Motorcycle Sales Indonesia Remain Bleak in 2016
Indonesia's motorcycle sales fell 10 percent (y/y) to 4.35 million in the first three quarters of 2016 from 4.82 million motorcycle units in the same period one year earlier. Meanwhile, in the month September 2016 a total of 555,820 motorcycles were sold in Indonesia, down 8 percent (y/y) from sales in the same month one year earlier. Gunadi Sindhuwinata, Chairman of the Indonesian Motorcycle Manufacturers Association (AISI), informed that Indonesia's motorcycle sales have still not returned to normal levels in 2016.
Based on these recent motorcycle sales data, Indonesia's purchasing power has still not recovered. Similar to car sales, motorcycle sales are a good indicator to measure the state of purchasing power and consumer confidence within the country. The decline in motorcycle sales shows that consumers tend to postpone the purchase. Sindhuwinata said a normal motorcycle sales figure would be 600,000 units (per month) in the August-October period. However, with only 555,820 motorcycles being sold in September, demand remains bleak.
Recently rising commodity prices, especially coal and palm oil, are hoped to boost people's purchasing power on the islands of Sumatra and Kalimantan and thus give rise to accelerating motorcycle sales in the next couple of months.
AISI still targets to see 6 million motorcycle sales in full-year 2016 (down from 6.48 million motorcycle sales in 2015). This target implies that in the last three months of the year there need to be at least 550,000 motorcycle sales per month, a very ambitious target. However, the Indonesia Motorcycle Show 2016 (held between 2 - 6 November 2016 in Jakarta) could boost domestic motorcycle sales significantly in the last two months of the year and therefore AISI remains optimistic that its target can be achieved, or even exceeded.
Meanwhile, Honda motorcycles remain the dominating force within Indonesia's motorcycle sector, commanding a 72 percent market share. In the first nine months of 2016 a total of 3.1 million two-wheeled Honda units were sold in Indonesia. Yamaha is the second-most popular motorcycle brand in Indonesia with 1 million sales in the January-September 2016 period.
In July 2016 it was reported that Yamaha Indonesia Motor Manufacturing (YIMM) and Astra Honda Motor (AHM) were suspected of being involved in motorcycle cartel practices. Indonesia's Business Competition Supervisory Commission (KPPU) stated that it found evidence (in the form of electronic mails) that both firms are involved in fixing the prices of underbone and scooter style motorcycles. These allegations have caused a weakening in both companies' export performance.
Bahas
Silakan login atau berlangganan untuk mengomentari kolom ini