Indonesia – The Leading Players for Automotive Industry in the Southeast Asia
Indonesia is one of the largest markets for two-wheelers vehicles in the world, for motorcycles market in Indonesia is projected to grow by 10.91% during 2022 – 2026 resulting in a market volume of USD 7.29 billions in 2026. The automotive industry in Indonesia is still a promising sector and contributes significantly to boost the nation’s economic growth.
Motorcycles are popular mode of transport in Indonesia due to their affordability and efficiency, which naturally lead to a high demand for related products and services. This includes a significant need for maintenance and repair supplies, such as lubricants, auto parts, and accessories which further drives the prominence of motorcycle-related sectors within the country’s automotive industry.
Motorcycle sales in Indonesia surged 26% year-on-year to a 16-month high of 598.4 thousand units in July 2024, rising rapidly from a 3.5% gain in the prior month. Sales of motorcycle grew by 17.2% month-over-month, following a 1.1% increase in June 2024. This indicates that Indonesia motorcycle market is experiencing substantial and accelerating growth.
Electric motorcycle market in Indonesia has a significant growth in commercial industry in the next following years. It is driven by a combination of government policies, increasing environmental awareness, and technological advancements. As a result, the electric motorcycle sector is expected to become a major player in Indonesia’s automotive industry, reflecting both a shift in consumer preferences and a commitment to environmental sustainability. Indonesian government has set a target of having a total of 13 million electric motorcycles (including converted ones) and 2.2 million electric cars on the road by 2030.
