Why Do Motorcycle Exports from Indonesia Rise Strongly?
Exports of Indonesian motorcycles surged 46.1 percent year-on-year (y/y) to 226,444 units in the January-May 2018 period (from 155,034 exported motorcycles in the first five months of 2017), according to the latest data from the Indonesian Motorcycle Industry Association (AISI). Sigit Kumala, Commercial Head at AISI, sees three reasons behind the robustly growing amount of motorcycle exports from Southeast Asia's largest economy.
• Firstly, more export markets have been added by domestic motorcycle exporters. Indonesia now exports its motorcycles to markets in Southeast Asia, Europe, and Latin America.
• Secondly, the local economies of export markets are improving, hence there occurs more demand for motorcycles.
• Thirdly, the Indonesian rupiah has weakened against the US dollar over the past couple of months. This means that prices of Indonesian motorcycles become more competitive on the international market (meanwhile massive motorcycle production in Indonesia also puts downward pressure on prices).
Yamaha remains the most popular exported motorcycle brand as 55.42 percent of all exported motorcycles from Indonesia are Yamaha units. On second position comes Honda (28.67 percent), followed by Suzuki (7.76 percent), TVS (6.21 percent) and Kawasaki (1.95 percent).
Meanwhile, domestic motorcycle sales in Indonesia are rising also but at a less impressive rate. In the first five months of 2018 a total of 2.6 million motorcycle units were sold in Indonesia, up 13 percent on an annual basis. The month May 2018 was a particularly good month in terms of domestic motorcycle sales as a total of 589,304 units were sold on the back of strong demand ahead of the Lebaran (Idul Fitri) period as well as the launch of new motorcycle models. Meanwhile, purchasing power improved as the government distributed the 13th month wage bonus to civil servants, while many companies distributed the holiday allowance to workers.
However, considering the long holiday in June (11-19 June) motorcycle sales are expected to fall this month.
Exports of Indonesian Motorcycles:
| Brand | Jan-May 2017 |
Jan-May 2018 |
| Yamaha |
87,613 | 125,500 |
| Honda | 44,353 | 64,912 |
| Suzuki | 10,483 | 17,573 |
| TVS | 11,035 | 14,052 |
| Kawasaki | 1,550 | 4,407 |
| Total | 155,034 | 266,444 |
Source: AISI