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EV subsidy: Motorbike makers gear up for surge in demand
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A consumer inspects an electric motorcycle showcased in the Tangkas Ciater electric motorcycle showroom in South Tangerang, Banten, on March 6, 2023. The government is set to subsidize electric vehicles starting from March 20 until the end of the year. ( Antara/Muhammad Iqbal)
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ndonesian electric two-wheeler producers are gearing up for rising sales thanks to government subsidies aimed at boosting electric vehicle (EV) adoption in the country.
Volta, Selis and Gesits, the three electric two-wheeler producers eligible to sell their products under the subsidy program, project double-digit increases in sales this year, which is likely to require them to boost their production capacity.
Wilson Teoh, director of PT Juara Bike, which produces EV bikes under the Selis brand, expects sales this year to be about 40 percent higher than they would have been without the financial assistance, while consolidated revenue may exceed Rp 700 billion (US$45.5 million).
Taking into account the effect of the subsidy set to be made available later this month, the company now aims to sell around 60,000 electric two-wheelers this year, namely 20,000 motorcycles and 40,000 e-bikes.
“With this subsidy, our sales and revenue can still rise significantly,” Wilson told reporters in Jakarta on Friday.
Read also: Govt earmarks Rp 1.75t for electric two-wheelers 'assistance'
The assistance will come in the form of subsidies, amounting to Rp 7 million for each purchase or conversion, but only for two-wheelers produced in compliance with the local content requirement (TKDN), which means at least 40 percent of the value of the components must come from Indonesia.
