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Motorcycle sales strong as of August
Defying high fuel prices and lending interest rates, sales of motorcycles continued to remain strong in the first eight months of the year with Honda still managing to hold off stiff challenge from Yamaha to retain top spot
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Defying high fuel prices and lending interest rates, sales of motorcycles continued to remain strong in the first eight months of the year with Honda still managing to hold off stiff challenge from Yamaha to retain top spot.
Sales during the January-August period reached slightly over 4.2 million, or a 43 percent increase from the same period a year earlier, data from the PT Astra International, Honda distributor, and Indonesian Motorcycle Industry Association (AISI) reveal.
The robust growth came despite the current high interest rate environment triggered by inflationary pressure. Indonesians usually finance their vehicle purchases with bank lending.
The government increased fuel prices nearing the end of the first semester by 28.7 percent on average, pushing up inflation and interest rates.
The eight-month figure keeps the full-year target of 5.2 million, set out early this year by AISI, on track.
AISI has said some manufacturers planned to raise the price of their products to compensate for higher transportation costs due to expensive material costs. It is unclear whether the price increase took place in August.
The data also showed that Honda remained the top seller as of the end of August after selling 1.9 million units, or equal to around 47 percent of the market share.
Yamaha trailed closely with sales recorded at 1.6 million, followed by Suzuki with 0.56 million units.
Last year, more than 4.7 million motorcycles were sold, with Honda, Yamaha and Suzuki controlling more than 95 percent.
Indonesia has seen a rapid growth in motorcycle sales over the years. According to a survey conducted in the first semester, motorcycle ownership in the country increased by 125 percent from 2000 to 2007.
The survey, carried out by Nielsen Media Research Indonesia, showed that motorcycle ownership jumped from 10.5 million in 2000 to 23.7 million by the end of last year.
In addition to bank lending affordability, worsening traffic congestion along main streets in the country also played part in people’s appetite to own faster transportation such as motorbikes.
