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Electric motorbike producers push for extension of subsidies into 2025
Electric motorcycle sales could plummet next year unless the government renews a subsidy program, producers warn.
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Electric motorcycles from Indonesian brand Selis are pictured on Oct. 27, 2019, in Jakarta. (Shutterstock/Wulandari)
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lectric motorcycle producers have expressed concern over plummeting sales caused by the end of government subsidies, with repercussions for Indonesia’s energy transition.
Indonesian Electric Motorcycle Industry Association (Aismoli) secretary-general Hanggoro Ananta said that, unless the subsidy program for electric motorcycles was renewed, 2025 would see a contraction of sales.
He added that there was no guarantee customers would want to buy electric motorbikes at unsubsidized prices.
“Anything can happen, but in that situation [without subsidies], consumers would turn to ICE [internal combustion engine] motorcycles,” Hanggoro said on Monday, as quoted by Kontan.
He argued that the subsidy program was crucial, given that the industry was still new in Indonesia and that some manufacturers had only recently expanded their production facilities in the country.
Hanggoro explained that thousands of consumers had been asking Aismoli member businesses whether the subsidy program would be extended into 2025. After the fixed subsidy quota set for this year ran out, many potential buyers reportedly decided to wait before making a decision, leading to stagnant sales.
“There must be an evaluation of how the electric motorcycle subsidy was distributed this year,” he said.
