Bizteka Indonesian MOTORCYCLE Industry market


Industry & Marketing Prospect of MOTORCYCLE in Indonesia

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Industry & Marketing Prospect of MOTORCYCLE in Indonesia, Motorcycle industry in Indonesia has been growing very rapidly. The Indonesian population of over 250 million people living in over 230 islands is tremendously potential market. It is a magnet for motorcycle manufacturers such as Honda, Yamaha, Suzuki, Kawasaki.

The major manufacturers are now continuously striving to enlarge their market share despite the tough market competition, following the coming in large quantities with intense marketing of non-Japanese brands from China, Taiwan and India. Even Those brands have been able to take market share and sales.

Most surprisingly, the producer from Korea and Italy closed its factory even though they have been long in this industry. They are not able to face the onslaught of products, both from inside and outside with a wide range of new variants that penetrated the domestic market.

Although the motor industry is growing rapidly, the industry is highly vulnerable to economic turmoil in the country. In 2015, when the economic growth slowed down, which led to higher domestic interest rates and the weakening of the rupiah, the purchasing power of the motorcycle go down. According to data from the Indonesian Motorcycle Industry Association (AISI) motorcycle sales in the country in the past two years declined sharply.

The motor manufacturer eventually reduce production causing overstocks in the dealers. This condition is more difficult when the government issued Government Regulation (PP) No. 60 of 2016 concerning Types and Rates of Non Tax Revenue (PNPB), which would push the price of motorcycle rise.

Regardingf these issues pushed BIZTEKA to discuss industry prospects and marketing of two-wheeler (motorcycle) in Indonesia. This report is based on two sources, namely primary and secondary data. Primary data is obtained from industry as well as the Indonesian Motorcycle Industry Association and secondary data is obtained from the Central Bureau of Statistics, Data Police Department, as well as data Bank of BIZTEKA – CCI.