Vietnam draws major automotive and electric‑bike production from Toyota, Honda and MG

Toyota, Honda and MG are expanding manufacturing operations in Vietnam. Honda will shift production of its UC3 electric motorcycle from Thailand to its Phu Tho plant, with output slated to begin in September 2026. The company currently runs three factories in Vietnam, producing about 2.5 million motorcycles annually and holding over 80 % of the domestic market. Honda also plans to start assembling hybrid cars in the country in 2026.

Toyota Vietnam announced an additional US$360 million investment to build Vietnam’s first hybrid‑vehicle production line, while SAIC Motor’s MG brand is negotiating to open an assembly plant by the end of 2027. These moves come as Vietnam’s auto market is projected to reach roughly 700 000 vehicles in 2026, with domestic production already accounting for about 550 000 units.

Industry analysts note that strengthening local supply chains will be essential for Vietnam to fully benefit from these foreign investments and to meet rising demand for electric and hybrid vehicles.