Indonesian Motorcycles Industry in 2025 is losing terrain. In the third quarter sales has been moderately positive (+1.7%). However year to date September sales at 4.9 million are still down 1.2% y.o.y. Honda is market leader.
Economic Outlook
Economic prospects for the next three years are strong. Real GDP growth is expected to reach 5.1% on average, driven by the momentum of consumer spending and an increase in public investment. The main risks for 2025 concern changes in exports due to fragmentation of global trade, the economic slowdown in China (Indonesia’s main trading partner) and a potential increase in US tariffs.
Indonesia’s economic growth is expected to improve in the fourth quarter, driven by year-end consumption and accelerated government spending, but reaching the government’s full-year target of 5.2 percent remains a steep challenge.
Interest rate cuts by Bank Indonesia and various fiscal stimulus measures are expected to provide additional support. Yet, Deni warned that the economy would need to grow roughly 5.4 percent in Q4 to meet the annual target, given Q1 growth at 4.8 percent, Q2 at 5.12 percent, and Q3 at 5.04 percent.
Motorcycles Industry Trend and Perspectives
Indonesian motorcycles industry, the third largest in the world, is very relevant within the industrial system and represent by far, the largest individual mobility market, near sixth times larger than the car industry.
Following the rapid growth reported in the last years ended with a 2024 growth at 6.5 million, the 2025 start was shy, with first half sales down 2.7%.
In the third quarter sales has been moderately positive (+1.7%). However year to date September sales at 4.9 million are still down 1.2% y.o.y.
Hit by unexpected break in the government incentives (stopped at December 2024 and now scheduled for a re-start in August), the EV segment lost sharply in the first seven months of the year. However, in August and September sales have been strong and the annual lost is limited at 2.7%.
Electric Vehicles Segment Growth
In April 2024, the Indonesian government has committed U$455 million to subsidize the purchase of electric motorcycles aiming 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 (roughly around US$435.36) discount on the purchase of electric motorcycles.
In 2024 the EV segment grew up 62.9%, but starting from a very low level, but hitting the 100.000 sales milestone for the first time.
During the year, the Chinese Giant and EV leader Yadea, announced a huge investment to produce electric scooter and motorcycles in Indonesia.
The inaugural vehicle delivery ceremony, held on March 14th, 2024, in Cikarang, Bekasi, Indonesia, marked a monumental milestone for Yadea expansion efforts in the Southeast Asian region.
Situated in Bekasi, West Java Province, the Yadea Indonesia production base encompasses a sprawling area of 28,000 square meters, boasting state-of-the-art facilities and cutting-edge technologies. With an impressive annual production capacity of 300,000 units.
