Strategic Analysis of Yadea Holdings' Response to Competition from Vietnam's VinFast

Now I will write a detailed competition analysis report for you based on the collected data.

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Vietnam’s electric two-wheeler market is experiencing an unprecedented period of growth. In the first half of 2025, sales of electric motorcycles in Vietnam reached

, surging , making it the world’s third-largest electric two-wheeler market, trailing only China (3.2 million units) and India (657,000 units) [1]. This explosive growth is mainly driven by strong policy support from the Vietnamese government – Hanoi plans to implement a ban on fuel-powered motorcycles in some downtown areas starting from July 2026, and gradually expand the ban to fuel-powered automobiles; Ho Chi Minh City has set a target of full electrification of its ride-hailing motorcycle fleet by 2028 [1][2].

In full-year 2025, Vietnam’s motorcycle output reached

, a record high, representing an approximately 10% increase from 2024’s 3.1151 million units [3]. The market structure is undergoing profound changes, with electric models steadily capturing market share from traditional fuel-powered vehicles.

Vietnam’s local brand VinFast holds an absolute dominant position in this transformation wave. In the first half of 2025, VinFast accounted for

in Vietnam’s electric motorcycle market, with global sales exceeding 100,000 units, surging [1][4]. Its Hai Phong plant also set a record high in electric two-wheeler production in 2025 [4].

VinFast’s success stems from its

, covering entry-level to high-end products, which can meet the needs of different consumer groups. In addition, as a Vietnamese local enterprise, VinFast enjoys natural advantages in brand recognition and policy support.

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In the face of VinFast’s strong competition, Yadea Holdings has adopted a

:

Yadea Holdings has established

worldwide, (Vietnam and Indonesia), forming a strategic layout of “global manufacturing, local delivery” [5][6].

• Vietnam Plant
  : With an annual production capacity of
  1 million units
  , it is an important manufacturing center for Yadea in Southeast Asia [6]
• Indonesia Plant
  : Equipped with integrated R&D and manufacturing capabilities, and delivered its first product in 2024 [6]
• Mexico Plant
  : Serves as a strategic hub for the North American market, enabling rapid response [5]

This localized production strategy allows Yadea to:

• Effectively reduce logistics costs and tariff barriers
• Better adapt to local market demands and consumer preferences
• Shorten delivery cycles and enhance customer service experience
• Avoid potential trade policy risks

Yadea Holdings owns

, forming a strong technological moat [7]. The company continues to increase R&D investment, maintaining technological leadership in the following areas:

Technology Field	Yadea’s Advantages
Battery Technology	High-efficiency and energy-saving lithium battery technology, leading driving range
Smart Systems	Smart instrument panel, smartphone connectivity, remote diagnostics
Safety Configurations	Advanced lighting systems, braking systems, anti-theft technology
Design Capability	Has won multiple international honors including the iF Design Award and Red Dot Product Design Award [6]

Yadea has established

in China, and built distribution networks in [7]. This global channel advantage allows Yadea to:

• Diversify risks from a single market
• Achieve economies of scale
• Accumulate international operation experience
• Respond quickly to demand changes in different markets

Yadea has adopted a differentiated product strategy for overseas markets, especially Vietnam:

1. Commuter-Oriented
   : Focus on portable electric bicycles and scooters, in line with the daily travel needs of Vietnamese consumers
2. Price Gradient
   : Provide multi-level product options from entry-level to mid-to-high-end
3. Quality Priority
   : Compete with local brands with the high-quality image of Chinese manufacturing

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Yadea Holdings delivered impressive performance in the 2025 fiscal year (year-end in December):

• Net profit of no less than CNY2.9 billion
  , a
  128% increase
  from the previous year’s CNY1.272 billion [7]
• H2 net profit reached CNY1.251 billion,
  4.3 times higher
  than the same period in fiscal 2024 [7]
• Net profit is expected to further grow to CNY3.493 billion in fiscal 2026, representing an approximate 20% increase [7]

As of the end of June 2024, Yadea held

[7], providing solid financial support for overseas expansion. The company’s financial advantages enable it to:

• Continuously invest in capacity expansion and technological R&D
• Maintain strategic resolve in price competition
• Resist operational risks brought by market fluctuations

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Dimension	VinFast’s Advantages	Yadea’s Advantages
Market Share	55% share in Vietnam’s electric motorcycle market	Global leader in electric two-wheelers
Local Recognition	Strong recognition as a Vietnamese national brand	International brand awareness
Channel Coverage	Well-established local network in Vietnam	Channels in over 100 countries worldwide
Capacity Scale	Hai Phong Plant: 200,000 units (automobiles + motorcycles)	Global production capacity of 25 million units
Technological Accumulation	Emerging brand with rapid development	Over 2,000 patents, mature technology
Cost Advantage	Localized production advantages	Advantages from China’s supply chain

1. Shared Policy Dividends
   : Vietnam’s fuel vehicle ban policy will benefit all electric two-wheeler brands
2. Expanding Market Capacity
   : As the ban implementation approaches, demand for electric two-wheelers is expected to further surge in 2026
3. Shift in Competition Focus
   : From price competition to competition in quality, technology, and service experience
4. Accelerated Industry Integration
   : Brands lacking competitiveness will be eliminated, leading to increased market concentration

• Deepen Manufacturing in Vietnam
  : Utilize established localized capacity to further reduce production costs
• Differentiated Competition
  : Leverage technological advantages to form differentiation in intelligence and high-endization
• Channel Synergy
  : Integrate global channel resources to achieve scale effects
• Brand Image Building
  : Establish consumer trust through quality and services

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In the face of strong competition from Vietnam’s local brand VinFast, Yadea Holdings has adopted a comprehensive competition strategy of

. Relying on strong technological accumulation, sufficient capacity reserves, abundant financial strength, and a well-established global channel network, Yadea is expected to continue expanding its market share in Vietnam and even the entire Southeast Asia region.

Although VinFast temporarily leads in the Vietnamese market by virtue of local advantages and policy support, Yadea’s

– including scale effects, technological barriers, operational experience, and financial strength – provide it with strategic depth for long-term competition. As Vietnam’s electric two-wheeler market continues to expand, competition between Yadea and VinFast will be more reflected as rather than a zero-sum game, and both enterprises are expected to benefit from market growth.

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[1] LinkedIn - “Vietnam’s Electric Motorcycle Market Surges with Policy” (https://www.linkedin.com/posts/adamroe_electrified-mobility-sectors-surge-with-policy-activity-7409392365217705984-uiwa)

[2] VietnamPlus - “Vietnam’s Automotive Market Enters a New Competitive Cycle” (https://zh.vietnamplus.vn/article-post254524.vnp)

[3] Vietnamnet - “Record-breaking motorcycle production fuels a turning point for Vietnam in 2026” (https://vietnamnet.vn/en/record-breaking-motorcycle-production-fuels-a-turning-point-for-vietnam-in-2026-2480435.html)

[4] VinFast Newsroom - “VinFast Hai Phong Plant Rolls Out Its 200,000 Electric Vehicle in 2025” (https://vinfastauto.us/newsroom/press-release/vinfast-hai-phong-plant-rolls-out-its-200000-electric-vehicle-in-2025)

[5] PR Newswire - “Tech-Driven Green Mobility: Yadea Debuts New E-bikes at CES 2026” (https://www.prnewswire.com/news-releases/tech-driven-green-mobility-yadea-debuts-new-e-bikes-at-ces-2026-accelerating-all-scenario-strategy-302655219.html)

[6] EqualOcean - “China’s E-bike Brands Going Global: A Review of 2024” (https://equalocean.com/analysis/2025121921682)

[7] now.com Finance - “【Car Stock Review】E-two-wheeler King Yadea: Citi Targets 83% Upside” (https://finance.now.com/mobile/special/topics/354/article/955699/cat/0)

[8] Mordor Intelligence - “Vietnam Electric Vehicle Market Size & Share Analysis” (https://www.mordorintelligence.com/industry-reports/vietnam-electric-vehicle-market)