Vietnam startup seeks slice of third-largest EV motorbike market
Vietnamese electric motorbike maker Dat Bike secured $22 million in fresh funding as it takes on established players such as Honda Motor and Yamaha in one of the world’s fastest-growing two-wheel electric vehicle markets.
The new capital will be used to expand manufacturing capacity, boost market presence and develop new products, Chief Executive Officer and Founder Nguyen Ba Canh Son said in an interview. Founded in 2019 by Son, a former Silicon Valley engineer who taught himself how to build bikes partly by watching online videos, Dat Bike is scaling operations to meet rising demand for EVs in Vietnam.
The Southeast Asian nation is now the third-largest market for electric two-wheelers globally, behind China and India, according to an August report from MotorCycles Data. The sector saw a 99.2% jump in early 2025, with VinFast Auto entering the global top 10 electric motorbike manufacturers. Last year, 209,000 EV units were sold in the country, the report said.
Motorbikes are an essential part of Vietnam’s economy and daily life, and gas-powered vehicles still dominate the streets. In cities like Hanoi and Ho Chi Minh City, where there are an estimated 13.5 million motorbikes on the streets, bike traffic often overwhelms roads, especially during rush hour. However, a growing environmental awareness and supportive government policies are fueling demand for electric alternatives.
Tackling vehicle emissions has become a key priority for the government as air pollution levels in the major cities frequently reach hazardous levels. Earlier this year, Hanoi was briefly named the world’s most polluted city. In July, the government ordered the capital to phase out gas-powered motorbikes in central districts within a year.
It’s the first step in a broader plan to restrict all fossil fuel vehicles in the nation’s capital by 2030. Ho Chi Minh City is moving to replace around 400,000 gasoline motorbikes with electric options starting next year.
The EV motorbike push currently lacks details, such as whether the government will offer subsidies. The biggest challenge, Son said, is the time required for millions of Vietnamese to switch to electric vehicles.
Nonetheless, Vietnamese are increasingly making the move.
« Vietnam’s electric motorbike market has grown increasingly dynamic, driven by pure-EV players such as VinFast, Pega, and Dat Bike domestically, as well as Chinese brands Yadea and Dibao,” said Hong Luu, research department manager for Vietcap Securities. Japanese giants Honda and Yamaha have also begun introducing electric motorbike models, she added.
Motorbike manufacturers are setting up battery swapping stations to « address consumer concerns over charging safety and convenience,” Hong said. Still, obstacles such as the costs of EV bikes and standardization issues remain, she said.
Son said his company plans to boost production from its current capacity of 30,000 units per year to around 100,000 by the end of 2026. It also aims to double its retail footprint to 50 stores this year.
Dat Bike turned a monthly profit for the first time in August, and the company’s 2025 revenue is expected to be 10 times higher than the previous year, Son said, without providing details.
Before this latest round, the company had raised over $25 million in multiple funding rounds since 2021.
Dat Bike is targeting Thailand as its first market outside Vietnam, with a pilot program expected to launch by the end of this year, followed by an official market entry in 2026, Son said.
By Nguyen Kieu Giang – Bloomberg – September 18, 2025