Indonesian Production and Exports of Cars and Motorcycles Rise Steeply
Exports of Indonesian-made cars and motorcycles are expected to grow sharply in 2014 and 2015, although coming from a low base and rather insignificant compared to domestic sales. These rising export figures are made possible by enhanced domestic production capacity. Indonesian exports of motorcycles are expected to rise 122 percent to 60,000 units in 2014, while exports of cars are expected to rise 93 percent to 386,000 units in 2015. Although there is still a long road to go, Indonesia is increasing its status in these industries.
Gunadi Sindhuwinata, General Chairman of the Indonesian Motorcycle Industry Association (AISI), said that motorcycle exports will rise sharply in 2014 from last year’s figure of 20,000 units on increased production of new Yamaha and Kawasaki models. In mid-April 2014, Kawasaki Heavy Industries Ltd opened a new motorcycle factory in Cikarang (West Java), an investment worth USD $102.7 million, with a production capacity of 150,000 motorcycles per year. This output is to supply both the domestic market and emerging markets (particularly in ASEAN countries).
Based on data from Indonesia’s Trade Ministry, the total value of motorcycle exports and components from Southeast Asia’s largest economy reached USD $564.4 million in 2013. Most of this total amount is accounted for by motorcycle components (USD $438.0 million). The ministry further stated that it will do as much as possible to foster an environment in which exports of motorcycles and cars can continue to grow (in an attempt to improve the country’s troubled trade balance). For example by increasing competitiveness of local manufacturers through improved regulations and infrastructure. Indonesia is currently the world’s third-largest producer of motorcycles after China and India. In 2013, Indonesia produced 7.7 million motorcycles. Meanwhile, motorcycles sales in 2014 are only estimated to rise slightly to 7.8 million units as the elections and the recent Constitutional Court case are believed to have had a negative impact on motorcycles sales this year.
Indonesian Motorcycle Sales:
2011 | 2012 | 2013 | 2014¹ | |
Motorcycle Sales in Indonesia |
8,012,540 | 7,064,457 | 7,743,879 | 4,755,644 |
- Honda |
4,273,888 | 4,088,888 | 4,696,999 | 2,952,933 |
- Yamaha |
3,136,073 | 2,423,854 | 2,492,596 | 1,509,044 |
- Suzuki | 493,095 | 418,940 | 393,803 | 187,290 |
¹ January-July 2014 motorcycle sales only
Source: Indonesian Motorcycle Industry Association (AISI)
Indonesia is projected to export 386,000 car units in 2015, a 93 percent increase from this year’s estimated figure of 200,000 units due to increased domestic production. Indonesian-made cars that are exported include the Toyota Avanza and Toyota Fortuner, the Nissan Grand Livina, the Honda Freed, Chevorelet Spin and Suzuki APV. The most important export markets are Thailand, Saudi Arabia, the Philippines, Japan, and Malaysia. Next year, a total of 1.61 million cars are expected to be produced in Indonesia (from 1.3 million in 2014).
Indonesian Car Sales (CBU):
Month | Sold Cars 2012 | Sold Cars 2013 | Sold Cars 2014 |
January | 76,427 | 96,718 | 103,595 |
February | 86,486 | 103,279 | 111,880 |
March | 87,917 | 95,996 | 113,096 |
April | 87,144 | 102,257 | 106,056 |
May | 95,541 | 99,697 | 97,136 |
June | 101,746 | 104,268 | 110,548 |
July | 102,511 | 112,178 | ±91,000 |
August | 76,445 | 77,964 | |
September | 102,100 | 115,973 | |
October | 106,754 | 112,039 | |
November | 103,703 | 111,841 | |
December | 89,456 | 97,694 | |
Total | 1,116,230 |
1,229,904 |
±733,311 |
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014¹ | |
Indonesian Car Sales (number of car units) |
607,805 | 486,061 | 764,710 | 894,164 | 1,116,230 |
1,229,904 | 1,280,000 |
Indonesian Exports (number of car units) |
100,982 | 56,669 | 85,769 | 107,932 | 173,368 | 170,907 | 200,000 |
¹ future forecast
Source: Gaikindo
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