Indonesian Production and Exports of Cars and Motorcycles Rise Steeply

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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