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Electric motorbikes to lead EV adoption in Indonesia
A study by consulting firm McKinsey & Company showed that electric motorcycles would pave the way for electric vehicle (EV) adoption in Indonesia as the bikes would become cost-competitive with regular motorcycles by 2022.
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Mellow yellow: Two Jakartans try out the electric bicycles provided by China-based rental app Migo at one of its stations in Kota Bambu Utara, Palmerah, West Jakarta on Wednesday. The electric bicycle entered Jakarta in December last year. (The Jakarta Post/Jerry Adiguna )
T
he demand for electric motorcycles is projected to pave the way for electric vehicle (EV) adoption in Indonesia as the bikes would become cost-competitive with regular motorcycles by 2022, a study has shown.
The study by consulting firm McKinsey & Company showed that the total cost of owning an electric two-wheeled vehicle is expected to be equal to conventional internal combustion engine (ICE) motorcycles by next year and to be cheaper than ICE motorcycles by 2025.
As of 2020, the lifetime cost of ownership of a conventional motorcycle stood at around US$2,400, while an electric motorcycle around $2,616. The study suggests that electric motorcycles will reach cost parity with ICE bikes by 2022 as EV batteries become cheaper.
“This is why we expect electric two-wheelers to become the first [EVs] to reach 50 percent use in Indonesia,” McKinsey & Company Indonesia partner Thomas Hansmann said in an online press briefing on April 21.
He went on to say that the government needed to introduce fiscal incentives to support production of EVs, EV batteries and charging stations.
Read also: Indonesia needs 31,000 charging stations to reach electric vehicle goals
McKinsey’s findings support a growing body of opinion that electric motorcycles will lead electric vehicle adoption in Indonesia because motorcycles are generally cheaper and more widely used than cars in the country.
