chemical, Aisin, Denso, etc. This makes it very convenient and cheaper to repair and maintain Japanese brand motorcycles in Southeast Asia.
▲ Note: A Yamaha motorcycle authorized workshop and sales center in Thailand
（图：shutterstock）
However, Japanese motorcycle companies are more or less the same as Japanese car companies, a bit of a "ship is difficult to turn around", and the transformation is slow on the road of electrification and intelligence of two-wheeled vehicles. Japanese motorcycle companies still rely on traditional fuel motorcycles as the main force, and the number of electric two-wheeled vehicle products launched is small and the price is high.
Take Honda's electric scooter EM1 e: for example: this electric motorcycle has a range of only about 41 kilometers (official website data), equipped with an electric motor with a power of 1.4 kilowatts and a torque of 90 Nm· meters, and is priced at about 40 million rupiah, about 18,000 yuan, 2,600 US dollars...... Honda's similarly specnated fuel scooter costs less than half the EM1 e.
▲ Caption: For Southeast Asian consumers
A cheap and easy-to-pull car is a good car
（图：shutterstock）
If you are a consumer in Southeast Asian countries and want to buy a small scooter with good price, will you choose the Honda EM1 e:? The market highland of electric two-wheelers, Japan motorcycle companies have not been able to occupy, which gives mainland electric two-wheeler companies a huge business opportunity.
Target, Southeast Asia!
As early as 2019, Yadea went overseas to Southeast Asia and established its first overseas factory in Viet Nam. In May this year, Yadea started construction of a new factory in Indonesia, with an estimated investment of more than 150 million US dollars.
Emma, another major manufacturer of electric two-wheelers in China, officially started production in Indonesia in March this year. Other brands, such as Maverick and Nine, have established sales channels with local partners or directly engaged in online and offline activities.
▲Caption: Emma's production base in Indonesia
(Photo: tiktok@aima_global)
So, why Southeast Asia? There are Japanese motorcycle brands that have dominated the market for many years, and then there are rising stars such as Viet Nam's VinFast. It is not easy for Chinese electric two-wheeler brands to break out of Southeast Asia.
▲ Caption: It is worth mentioning
VinFast Viet Nam has not only electric motorcycles, but also electric vehicles
(Photo: VinFast)
This is because the low per capita GDP level of Southeast Asian countries provides a unique soil for the survival of two-wheeled scooters.
Indonesia's GDP per capita in 2023 is about $5,100. Thailand has a slightly higher income level of about $7,300. Malaysia is even higher, about $12,000, which is about the same as China, and is already a rich country after Singapore and Brunei. Viet Nam has only about $4,300. As for Cambodia, Laos, Myanmar, the Philippines and other countries, it is even lower.
▲ Caption: When it comes to Southeast Asia, it is estimated that many people will associate it with "poor"
It is normal for Southeast Asian people with generally low income levels to choose motorcycles as a means of transportation. Taking Honda motorcycle as an example, a two-wheeled small scooter costs about IDR 2~30 million, which ranges from 9,000 to 13,000 yuan. Buying a small scooter like this obviously doesn't need to save too long, and the threshold is much lower than buying a car.
In addition, Southeast Asian countries have a low level of infrastructure, relatively primitive road conditions, and public transportation is also quite backward. Therefore, in the local area, motorcycles have become an essential means of transportation for home travel, work abroad, and even an important means of livelihood. In addition, the fuel consumption of two-wheeled scooters is relatively low, and the fuel cost is more friendly to low- and middle-income groups.
▲ Caption: Riding my beloved motorcycle
It will never be stuck in traffic~
(Photo: Yitu.com)
The combination of the above multiple factors has created a "massive" number of motorcycles in Southeast Asian countries and a huge increase every year.
In 2023, more than 6 million motorcycles were sold in the Indonesian market, ranking first in Southeast Asia; Viet Nam and Thailand, which ranked second and third, also had nearly 3 million and 2 million units. Motorcycle sales across Southeast Asia are approaching the 15 million mark in 2023 and are still growing.
But the way to break the game is in it. The huge number of motorcycles has caused serious carbon emissions and air pollution to Southeast Asian countries. News of severe air pollution in major cities such as Hanoi, the capital of Viet Nam, and Jakarta, the capital of Indonesia, has been searched on the Internet.
▲Caption: According to the World Bank's 2021 data
Emissions from 8 million registered vehicles in Hanoi
30% of airborne particulate pollution
(Photo: Reuters)
In recent years, with the continuous growth of the economy, Indonesia, Thailand, Viet Nam and other countries have gradually introduced the "oil to electricity" policy, through the issuance of car purchase subsidies and other forms to encourage people to buy electric two-wheelers, and gradually eliminate traditional fuel motorcycles.
In 2023, the Indonesian government will introduce a subsidy policy, that is, a subsidy of 7 million rupiah, or about 3,200 yuan, for owners of electric two-wheelers. Thailand has been subsidized by 18,000 baht per car since 22, equivalent to about 3,600 yuan.
▲Caption: Promoting the large-scale popularization of electric two-wheelers through car purchase subsidies
（图：shutterstock）
There is also the cost of fuel, which is also a significant expense for low- and middle-income earners in Southeast Asia to refuel their motorcycles every year.
Although Viet Nam's income level is not high, the price of oil is not cheap at all, gasoline is nearly US$0.9 / liter, and Thailand is about US$1 / liter. Oil-producing Indonesia and Malaysia are relatively low, about 0.6 or 0.4 US dollars / liter, which is not cheap.
▲ Caption: It's still a little painful when you pay for refueling
（图：shutterstock）
Despite the low fuel consumption of motorcycles, it also costs a lot of money to drive all year round. In contrast, electric two-wheeled vehicle charging is much cheaper, and it is completely dimensional.
With the huge number of motorcycles in Southeast Asian countries and the annual increase, if we can gradually transition to electric two-wheelers, we will give birth to an incremental market with a wide sea and a high sky. This is the reason why many Chinese electric two-wheeler companies have gone overseas in Southeast Asia.
The first step in a long march
Excessive involution in an industry is often accompanied by endless price wars and cost wars, how to break the involution? The answer is to go to sea, find a market for production capacity, and use the products rolled out of the domestic market to go to overseas markets to reduce dimensionality and attack, "to foreign consumers with a little bit of China's shock".
China's electric two-wheeler companies have advantages in many aspects. Thanks to its role as a major manufacturing country, China's electric two-wheeler industry chain is complete and mature, and upstream and downstream enterprises can support rapid technology iteration and strong capacity supply. The huge production capacity can further dilute the cost of production, and even if tariffs are included, the selling price is very competitive.
▲ Caption: A small electric two-wheeled vehicle, take it
(Photo: Yitu.com)
The fast iteration of products and technologies is another magic weapon for Chinese electric two-wheeler companies. Yadea, Emma, Nine, Mavericks and other companies have been working in the field of electric vehicles for a long time and have invested huge resources in R&D. In contrast, Honda, Yamaha, Suzuki and other Japanese motorcycle manufacturers are still "oil-based", and the number of electric two-wheeler products is small and not enough attention.
If electric two-wheelers are to gradually replace fuel motorcycles and gradually increase their penetration rate, they must meet the usage habits of local consumers in Southeast Asia. Southeast Asian users have a long commuting distance, so there is a high demand for the top speed and cruising range of the car.
▲Caption: A nimble and light motorcycle
It is an excellent cost-effective means of transportation in Southeast Asia
(Photo: Yitu.com)
Chinese electric two-wheeled vehicle companies have taken the lead in the technical strength of motors, electronic controls and batteries, and Yadea, Emma and other companies have launched two-wheeled motorcycle products with a maximum speed of more than 50 km/h and a range of more than 100 kilometers, and the price is also quite friendly.
On Yadea Viet Nam's official website, an electric motorcycle with a range of about 150 kilometers and a maximum speed of 50 kilometers / h is priced at about 230 million Viet Nam dong, or about 6582.87 yuan, and its specifications are quite close to the similarly priced small-displacement Honda pedal or curved beam motorcycle.
▲ Note: At the price of 6,005, will you choose an electric or a petrol car?
(Photo: YADEA)
In contrast, Yamaha's electric motorcycle NEO'S sold in the Viet Nam market is priced at 49,000 Viet Nam dong, about 14,000 yuan, while the range is only 72 kilometers, which is about half of the former, and the maximum power of the motor is also lower.
▲ Caption: Domestic electric motorcycles are instantly fragrant
(Photo: YAMAHA)
In addition, China's electric two-wheelers also have more advantages in intelligence. Yadea's electric motorcycle launched in Viet Nam supports mobile APP/Bluetooth unlocking, remote control, GPS positioning/navigation, and battery monitoring and many other functions, which can provide car owners with a better driving experience.
▲ Picture: The mobile APP interface of Yadi Electric Motorcycle in Viet Nam
(Photo: YADEA)
At present, mainland electric two-wheeler companies have gained a firm foothold in the promising market of Southeast Asia, but in the face of Honda, Yamaha, or local brands, this is still only the first step in a long march.
We must not repeat the mistake of Chinese motorcycles losing to Southeast Asia - due to the internal friction of the price war to reduce the quality of products, and finally lose the reputation and market that have been established with great difficulty.
In Southeast Asia, where opportunities and challenges coexist, a number of electric two-wheeled vehicle companies such as Yadea, Emma, Luyuan, Tailing, Xinri, Maverick, and No. 9 in the past ten years have successfully fought in China so far, and they still need to strive for stronger product strength and better after-sales service, so as to leverage this huge market that has been entrenched by Japanese motorcycle brands for many years.
*The content of this article is provided by the author and does not necessarily represent the position of the Earth Knowledge Bureau
Cover: Yitu.com
END