Indonesia 2021. Two-Wheeler Industry Recovery Get Stronger in August (+48%)


Indonesian Motorcycles Industry recovery is consolidating during the Q3, with July and August sales surged respectively 29.7% and 48.8% vs the correspondent period in 2020. Thus, Year to date August sales have been 3.37 million, up 32.8% vs the 2020 while still down 24.3% vs the 2019.

Motorcycles Market Trend 2021

The recent releases National Economic Recovery Program aimed at strengthening health care capacity and providing financial support to vulnerable households and businesses. The central bank supported these efforts by purchasing government bonds in the primary market, an exceptional but appropriate and temporary move that has ensured financial market stability. To support this plan, Indonesia temporarily suspended its pre-pandemic budget deficit ceiling of 3 percent of GDP until 2023.

However, following the incredible 2020, one of the worst year in the Indonesian motorcycles industry, the new year started again with an almost negative first quarter, with industry sales down in double digit.

In the second quarter the sales speed improved, while remaining quite far from the pre-covid level. Considering the sales in Q2 2020 dropped to only 320.000, in the 2021 the 1.18 million sales represented a huge increase.

However the first half sales, which this year have been 2.5 million, report an increase of 30.6% vs the correspondent period 2020, but down a deep 24.6% vs the 2019.

During the Q3 sales recovery is consolidating and in July and August surged respectively 29.7% and 48.8% vs the correspondent period in 2020. Thus, Year to date August sales have been 3.37 million, up 32.8% vs the 2020 while still down 24.3% vs the 2019.

The Indonesian market, the third globally, is hit by low production level caused by safety measures and consumer goods demand in the country is below the expectations, again due to highest than expected covid 19 impact.

Market leader is again Honda improving volume from the previous year by one fourth, while the first follower, Yamaha increased sales 41.4% and both Kawasaki and Suzuki improved near 80%.

In 2020. Two-Wheeler market down 43.7%. Honda lost 2 million sales

The Indonesian motorcycles industry is the third in the World since almost twenty years representing the primary private transporting sector for people and goods and having a size 6 time bigger than the automotive industry.

The market hit the record at the end of last decade reaching for the first and lonely time the 8 million units sold in a calendar year. Then the market entered in a mature stage and sales declined progressively, down to the 5.8 million scored in the 2017, the lowest level in the last 15 years, when the increase of fiscal duties have further hit the industry.

However, fueled by a quite positive economic trend, in the 2018 and in the 2019 the market has changed the trend taking a positive path. the domestic new motorcycles market ended the 2019 with 6.53 million units, up 1.3% from the previous year.

The market is dominated by Japanese brands, all producing both for local market and to export (mainly in ASEAN, but even in other World’s regions, like South America).

In the 2020 the Indonesian motorcycles industry was one of the worst worldwide, simultaneously hit by economic recession and covid19.

Starting form the second quarter, the measures taken by the Government to protect from Covid19 have hugely impacted the industry with a delay compared with the rest of the World, in terms of virus spread and market fall, but with similar negative impact on the economy and on consumer goods demand.

While in the rest of the World the markets have partially recovered during the second half, in Indonesia the trend worsened month after month with the Q4 2020 reported down near 50% from the correspondent period in the previous year.

The full year 2020 sales have been 3.7 million, down a deep 43.7%, the lowest level in the last 30 years.

Considering Indonesia is the first market in the World for all Japanese manufacturers, the market fall had severe consequence on the global revenues, sales and profit for the Jap Big4.