Indonesia 2021. Two-Wheeler Industry Accelerates in November (+95%)

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Indonesian Motorcycles Industry accelerates and November sales boomed 95%. Year to Date November sales were 4.8 million, up 36.9% vs the 2020 and down 15.9% vs the 2019. The Government is studying new incentives for electric vehicles to revamp the essential plan to replicate ICE vehicles is short.

Motorcycles Market Trend 2021

The Indonesian economy grew at a notably softer pace in Q3, despite upbeat exports and higher commodity prices, as a surge in Covid-19 cases in July and August and subsequent harsh lockdowns weighed on the recovery. A marked deceleration in domestic demand growth was behind the reading, with private consumption, public spending and fixed investment all weakening. That said, conditions have improved so far in Q4 amid a relaxation of restrictions, as suggested by a jump in the manufacturing PMI in October. 

The two wheeler industry, actually the third largest in the World, tried to react this year, after the deepest fall in decades reported during the 2020, However, recovery was not easy, with restrictions for production and distribution caused by anti-covid measures and a consumer demand, lower than expected particularly in the Q3.

A recovery is in place after that the first half ended with 2.5 million sales (+30.6% vs the correspondent period 2020, but down a deep 24.6% vs the 2019) and Q3 sales up again 36.1%, but is not enough to balance the deepe lost reported last year.

Sales are accelerating in the Q4 with October up 43.1% and November booming (+95.1%) and the 2021 will be over the 5 million sales again, a little better than expected, although difficulties in the logistic distribution, surging price for raw materials and energy.

Year to Date November sales were 4.8 million, up 36.9% vs the 2020 and down 15.9% vs the 2019.

In the 2022 the market is expected to keep recovering towards the 6 million sales reaching the pre-covid level, while the Government is studying new incentives for electric vehicles to revamp the essential plan to replicate ICE vehicles is short terms. So far, the Big Players (all Japanese manufacturers) have ignored the government recommendation to invest in the electric propulsion development.

Looking at the competitive arena, the market is dominated by Japanese manufacturers, all locally producing (and exporting), holding over 95% of market share. Among them, Honda is market leader with a wide gap over the followers, Yamaha, Kawasaki and Suzuki.