Indonesia Two-Wheeler
Market is driven by the increasing penetration of affordable two wheelers in
the Indonesia market. The increase in the ease of availing loan and credit
facilities in the country is also driving the market in the forecast years. Indonesia
is one of the fastest-growing economies in Southeast Asia, with a population of
over 270 million people. It is also the fourth most populous country in the
world, making it a significant market for two-wheelers. The consumer market in
Indonesia is driven by a growing middle class, which has been increasing in
size and purchasing power, in recent years. The demand for consumer goods,
including food, beverages, clothing, and electronics, has been growing
steadily. E-commerce has also been growing in popularity, as more and more people
in the country are turning to online shopping. This is leading to the rise in the
last mile delivery services, overall leading to the rise in the demand of
two-wheelers in the country in the forecast years.
Recent Developments
Indonesia government has
announced the allocation of USD 455.88 Mn to subsidize electric two-wheeler
sales through 2024. This subsidy is planned to cover sales of 800,000 new
electric two-wheeler and conversion of 200,000 combustion engine motorcycles. This
will lead to the rise in the adoption of two wheelers in the country in the
forecast period. Similarly, the Damon Motors has partnered with Indonesian
company PT Indika Energys for electric two-wheeler distribution in the Indonesian
market. PT Astra Honda Motor has launched Honda CBR250RR SP in Indonesian
market at the Indonesia International Motor Show 2023. Honda has also launched latest
version of the Scoopy scooter in Indonesia two-wheeler market.
The Indonesian
government has launched various initiatives to support small and medium-sized
enterprises (SMEs), which play a significant role in the country's demand of
two-wheelers from the consumer market. For example, the government has launched
a digital marketing program for SMEs to help them expand their online presence
and this will also influence the adoption of two wheelers in the Indonesia
Two-wheeler Market.
Increasing Urbanization
and Population Growth
Indonesia has
experienced rapid urbanization in recent years, with a growing middle class and
increasing population density in urban areas. As more people move to cities,
the demand for affordable and efficient transportation options has increased,
driving the growth of the two-wheeler market. Two-wheelers, especially
motorcycles, are popular in Indonesia due to their affordability, fuel
efficiency, and maneuverability in heavy traffic. The adoption of two-wheelers
in the market is expected to rise as the demand for two-wheelers in the
Indonesia Tire Market is increasing. The industrial market in Indonesia is also
growing rapidly, driven by the country's large population and abundant natural
resources. Key industries in Indonesia include oil and gas, mining,
manufacturing, and agriculture. The government has also been investing heavily
in infrastructure, including roads, ports, and airports, which has helped to
spur economic growth and this economic growth is generating new demands for
two-wheelers for daily commute in the country.
Government Policies and Incentives
The Indonesian government has
implemented policies and incentives to support the growth of the two-wheeler
market, including tax breaks for two-wheeler manufacturers and incentives for
consumers to purchase environment friendly two-wheelers. For example, the
government has implemented a program to encourage the use of electric
motorcycles, which are seen as a more sustainable and environment-friendly
alternative to traditional gasoline-powered motorcycles. These policies and
incentives have helped to drive the growth of the two-wheeler market in
Indonesia, making it a more attractive market for manufacturers and consumers
alike. This has improved connectivity within the country and created
opportunities for businesses that operate in the logistics and transportation
sectors. All such factors will influence growth in the Indonesia Two-wheeler
Market.
Changing Consumer
Preferences
Consumer preferences in Indonesia are changing rapidly, with
younger consumers increasingly interested in more advanced and technologically
sophisticated vehicles. Companies that fail to keep up with these changing
preferences risk losing market share. Similarly, most two-wheelers in Indonesia
are purchased through financing. Changes in interest rates or financing options
can significantly impact the demand for two-wheelers.