Forecast Period
|
2026-2030
|
Market Size
(2024)
|
USD 9.42 Billion
|
CAGR (2025-2030)
|
3.3%
|
Fastest Growing
Segment
|
0-150cc
|
Largest Market
|
Java
|
Market Size (2030)
|
USD 11.6
Billion
|
Market
Overview
The Indonesia Two Wheeler Market was valued at USD 9.42 billion in 2024
and is expected to reach USD 11.6 billion by 2030 with a CAGR of 3.3% during the forecast period. The Indonesian two-wheeler
market is witnessing significant growth, fueled by several key drivers.
Urbanization is leading to increased demand for affordable and efficient
transportation options, with motorcycles and scooters offering a practical
solution to traffic congestion in densely populated areas. Additionally, rising
disposable incomes are enabling a larger segment of the population to afford
personal vehicles, further boosting market demand. 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
Urbanization and Traffic Congestion
As Indonesia experiences rapid urbanization, the country’s cities are facing significant challenges with traffic congestion. This issue has made motorcycles and scooters an increasingly popular choice for urban commuters. Their ability to easily navigate through congested streets and reach destinations faster than cars has made them essential for daily transportation in bustling urban centers like Jakarta. Motorcycles and scooters are well-suited for urban environments due to their smaller size, which allows them to maneuver through traffic jams more effectively than larger vehicles. This has led to a growing preference for two-wheelers, especially for those seeking convenience and time savings in the face of daily gridlock. 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 . This high number reflects the widespread use of two-wheelers across the country, supporting the market's growth and indicating a strong consumer preference for motorcycles as a primary mode of transportation.
Rising Disposable Incomes
The growing disposable income among Indonesians has played a crucial role in expanding the two-wheeler market. As more people gain access to greater financial resources, the affordability of personal transportation has become more achievable. Two-wheelers offer a cost-effective solution, making them an attractive choice for a wider demographic. With rising incomes, consumers are increasingly able to afford vehicles that fit their lifestyle needs, from daily commuting to recreational purposes. This economic growth is also driving interest in electric two-wheelers, as they are seen as a more sustainable and affordable option in the long term. The Indonesian government’s policies that support electric vehicles, such as subsidies and tax incentives, have further increased the appeal of electric two-wheelers. These measures not only make electric models more accessible but also contribute to reducing the environmental impact of transportation, aligning with the global shift toward more eco-friendly alternatives.
E-Commerce Growth Driving Delivery Demand
The rapid growth of the e-commerce sector in Indonesia has created new demand for two-wheelers, especially in last-mile delivery services. As online shopping continues to surge, the need for fast and efficient delivery solutions has become more pronounced. Two-wheelers, particularly motorcycles, are increasingly used for delivery due to their ability to navigate through traffic quickly and their lower operational costs compared to larger delivery vehicles. Both traditional and electric two-wheelers are now essential for businesses that need to meet consumer demands for quick deliveries. In response to this trend, modern two-wheelers are being equipped with advanced technologies such as smart connectivity, GPS navigation, and real-time diagnostics. These innovations not only enhance the efficiency of delivery services but also appeal to the tech-savvy consumer base. The increasing reliance on two-wheelers for e-commerce deliveries has further accelerated the adoption of both electric and internal combustion engine models, making them integral to Indonesia's growing digital economy and expanding transportation ecosystem.

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Key
Market Challenges
Infrastructure Limitations
The lack of adequate infrastructure, including charging stations for electric vehicles (EVs) and sufficient parking spaces, poses a significant challenge to the widespread adoption of two-wheelers in Indonesia. In major cities, the shortage of charging points for electric two-wheelers can deter potential buyers who are concerned about the convenience of charging their vehicles. Furthermore, the absence of dedicated parking spaces for two-wheelers contributes to traffic congestion and safety issues, particularly in urban areas where motorcycles are commonly used for daily commuting. As the number of two-wheelers on the road increases, the existing infrastructure struggles to keep pace, resulting in frustration for both consumers and authorities. Additionally, while efforts to improve the infrastructure are underway, there is still a long way to go in terms of scalability and nationwide coverage, especially in rural regions. Without significant investments in both charging networks and safe, accessible parking options, the growth of the two-wheeler market may be stunted.
Regulatory Uncertainties
Frequent changes in regulations related to emissions standards, safety requirements, and import duties can create uncertainties for manufacturers and affect their operations and planning. Indonesia has periodically updated its vehicle emission regulations and safety standards, which can cause significant disruptions to manufacturers that must adapt to new rules. For example, stricter emission norms for combustion engine two-wheelers can force companies to redesign their products or adjust their production processes, potentially increasing costs. Moreover, import duties on components and finished two-wheelers can fluctuate, depending on government policies, which can impact the pricing strategy and overall profitability for companies operating in Indonesia. Such unpredictability in regulatory frameworks can also deter new entrants into the market and inhibit long-term investment in the sector. Changes in consumer preferences further complicate the regulatory environment. A shift toward four-wheel vehicles, driven by rising incomes or increased traffic safety concerns, may divert attention away from the two-wheeler market. Additionally, with new alternative modes of transportation such as shared mobility services and public transport improving, these changing trends could decrease the demand for private two-wheelers, further challenging the market’s growth trajectory.
Key
Market Trends
Shift Towards Electric Two-Wheelers
There is a growing trend towards the adoption of electric two-wheelers in Indonesia, spurred by both environmental awareness and government incentives. As the country seeks to reduce its carbon footprint, electric vehicles (EVs) are increasingly being seen as an eco-friendly and cost-effective alternative to traditional internal combustion engine (ICE) two-wheelers. These electric models offer lower operating costs, as they typically have fewer moving parts, reducing maintenance expenses. Additionally, with rising fuel prices, electric two-wheelers present an appealing solution for consumers looking to cut down on their daily commute costs. Government initiatives, such as subsidies and tax breaks, further encourage the shift towards electric two-wheelers, making them more accessible to the average consumer. As charging infrastructure expands and the technology matures, the adoption of electric two-wheelers is expected to accelerate in the coming years. 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.
Integration of Smart Technologies
Modern two-wheelers are increasingly being integrated with smart technologies to enhance the rider experience. Features such as GPS navigation, smartphone connectivity, and real-time diagnostics are becoming standard offerings on new models. These technological advancements not only provide convenience but also contribute to safety and efficiency, attracting a tech-savvy consumer base. Smart connectivity allows riders to link their smartphones with the bike, offering features like ride statistics, maintenance alerts, and even theft prevention through GPS tracking. Furthermore, the incorporation of advanced safety technologies like anti-lock braking systems (ABS) and traction control adds an extra layer of security. As consumer demand for personalized experiences grows, manufacturers are also offering customizable options such as different color schemes, accessories, and performance upgrades. This customization trend allows riders to personalize their bikes to match their unique preferences, adding to the appeal of modern two-wheelers. 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 .
Rise of Shared Mobility Solutions
The rise of shared mobility platforms is a key trend shaping the Indonesian two-wheeler market. With the increasing demand for affordable, flexible transportation, many consumers are turning to rental services for short-term mobility needs. This trend is particularly strong in urban areas, where traffic congestion and parking issues make owning a vehicle less practical. Companies offering two-wheeler rentals are expanding, providing consumers with the convenience of using a bike for short commutes or errands without the responsibility of ownership. This shift toward shared mobility solutions is not only transforming how people use two-wheelers but also expanding the market beyond traditional ownership models. Additionally, this trend is being supported by the rise of ride-hailing services, which rely heavily on two-wheelers for quick and cost-effective last-mile delivery. Manufacturers are responding by developing models that are well-suited for the shared mobility market, focusing on durability, ease of use, and fuel efficiency.
Segmental
Insights
Vehicle
Type Insights
The Indonesian two-wheeler market is divided into several segments, each addressing distinct consumer needs and preferences. Scooters are widely used in urban environments, prized for their fuel efficiency and ease of maneuvering through dense traffic. These vehicles are ideal for short-distance commuting, particularly in cities where congestion is a daily challenge. With automatic transmissions, scooters provide convenience for riders of all experience levels, making them a preferred choice for daily transportation. Mopeds, a subset of scooters, are lightweight and economical, attracting younger riders and those seeking a budget-friendly option for short trips. These vehicles are commonly used in both urban and rural areas, where their simplicity and low maintenance make them an appealing choice for first-time buyers or individuals in search of an affordable mobility solution. Motorcycles cater to a different consumer group, offering higher engine capacities and greater speed. These vehicles are used for a variety of purposes, ranging from long-distance travel to commercial activities such as deliveries. Their versatility makes them suitable for both urban and rural settings, with their ability to handle various road conditions being particularly valuable in less developed regions.
In rural areas, motorcycles are often the primary mode of transportation due to their robustness and capability to navigate rough terrains. Urban consumers also use motorcycles for longer commutes or as part of the growing gig economy, where motorcycles serve as a key component of delivery and ride-hailing services. The demand for two-wheelers is driven by factors such as convenience, affordability, and changing lifestyles. Many consumers are drawn to the practicality of two-wheelers, which offer faster travel times in crowded cities compared to cars and public transportation. 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). The rise of urbanization and a growing middle class also contribute to the increasing adoption of two-wheelers as primary modes of transport. Consumers are seeking vehicles that are easy to maintain, affordable to operate, and capable of meeting their daily commuting needs. Manufacturers are responding to this demand by offering products designed to address specific market segments, incorporating features such as improved performance, safety features, and enhanced comfort. This segmentation allows the market to cater to a wide range of riders, from those seeking an economical, everyday vehicle to those desiring a more powerful option for diverse uses.

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Regional
Insights
Java accounts for a substantial portion of total two-wheeler sales, driven by the heavy reliance on motorcycles for daily commuting and commercial use. The sprawling metropolitan areas, including the capital city and surrounding industrial zones, create a continuous demand for affordable, efficient, and versatile transportation solutions, with motorcycles being the preferred choice due to traffic congestion and limited parking space. The region's infrastructure development, combined with government support for cleaner, electric two-wheelers, further stimulates market growth. Consumer preferences in Java also lean toward scooters with automatic transmission, which offer convenience and ease of use in stop-and-go city traffic. This preference has encouraged manufacturers and distributors to focus their marketing and distribution strategies heavily in this region.
Sumatra stands as the second dominant market for two-wheelers, propelled by its emerging urban centers and expanding middle class. The region's economic growth, fueled by sectors such as agriculture, mining, and manufacturing, contributes to rising disposable incomes and increased vehicle ownership. While Sumatra's population density is lower than Java’s, the island's large geographic area and developing road networks encourage two-wheeler usage to access remote areas and connect smaller towns. Motorcycles serve as essential vehicles for personal transport and small business activities, including delivery and logistics services, given their ability to navigate narrow and less-developed roads. The government's initiatives to promote electric motorcycles have also begun to impact Sumatra's market, albeit at a slower pace compared to Java, mainly due to infrastructure challenges and limited charging facilities. Nonetheless, awareness and adoption of environmentally friendly vehicles are gradually growing, supported by local incentives and rising fuel prices. In rural and semi-urban areas of Sumatra, manual transmission motorcycles still hold strong appeal for their robustness and fuel efficiency on longer, less predictable journeys.
Recent
Developments
- Geely, a Chinese automotive manufacturer, has re-entered the Indonesian
market after a nine-year hiatus. In January 2025, Geely introduced the EX5
electric vehicle at the Indonesia International Motor Show. Initially, the
units were fully imported from China, with plans to commence local assembly at
Handal Indonesia Motor's facility in Purwakarta, West Java, in the third
quarter of 2025.
- In July 2024, Oyika signed an agreement with Thunder Plus to integrate
its range of two-wheeler and three-wheeler fast chargers into Oyika's battery
swapping stations across Southeast Asia. This collaboration aims to enhance the
charging infrastructure for electric vehicles, supporting the growth of the
electric two-wheeler market in the region.
- In 2024, Chinese electric scooter manufacturer Yadea has established a
production facility in Cikarang, Bekasi, Indonesia. The 28,000-square-meter
plant boasts an annual production capacity of 300,000 units, marking a
significant investment in Southeast Asia. This move aims to cater to the
growing demand for electric two-wheelers in the region.
- 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
- PT Suzuki Indomobil Motor
- PT Kawasaki Motor Indonesia
- PT Viar Motor Indonesia
- PT Gesits Technologies Indo
- PT Triangle Motorindo (Brand
owner of Viar)
- PT Indomobil Sukses
Internasional Tbk
- PT Terra Motors Indonesia
- PT Yadea Teknologi Indonesia
By Vehicle
Type
|
By Engine
Capacity
|
By
Region
|
|
- 0-150cc
- 150-250cc
- Above 250cc
|
- Java
- Sumatra
- Kalimantan
- Sulawesi
- Bali and Nusa Tenggara
- Maluku and Papua
|
Report
Scope:
In this
report, the Indonesia Two Wheeler Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Indonesia Two Wheeler Market, By Vehicle Type:
o
Scooter/Moped
o
Motorcycles
·
Indonesia Two Wheeler Market, By Engine Capacity:
o
0-150cc
o
150-250cc
o
Above 250cc
·
Indonesia Two Wheeler Market, By Region:
o
Java
o
Sumatra
o
Kalimantan
o
Sulawesi
o
Bali and Nusa Tenggara
o
Maluku and Papua
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Indonesia Two Wheeler Market.
Available
Customizations:
Indonesia
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).
Indonesia
Two Wheeler Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]