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Superior rides

Released at: 08:05, 18/05/2017

Superior rides

Photo: Viet Tuan

PEGA, a Vietnamese electrical motorcycle maker, expects to create a revolution in quality and technology in the market.

by Huyen Thanh

A local electrical motorcycle manufacturer, PEGA, has announced it poured billions of Vietnam dong into its new product launch in late April. Like Vietnamese shoemaker sShoe, the local brand has invested significantly in all of its product value chains since its establishment. Previously known as HKbike, PEGA is the new brand the company has made efforts to familiarize among local customers. With the launch of four new products, it expects to create an image of quality in the minds of local customers in the context of low-price and low-quality electrical motorcycles becoming popular. 

CEO Le Hoang Long said that the former name was inconsistent with the company’s new goal of reaching the global market, so it was changed to PEGA, short for Pegasus, a white horse in Greek mythology, and expresses its mission of “producing the most beautiful products consistent with the demand of customers and applying modern technology.” In talking about the rebranding, Mr. Hoang Tung, founder and Manager of Pizza Home, said that an enterprise only changes its brand when it’s trying to create a turning point in its business strategy or when its ownership changes. In the case of PEGA, a rebranding was necessary. 

To realize its mission, the brand researched customers and researched and developed products, design, production, distribution, and marketing. The four new products launched in April were the result of a four-year research and development effort at the company. In 2017, PEGA also invested hundreds of billions of Vietnam dong in building a 15,000 sq m assembly plant in Yen Dung district, northern Bac Giang province. The plant has a capacity of 1 million products a year, while the local market produced 500,000 in 2016. Mr. Long believes they can meet demand in the domestic market within three years. 

However, PEGA faces rivals from China that focus on low-priced products. Imported electric motorcycles account for 80-90 per cent of all sales while PEGA holds just 10 per cent. Its goal is to account for 30 per cent this year. “It will be a challenge for the brand to reach this goal,” according to CEO of the Masso Group, Mr. Nguyen Trung Thang. “The brand must compete with rivals from China in terms of price.” With such high prices, of at least VND9 million ($430), the brand needs do more, not only produce high-quality products. 

Mr. Long remains confident of securing a 30 per cent market share. Its rivals only care about cheap products and not on quality or after-sales services. “We don’t follow any price strategy,” he said. “We invested in gaining product quality and top services. We also focused on design, and we will compete with our rivals.” 

The brand recently announced it will create a revolution in electric motorcycles in quality and technology with a high localization ratio in production. All new products are to apply modern technology, such as sturdy motors that can cover 80-100 km per charge and ride comfortably in floods without having water enter the exhaust. “We will connect with leading technology manufacturers like Bosch, Panasonic, and Samsung,” Mr. Long said. “We will also connect with foreign-invested enterprises from Japan and Thailand in Vietnam to produce components. The localization ratio of our vehicles will be 35 per cent in components and 85 per cent in value.” 

A 30 per cent market share would make PEGA the leading brand in the market but making Vietnamese customers more aware of its products is a challenge for the brand, as the preference for foreign products remains strong. “The brand needs to win the trust of customers,” said Mr. Thang. “In particular, it needs to create excellent viral marketing campaigns in the first year of this new launch.” 

It seems the brand has seized an opportunity in using images of Vietnamese rising star Son Tung M-TP for the launch of its four new products. He is considered to have some influence among young people, who are PEGA’s target market. 

The electrical motorcycle maker has 250 showrooms and 500 retail stores at the moment and will have 700 showrooms around the country within three years. “We expect to account for a 50-70 market share in Vietnam in 2017-2018, as the market is predicted to grow in the years to come,” Mr. Long said. “We will then head to regional countries such as Indonesia, Laos, the Philippines, and Myanmar, and perhaps even Europe.”

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