Sales of motorcycles in Indonesia showed an improvement ahead of the Idul Fitri celebrations in late June (a popular period to purchase a motorcycle unit). Based on the latest data from the Indonesian Motorcycle Industry Association (AISI) motorcycle sales grew 15.16 percent year-on-year (y/y) to 531,496 units in May 2017, the highest growth rate since August 2014. On a monthly basis motorcycle sales in Indonesia grew 36.96 percent (m/m).
The strong growth of motorcycle sales in Indonesia in May 2017 is particularly attributed to stable prices ahead of the Idul Fitri (also known as Lebaran period) in the last week of June, when millions of city people visit the regions to spend some days with their families. Motorcycle sales tend to climb ahead of this exodus driven by discount offers during the Ramadan period (the holy fasting month).
May motorcycle sales in Indonesia were led by Astra Honda Motor (+16.4 percent m/m to 394,751 units), Yamaha Indonesia Motor Manufacturing (+8.9 percent m/m to 122,186 units) and Suzuki Indomobil Sales (+174.2 percent m/m to 8,526 units). Meanwhile, sales of Kawasaki and TVS declined.
Motorbikes are hugely popular in Indonesia as they are more affordable compared to cars and can be more efficient in the big cities where traffic congestion is the rule rather than the exception. In full-year 2016 a total of 5.93 million motorcycles were sold in Indonesia, down from 6.48 million motorcycles in 2015 and 7.87 million in 2014. This declining trend is attributed to consumers' weakening purchasing power brought about by the economic slowdown of Indonesia in the 2011-2015 period (a slowdown that is, among other matters, caused by sliding commodity prices).
Thomas Wijaya, Marketing Director at Astra Honda Motor, said rising motorcycle sales show people's purchasing power has improved in Indonesia. This improvement comes on the back of Indonesia's accelerating economic growth as well as on stable prices of food crops ahead of the Ramadan/Idul Fitri period. This means people have more money available for a motorcycle purchase.
Motorcycle Sales in Indonesia:
¹ January-May 2017
Sources: AISI & Astra International