Increased inflation, particularly brought on due to higher electricity and food prices, makes people decide to spend their money on other products first, before purchasing a motorcycle. Motorcycles are very popular among the lower middle class segment of Indonesia as it is an affordable transportation unit due to long-term loan structures (although minimum down payments have been raised to 25 percent last year).

About 60 percent of motorcycle sales in February were Honda units. The two other biggest brands in terms of motorcycle sales are Yamaha (30 percent), and Suzuki (6 percent). Honda builds and sells its motorcycles in Indonesia through a venture with Astra International. The latter has a domestic market share of about 60 percent in terms of motorcycle sales.

The association expects that motorcycle sales will continue to show similar sales levels in the months ahead.

         2011        2012        2013¹
Motorcycle Sales in Indonesia
   8,012,540    7,064,457    1,299,439
 - Honda
   4,273,888    4,088,888      799,303
 - Yamaha
   3,136,073    2,423,854      405,153

¹ January and February sales only
Source: Indonesian Motorcycle Industry Association (AISI) and Astra International

Bahas