Indonesian Motorcycles Industry keeps momentum in 2024. After ending the first half down 0.9%, sales accelerated during the second, with year to date October sales at 5.57 (+4.1%). Yadea starts local production.
Indonesian Motorcycles Industry Trend and Perspectives
Indonesia is targeting 5.2% economic growth in 2024, potentially driven by consumption and investment, as highlighted in PwC Indonesia’s latest Economic Update. The report presents mixed sentiments in both the global and Indonesian economies.
Indonesia targets a 5.2% economic growth rate in 2024, despite challenges such as declining commodity prices and economic conditions in China, the key trade partner of Indonesia. Domestic consumption, which accounted for 57% of Indonesia’s GDP in 2023, is expected to remain as the main contributor in achieving this target especially after factoring in an 8% pay rise for 3.7 million civil servants as well as increased spending for election related activities.
The economic impact on the motorcycles industry, the third largest in the world, is relevant and the market is in a positive track since the post-pandemic period.
In the 2024 the market has obviously reduced the speed from a strong 2023 and after ending the first half down 0.9% accelerated during the second, with year to date October sales at 5.57 (+4.1%).
In April 2024, the Indonesian government has committed U$455 million to subsidize the purchase of electric motorcycles aiming to cover the purchase of 800,000 new electric motorcycles and the conversion of 200,000 combustion engine motorcycles into electric ones. The subsidy program provides an Rp 7 million (roughly around US$435.36) discount on the purchase of electric motorcycles. The segment is increasing 96.6% this year, but starting from a very low level.
During the year, the Chinese Giant and EV leader Yadea, announced a huge investment to produce electric scooter and motorcycles in Indonesia.
The inaugural vehicle delivery ceremony, held on March 14th, 2024, in Cikarang, Bekasi, Indonesia, marked a monumental milestone for Yadea’s expansion efforts in the Southeast Asian region.
Situated in Bekasi, West Java Province, the Yadea Indonesia production base encompasses a sprawling area of 28,000 square meters, boasting state-of-the-art facilities and cutting-edge technologies. With an impressive annual production capacity of 300,000 units.
