Update COVID-19 in Indonesia: 365,240 confirmed infections, 12,617 deaths (19 October 2020)
19 October 2020 (closed)
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Domestic motorcycle sales in Indonesia declined 5 percent year-on-year (y/y) to 680,642 units in October 2014 (from the same month last year). Particularly weaker sales of the underbone motorcycle impacted negatively on total October motorcycle sales. As people are concerned about a looming subsidized fuel price hike this month (causing accelerated inflation, thus curbing people’s purchasing power), consumers postpone the purchase of a motorcycle. The government is expected to raise prices of subsidized fuels by almost 50 percent.
Sigit Kumala, Chairman of the Indonesian Motorcycle Industry Association (AISI), expects that domestic motorcycle sales will remain weak for the remainder of 2014. He added that stocks of motorcycles at local dealers are still high.
Cumulatively, a total of 6,760,557 motorcycle units were sold in the first ten months of 2014, a 3.5 percentage point growth from the same period last year. Meanwhile, the Honda motorcycle brand - distributed by Astra International - is still the most popular brand in Indonesia, accounting for a 63 percent market share, followed by Yamaha (31 percent market share). Kumala believes that AISI’s target of eight million sold motorcycles in 2014 can still be achieved despite the looming higher prices of subsidized fuels.
Accelerated inflation, brought on by higher fuel prices, is expected to lead to a 10 percent decline in motorcycle sales during three months after the implementation of higher subsidized fuel prices amid declining purchasing power. Moreover, due to higher logistics costs (distribution of motorcycles to dealers) price tags on motorcycles will be raised as well.
As for the motorcycle sales forecast for 2015, Kumala expects that the number will be more-or-less similar to this year’s target of eight million units (implying a turnover of about IDR 96 trillion or USD $8 billion).
Indonesian Motorcycle Sales:
|Motorcycle Sales in Indonesia
| - Honda
| - Yamaha
¹ January-October 2014 motorcycle sales only
Source: Indonesian Motorcycle Industry Association (AISI)
Similarly, Indonesia’s domestic car sales have slowed as well. In the first ten months of 2014, the country recorded a total of 1.04 million car sales, only 1.6 percent higher than the same period last year, according to temporary data from the Indonesian Automotive Industry Association (Gaikindo). Both car and motorcycle sales inform about consumer confidence in Southeast Asia’s largest economy.
• Growth of motorcycle (and car) sales in Indonesia has declined amid slowing economic growth and this month’s looming subsidized fuel price hike (which will cause accelerated inflation)
• Honda remains the dominating market leader regarding motorcycle sales in Indonesia