Indonesian Motorcycles Industry accelerates. 2022 sales have been 5.4 million (+4.4%) confirming the third place in the World with the best level out of last three years.
Indonesian Motorcycles Industry Trend and Perspectives
Indonesia’s economy is expected to grow by 5.4% in 2022 and by 5.0% in 2023, according to a report by the Asian Development Bank (ADB). Inflation, which averaged 1.6% last year, is forecast to rise to 4.6% in 2022 because of higher commodity prices and the recent fuel price increases. It is projected to be almost 6.0% through June 2023 and to ease to below 4.0% by end 2023.
Consumer spending is robust, and commodity exports have boomed. However, high commodity prices have also spurred inflation. For 2023, the risks are on the downside due to slower global growth, global financial volatility, tighter macroeconomic policy in Indonesia, and continuing shocks from the Russian invasion of Ukraine.”
This economic environment has not supported enough the 2-wheeler industry, which started the year declining (first half sales at -7.4%).
However starting in July the market recovered with a fast pace and was able to more than offsett the first half lost. Full Year 2022 sales have been 5.4 million (+4.4%) confirming the third place in the World with the best level out of last three years.
The positive note is the electric vehicles growth, while L1 segment (equivalent to ICE vehicles with below 50 cc) up 70.7% and the L3 segment up 39.3%. However, even this data is below expectations.
The Japanese manufacturers dominate the industry and Honda is the leader with over 68% of market share, although last year sales increased only 1.8%%. Honda is under Yamaha (+10.2%) and new electric start ups – like Gesits – attach. However, they prefer to postpone the introduction of electric scooter to protect the current profitable line up.