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View all search resultsMotorcycle sales skid in H1 due to weak demand, tougher credit
The Indonesia Motorcycle Show, scheduled for September, is expected to serve as a catalyst and lift overall industry sentiment.
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On the move: Motorists ride in front of the Merdeka Building on April 16 in Bandung, West Java. (Antara/Novrian Arbi)
I
ndonesia’s motorcycle market recorded a decline in the first half of this year, as sluggish consumer demand and tighter credit access weighed on domestic sales, the industry association has said.
Domestic sales reached 3.1 million units from January to June, down 2.09 percent year-on-year (yoy), data from the Indonesian Motorcycle Industry Association (AISI) show. Monthly sales trended downward consistently from February through the end of June.
“Like many other sectors, it’s about consumer purchasing power. Motorcycles aren’t a primary need, so people hold back on buying when their income is under pressure,” AISI commercial affairs head Sigit Kumala said on Thursday, as quoted by Kontan.
He also pointed to difficulties in securing financing as another barrier. Over 60 percent of motorcycle buyers rely on credit, but banks have become more selective, leading to higher rejection rates.
“Many consumers failed to meet lenders’ requirements, so their applications were denied,” he said.
The third factor, Sigit noted, was seasonal spending patterns. During the holiday period, many consumers redirected spending toward travel. At the same time, disruptions to the harvest season left rural consumers with less disposable income.
Read also: Major auto show GIIAS ends with larger crowds but slower sales
