Amid Indonesia’s economic slowdown, the country’s motorcycle sales are most likely to decline in 2015. In the first eight months of 2015 a total of 4,218,089 motorcycles were sold in Southeast Asia’s largest economy, down 21.1 percent (year-on-year) from the same period last year. However, there is one positive fact regarding Indonesia’s motorcycle sales. In August 2015, a total of 622,089 motorcycle units were sold, the highest monthly sales figure since October 2014 and the first monthly growth after seven straight months of decline.
However, Sigit Kumala, Chairman of the Indonesian Motorcycle Industry Association (AISI), remains pessimistic. Initially, the AISI expected Indonesian motorcycle sales to reach about 8 million units in 2015 but this target seems out of reach.
In Indonesia, where motorcycles are a hugely popular means of transportation, sales are led by Honda Motor Co Ltd, Yamaha Motor Co Ltd, and Kawasaki. Similar to car sales, motorcycle sales provide important information about the people’s purchasing power and consumer confidence.
Last June, the central bank of Indonesia (Bank Indonesia) eased regulations regarding minimum down payment requirements for motorcycle, car and house loans in an effort to boost these industries. The new minimum down payment for cars and motorcycles (purchased through credit) was set at 25 percent and 20 percent, respectively (from 30 and 25 percent, respectively, previously). However, these revised regulations seem to have had limited impact.
Indonesian Motorcycle Sales:
|Month||Sold M'cycles 2012||Sold M'cycles 2013||Sold M'cyles 2014||Sold M'cycles 2015|
Sources: AISI & Astra International