Recently, High City Mornington became Japan's first female prime minister, shouldering the burden of the whole country's "expecting the economy to recover" to take office immediately. However, just as she took office, a "coursework" sprinkled her political blueprint, which is the Vietnamese government's "fuel motorcycle ban" to the Japanese government.

Motorcycles are the most commonly used means of transportation for Vietnam

The Japanese government and some Japanese companies have issued a warning to Vietnam, stating that Hanoi's ban on fuel-powered motorcycles starting next year "will cause hundreds of thousands of jobs and destroy a US$4.6 billion market." You know, 8 out of every 10 motorcycle riders in Vietnam ride Honda. This Japanese giant sold 2.6 million motorcycles in Vietnam last year. With four factories, nearly 2000 dealers and 200 parts suppliers, it supports an industrial empire worth billions of dollars.

More importantly, due to the strong rise of new energy vehicles in China, Honda Motor's global sales have experienced a decline, and now it relies entirely on the motorcycle business to "recover." For Honda, motorcycle profits in the Southeast Asian market account for a large proportion of total profits, and Vietnam is the world's largest motorcycle market, which means that the Vietnam government's "motorcycle ban" directly sentenced this business giant to "death."

To this end, the Japanese government rushed like ants on the hot pot, before also let the embassy in Vietnam send a protest letter, demanding "at least two-three-year transition period"; while motorcycle manufacturers such as Honda, Yamaha, Suzuki also wrote a joint letter warning that "hundreds of thousands will be unemployed", and even privately spoke "to reduce Vietnam's production capacity".

Early City has just taken office.

For Takashi Saami, this is simply a "rollover as soon as she took office." People originally expected her to stimulate Japan's economic growth, but now one of the "pillars" of the manufacturing industry has a big problem. If these Japanese companies reduce production capacity in Vietnam, it will directly affect Japan's domestic parts and components exports, which will in turn affect the employment of small and medium-sized enterprises in Japan. To make matters worse, Gao Shi's coalition government has only 119 seats in the Senate, less than half of which has 125 seats. It originally hoped to rely on "tax cuts and employment promotion" to win votes. Now that the manufacturing industry has suffered a setback and the economic data is poor, the ruling support rate is afraid that it will inevitably fall, which will undoubtedly give her ruling foundation a "heavy blow".

The "collapse" of Japanese motorcycle manufacturers in Vietnam is precisely an excellent opportunity for Chinese electric motorcycles to enter the market. Many people think that "electric motorcycles are just replacing batteries", but China's rapid breakthrough in the Southeast Asian market relies on Japan's core advantages that cannot be compared with. This is the "accumulation" of China's new energy technology accumulation for more than 30 years.

Electrical market in Vietnam

While Japanese motorcycles were still relying on "fuel engines" to earn their fortune, China's electric motorcycles had long understood the "three electric systems." For example, the electric motorcycles customized by China electric motorcycle brands for the Southeast Asian market use blade battery technology decentralized by BYD, and the motor power of some brands is directly comparable to that of gas-fired motorcycles. Behind this is the "technology spillover" of China's number one sales of new energy vehicles in the world for nine consecutive years. The decentralization of core components used in new energy vehicles, such as batteries, motors, and electric drives, to electric motorcycles is simply a "dimensionality reduction blow."

Moreover, China has obvious advantages in its supply chain. Batteries can even be placed on the same day and delivered on the same day. The production cycle of an electric motorcycle can be compressed to within 4 days, and the cost is lower than that of Japanese companies.

In addition, when the Japanese enterprises were still stubbornly pushing the "Japanese standard", the Chinese enterprises had long "entered the country as usual."For example, according to the rainy climate in the southeast, the electric motors were added "waterproof motors" and "sliding-proof tires", after-sales networks can also cooperate with local enterprises, some remote areas of Southeast Asia can even repair cars in the villages, these advantages are not comparable to Japanese enterprises.

China Two-wheeled Electric Vehicles

However, although China's electric motorcycles are now in good shape, they have to learn from the "painful lessons" of 20 years ago. At that time, China motorcycles also rushed into Southeast Asia at low prices, and their market share was even stronger than now. Japanese motorcycles sold for US$2000, while China's motorcycles only US$700 to 800.

But later, in order to grab the market, enterprises went crazy to fight price wars: inferior bearings were used, recycled materials were used for plastic parts, and even corners were cut for brake lines. As a result, the repair rate of Chinese motorcycles soared. People bought cars and repaired them every day, and finally they all switched back to Japanese motorcycles. Chinese enterprises finally had no choice but to withdraw from the Southeast Asian market. Now switching to the new energy track, Chinese companies must learn lessons and rely on quality to win a market that can be stable.

In the future, with the rollout of Vietnam's motorcycle ban, Chinese electric motorcycles will have a bigger stage in Southeast Asia, and there will be more "excellent opportunities" in China. After all, only those who are well prepared can catch fleeting opportunities.