Indonesia Electric Two-Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycle), By Battery Type (Swappable, Non-Swappable), By Range (<50 km, 50-100 km, 101-150 km, >150 km) and By Region, Competition Forecast & Opportunities, 2020-2030F

Market Overview

The Indonesia Electric Two-Wheeler Market was valued at USD 350 Million in 2024 and is expected to reach USD 1.85 Billion by 2030 with a CAGR of 32.3% during the forecast period. The Indonesia Electric Two-Wheeler Market is witnessing transformation driven by evolving consumer preferences and technological advancements. The increase in fuel costs and environmental concerns is prompting consumers to shift toward sustainable transportation alternatives. With heightened attention toward urban congestion and air pollution, electric two-wheelers are emerging as a feasible solution, offering low emissions and economic operation. The availability of various models catering to different urban mobility needs further supports market expansion.  The Indonesian Motorcycle Industry Association (AISI) forecasts motorcycle sales to reach between 6.4 and 6.7 million units in 2025, up from 6.3 million units in 2024. This projection reflects a steady recovery and growth in the market.

Consumer preferences are also evolving, with a noticeable shift towards electric two-wheelers. This change is driven by environmental concerns and government incentives aimed at promoting sustainable transportation. The government's initiatives to support electric mobility are contributing to the growth of this segment. According to the Asian Development Bank, Indonesia's middle class is rapidly expanding, with an estimated 52 million people classified as middle-income earners in 2024 . This growing segment has led to increased discretionary spending on mobility solutions, with motorcycles being a preferred choice due to their affordability and low operating costs. The increasing disposable income allows middle-class families to invest in personal transport, with two-wheelers being the most cost-effective option for daily commuting.

Market Drivers

Government Incentives and Policy Support

Subsidies, tax exemptions, and import duty reductions implemented by the Indonesian government are key market enablers. These policies make electric two-wheelers more affordable for consumers and attractive for manufacturers. Financial incentives reduce the cost barrier and support the country's broader sustainability goals. Through long-term planning and electric mobility roadmaps, the government is actively promoting the shift from fossil fuels to electric vehicles, helping scale infrastructure, and encouraging innovation within the sector.

Rising Fuel Prices

The continual increase in fuel costs is driving consumers toward more economical alternatives like electric two-wheelers. For daily commuters, particularly in urban areas, the affordability of operating electric vehicles becomes a major incentive. Electric two-wheelers offer lower maintenance and energy costs compared to traditional gasoline-powered vehicles, making them appealing amidst fluctuating fuel prices. This economic advantage strengthens their value proposition across diverse income segments.

Environmental Awareness

Environmental consciousness among Indonesian consumers is pushing demand for cleaner modes of transportation. The detrimental effects of air pollution and carbon emissions are influencing public behavior and purchasing decisions. Electric two-wheelers, which produce zero tailpipe emissions, align with the growing environmental movement and personal sustainability goals. With rising participation in climate-related initiatives and increased green mobility advocacy, consumers are more inclined to adopt eco-friendly alternatives. The Indonesian government has introduced various incentives to promote the adoption of electric two-wheelers. In 2024, the government removed luxury taxes on electric vehicles for the fiscal year and suspended import taxes until the end of 2025. Additionally, the value-added tax for electric vehicle buyers was reduced from 11% to 1% . These measures aim to increase domestic demand for electric vehicles and attract investment in the automotive sector.

Urban Traffic and Congestion

Electric two-wheelers are ideal for navigating dense urban areas suffering from high traffic congestion. Their compact size, low noise, and agility offer convenient city commuting. With traffic-related delays and limited parking becoming major concerns, electric two-wheelers provide practical and time-saving alternatives. This functionality resonates with young professionals and students who prioritize speed, flexibility, and sustainability in their transportation choices. As the urban population continues to rise, the reliance on two-wheelers is expected to remain a key solution to urban mobility challenges. Data from the Ministry of Transportation indicates that Indonesia had over 110 million registered motorcycles by the end of 2023 

Technological Advancements

Innovations in battery efficiency, electric motors, and smart integration are driving electric two-wheeler adoption. Improvements in charging times, energy density, and durability are making these vehicles more reliable and user-friendly. Features such as app-based diagnostics, GPS tracking, and IoT-enabled services enhance the consumer experience. These technological upgrades are turning electric two-wheelers into intelligent mobility solutions, increasing user satisfaction and market appeal.

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Key Market Challenges

Limited Charging Infrastructure

The scarcity of widespread and reliable charging stations is a significant barrier. Consumers hesitate to adopt electric vehicles without the assurance of accessible charging facilities. In urban and rural areas alike, the infrastructure gap creates uncertainty about range and usability. Despite pilot programs and government efforts, the slow rollout of public charging networks limits potential growth and affects consumer confidence in electric mobility.

Battery Performance and Lifecycle Concerns

Battery degradation, limited lifespan, and replacement costs are major concerns for consumers. Battery reliability affects vehicle range and performance, influencing purchase decisions. Environmental factors such as humidity and temperature further impact battery health. Despite advancements, anxieties around frequent charging cycles and long-term durability persist. These technical limitations hinder mass acceptance and require continuous innovation. The electric two-wheeler ecosystem in Indonesia is still evolving, with gaps in after-sales services and maintenance infrastructure. Consumers often struggle to find qualified technicians or spare parts, especially outside major cities. A weak service network results in lower customer satisfaction and affects brand loyalty. Market players must invest in building robust service frameworks to support widespread adoption and ensure vehicle longevity.

Key Market Trends

Battery Swapping Technology

Battery swapping stations are emerging as an alternative to traditional charging infrastructure. This model enables quick battery replacement, eliminating the wait time associated with charging. It addresses range anxiety and supports commercial use cases such as delivery services. Start-ups and energy companies are piloting scalable battery-swapping networks, offering convenience and promoting electric two-wheeler usage among high-frequency riders. Oyika, a leading provider of Battery-as-a-Service (BaaS), has established over 200 battery swapping stations in Indonesia, primarily within the Jabodetabek area. This network supports the adoption of electric motorcycles by reducing charging time and infrastructure costs .

Smart Connectivity Integration

Electric two-wheelers are increasingly equipped with smart technologies such as Bluetooth connectivity, navigation, and mobile apps. These features allow real-time monitoring of battery status, geofencing, and remote diagnostics. Enhanced user interfaces improve the riding experience, attract tech-savvy consumers, and position electric two-wheelers as next-generation urban transport options.

Growth of Subscription and Leasing Models

Subscription and leasing models are gaining traction as alternative ownership options. These flexible plans reduce the burden of upfront costs and include services like maintenance, insurance, and battery replacement. The convenience and affordability of these models appeal to a broader audience, especially in urban centers, contributing to higher market penetration. The Indonesian government has allocated approximately USD 455 million to subsidize the purchase of electric motorcycles. This initiative aims to support the acquisition of 800,000 new electric motorcycles and the conversion of 200,000 combustion engine motorcycles to electric ones. Each new electric motorcycle purchase is eligible for a subsidy of around IDR 7 million (approximately USD 435).

Design Innovations for Urban Mobility

Manufacturers are investing in vehicle design tailored for city commuting. Lightweight frames, foldable structures, and ergonomic features improve maneuverability and comfort. Stylish, compact, and practical designs cater to consumer preferences for urban lifestyles. The evolution in aesthetics and functionality supports wider acceptance of electric two-wheelers.

Focus on Local Manufacturing and Supply Chain Localization

To reduce dependency on imports and enhance cost competitiveness, companies are localizing production and assembling operations within Indonesia. Government support for domestic manufacturing and the development of EV components is encouraging this shift. Localization efforts improve supply chain resilience, create jobs, and accelerate technology transfer.

Segmental Insights

Vehicle Type Insights

In the Indonesia Electric Two-Wheeler Market, two major vehicle types contribute to market offerings: scooters/mopeds, and motorcycles. Scooters are widely adopted for their ease of use, automatic transmission, and suitability for short-distance commuting. Their compact design and storage options appeal to a wide range of users, including urban commuters and students. Mopeds, characterized by their lightweight build and pedal-assisted functionality, are gaining traction among consumers looking for an economical and eco-friendly mode of transport. Their lower speed limits and efficient energy usage make them ideal for low-traffic areas or suburban usage. Motorcycles, known for higher power output and longer travel range, cater to users who require a blend of performance and efficiency. These vehicles offer versatility across diverse terrains and are often favored by users with longer commutes or heavier daily usage. Each type serves specific mobility requirements, and their presence diversifies the market, accommodating a broad demographic.

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Regional Insights

Western

The Western region of Indonesia, comprising provinces like Jakarta, West Java, and Banten, is witnessing rapid growth in the electric two-wheeler market. This region benefits from a dense population, high urbanization, and advanced transportation infrastructure, making it a prime target for electric mobility adoption. The Jakarta metropolitan area, in particular, is facing rising concerns over air pollution and traffic congestion, encouraging both government bodies and consumers to shift toward electric alternatives. Government incentives, such as tax reductions and subsidies for EV purchases, are aiding market penetration. Furthermore, private players are expanding charging and battery-swapping infrastructure, especially in urban centers. E-commerce and food delivery services are also accelerating the adoption of electric scooters and motorcycles for cost-efficiency and operational sustainability. Growing environmental awareness and robust investment from domestic startups and global OEMs position the Western region as the dominant contributor to Indonesia's electric two-wheeler market growth through 2030.

Central

Central Indonesia, including regions such as Central Java, Yogyakarta, and East Java, is emerging as a promising market for electric two-wheelers driven by growing urbanization and infrastructure improvements. The region hosts key manufacturing hubs and industrial centers, fostering potential for local electric vehicle production and supply chain development. East Java, with Surabaya as a major city, is experiencing rising demand for sustainable transport solutions, supported by local government initiatives and pilot projects promoting electric mobility. Educational institutions and civil society in Yogyakarta are actively promoting environmental sustainability, which influences young consumers to adopt electric two-wheelers. Though charging infrastructure is less mature than in Western Indonesia, collaborative efforts between local authorities and private players are underway to address the gap. The increasing cost of fuel and supportive regulatory framework are likely to push the market forward. Central Indonesia is expected to see steady adoption, with growing contribution to the national EV penetration targets.

Recent Developments

• In 2024, Yadea Technology Group Co., Ltd., a leading Chinese electric two-wheeler manufacturer, announced a significant investment to produce electric scooters and motorcycles in Indonesia. The inaugural vehicle delivery ceremony was held on March 14th, 2024, in Cikarang, Bekasi, Indonesia, marking a monumental milestone for Yadea’s expansion efforts in the Southeast Asian region. ​
• In April 2024, the Indonesian government committed USD 455 million to subsidize the purchase of electric motorcycles. This initiative aims to cover the purchase of 800,000 new electric motorcycles and the conversion of 200,000 combustion engine motorcycles into electric ones. The subsidy program provides an Rp 7 million (approximately USD 435) discount on the purchase of electric motorcycles, significantly reducing the cost barrier for consumers and promoting the adoption of electric two-wheelers. ​
• In 2024, Hero MotoCorp Ltd., an Indian multinational motorcycle and scooter manufacturer, collaborated with Zero Motorcycles Inc., a California-based electric motorcycle manufacturer, to sell Zero's offerings in Indonesia. This partnership is expected to result in the development of a new electric platform, combining Hero's extensive market reach and manufacturing capabilities with Zero's advanced electric motorcycle technology.
• In 2024, Bajaj Auto collaborated with Kawasaki to enhance after-sales service accessibility for its customers in Indonesia. This partnership allowed Bajaj owners to utilize Kawasaki’s extensive service network, addressing concerns about limited after-sales facilities. The collaboration aimed to improve customer satisfaction and strengthen Bajaj’s brand presence in the competitive Indonesian market.

Key Market Players

• PT Astra Honda Motor
• PT Yamaha Indonesia Motor Manufacturing
• Hero MotoCorp Ltd.
• PT TVS Motor Company Indonesia
• PT Viar Motor Indonesia
• Zero Motorcycles Inc.
• Segway Inc.
• Yadea Technology Group Co., Ltd.
• Skutis Corporation
• TAILG Electric Vehicle Co., Ltd.

Report Scope:

In this report, the Indonesia Electric Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Indonesia Electric Two-Wheeler Market, By Vehicle Type:

o    Scooter/ Moped

o    Motorcycle

·         Indonesia Electric Two-Wheeler Market, By Battery Type:

o    Swappable

o    Non-Swappable

·         Indonesia Electric Two-Wheeler Market, By Range:

o    <50 km

o    50-100 km

o    101-150 km

o    >150 km

·         Indonesia Electric Two-Wheeler Market, By Region:

o    Western

o    Central

o    Eastern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Indonesia Electric Two-Wheeler Market.

Available Customizations:

Indonesia Electric Two-Wheeler Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report: -

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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