Motorcycle industry in Indonesia - statistics & facts
Motorcycles are the most popular mode of transportation in Indonesia. In densely populated and traffic-congested urban areas, where public transport does not always allow for door-to-door mobility, motorcycles have emerged as the most efficient mode of transportation. In fact, given their affordability and flexibility for daily commuting, motorcycles remain the most common type of vehicle in the country. Indonesia produces and assembles most of the motorcycles sold domestically and exports some to other Asian countries and around the world. All of this allowed the Indonesian motorcycle market to grow to a total market revenue of about 6.03 billion U.S. dollars in 2022.
Since local production capacity is sufficient to cover the domestic market, exports have become increasingly crucial for producers. The volume of exported vehicles has risen sharply over the past decade. The Philippines is the main destination country for motorcycle exports, followed by Vietnam and Thailand.
Despite the minor share of electric two-wheelers in the country, Astra Honda plans to develop seven electric models by 2030, as part of its carbon neutrality strategy. This dynamic is also reflected within the Indonesian ride-hailing leader, Gojek. Indeed, the company has signed a joint venture agreement with the energy group TBS Energi Utama, with the objective of supplying two million electric motorcycles this decade. The goal of the motorcycle taxi group is to convert the entire fleet into electric vehicles by 2030.
Motorcycle production and sales in Indonesia
Despite a slight drop in 2020 due to the pandemic, the number of motorcycles sold in Indonesia has started to rise again, reaching a total of 5.2 million units sold in 2022. Urban areas have the highest concentration of motorcycles, with East Java accounting for 18.19 million vehicles, followed by Central Java and the Greater Jakarta region. Among these motorcycles, scooters largely dominate the national market, as they are the most suitable for the users' needs. In fact, most users are looking for cheap vehicles with short daily trips at low or medium speed. Therefore, motorcycles with an engine capacity of up to 125cc are the most numerous in the country. In terms of purchasing preferences, consumers tend to go for new vehicles rather than used ones, facilitated by numerous loan options.Since local production capacity is sufficient to cover the domestic market, exports have become increasingly crucial for producers. The volume of exported vehicles has risen sharply over the past decade. The Philippines is the main destination country for motorcycle exports, followed by Vietnam and Thailand.
Leading manufacturers in the Indonesian motorcycle industry
The Indonesian motorcycle market is dominated by Japanese brands, such as Honda, Yamaha, and Suzuki. These brands are not imported but mainly produced locally in the country's factories. Honda, which largely dominates the market with a 73.8 percent market share, operates in a joint venture with Astra International. These entities form PT Astra Honda Motor, which is the sole agency for the production, assembly, and distribution of Honda motorcycles in Indonesia. In 2022, the company generated a net revenue of about 3.96 trillion Indonesian rupiah, the highest since 2017. Over the past decades, the brand has established itself as the absolute market leader, with flagship models such as the Honda Beat or the Honda Vario.Despite the minor share of electric two-wheelers in the country, Astra Honda plans to develop seven electric models by 2030, as part of its carbon neutrality strategy. This dynamic is also reflected within the Indonesian ride-hailing leader, Gojek. Indeed, the company has signed a joint venture agreement with the energy group TBS Energi Utama, with the objective of supplying two million electric motorcycles this decade. The goal of the motorcycle taxi group is to convert the entire fleet into electric vehicles by 2030.
