Indonesia Two Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycles), By Engine Capacity (0-150cc, 150-250cc & Above 250cc), By Region, Competition, Opportunities & Forecast, 2020-2030F

Indonesia Two Wheeler Market was valued at USD 9.42 billion in 2024 and is expected to reach USD 11.6 billion by 2030 with a CAGR of 3.3% during the forecast period. The Indonesian two-wheeler market is witnessing significant growth, fueled by several key drivers. Urbanization is leading to increased demand for affordable and efficient transportation options, with motorcycles and scooters offering a practical solution to traffic congestion in densely populated areas. Additionally, rising disposable incomes are enabling a larger segment of the population to afford personal vehicles, further boosting market demand. The Indonesian Motorcycle Industry Association (AISI) forecasts motorcycle sales to reach between 6.4 and 6.7 million units in 2025, up from 6.3 million units in 2024. This projection reflects a steady recovery and growth in the market.

Consumer preferences are also evolving, with a noticeable shift towards electric two-wheelers. This change is driven by environmental concerns and government incentives aimed at promoting sustainable transportation. The government's initiatives to support electric mobility are contributing to the growth of this segment. According to the Asian Development Bank, Indonesia's middle class is rapidly expanding, with an estimated 52 million people classified as middle-income earners in 2024 . This growing segment has led to increased discretionary spending on mobility solutions, with motorcycles being a preferred choice due to their affordability and low operating costs. The increasing disposable income allows middle-class families to invest in personal transport, with two-wheelers being the most cost-effective option for daily commuting.

Market Drivers

Urbanization and Traffic Congestion

As Indonesia experiences rapid urbanization, the country's cities are facing significant challenges with traffic congestion. This issue has made motorcycles and scooters an increasingly popular choice for urban commuters. Their ability to easily navigate through congested streets and reach destinations faster than cars has made them essential for daily transportation in bustling urban centers like Jakarta. Motorcycles and scooters are well-suited for urban environments due to their smaller size, which allows them to maneuver through traffic jams more effectively than larger vehicles. This has led to a growing preference for two-wheelers, especially for those seeking convenience and time savings in the face of daily gridlock. As the urban population continues to rise, the reliance on two-wheelers is expected to remain a key solution to urban mobility challenges. Data from the Ministry of Transportation indicates that Indonesia had over 110 million registered motorcycles by the end of 2023 . This high number reflects the widespread use of two-wheelers across the country, supporting the market's growth and indicating a strong consumer preference for motorcycles as a primary mode of transportation.

Key Market Challenges

Infrastructure Limitations

The lack of adequate infrastructure, including charging stations for electric vehicles (EVs) and sufficient parking spaces, poses a significant challenge to the widespread adoption of two-wheelers in Indonesia. In major cities, the shortage of charging points for electric two-wheelers can deter potential buyers who are concerned about the convenience of charging their vehicles. Furthermore, the absence of dedicated parking spaces for two-wheelers contributes to traffic congestion and safety issues, particularly in urban areas where motorcycles are commonly used for daily commuting. As the number of two-wheelers on the road increases, the existing infrastructure struggles to keep pace, resulting in frustration for both consumers and authorities. Additionally, while efforts to improve the infrastructure are underway, there is still a long way to go in terms of scalability and nationwide coverage, especially in rural regions. Without significant investments in both charging networks and safe, accessible parking options, the growth of the two-wheeler market may be stunted.

Key Market Trends

Shift Towards Electric Two-Wheelers

There is a growing trend towards the adoption of electric two-wheelers in Indonesia, spurred by both environmental awareness and government incentives. As the country seeks to reduce its carbon footprint, electric vehicles (EVs) are increasingly being seen as an eco-friendly and cost-effective alternative to traditional internal combustion engine (ICE) two-wheelers. These electric models offer lower operating costs, as they typically have fewer moving parts, reducing maintenance expenses. Additionally, with rising fuel prices, electric two-wheelers present an appealing solution for consumers looking to cut down on their daily commute costs. Government initiatives, such as subsidies and tax breaks, further encourage the shift towards electric two-wheelers, making them more accessible to the average consumer. As charging infrastructure expands and the technology matures, the adoption of electric two-wheelers is expected to accelerate in the coming years. The Indonesian government has introduced various incentives to promote the adoption of electric two-wheelers. In 2024, the government removed luxury taxes on electric vehicles for the fiscal year and suspended import taxes until the end of 2025. Additionally, the value-added tax for electric vehicle buyers was reduced from 11% to 1% . These measures aim to increase domestic demand for electric vehicles and attract investment in the automotive sector.

Key Market Players

• PT Astra Honda Motor
• PT Yamaha Indonesia Motor Manufacturing
• PT Suzuki Indomobil Motor
• PT Kawasaki Motor Indonesia
• PT Viar Motor Indonesia
• PT Gesits Technologies Indo
• PT Triangle Motorindo (Brand owner of Viar)
• PT Indomobil Sukses Internasional Tbk
• PT Terra Motors Indonesia
• PT Yadea Teknologi Indonesia

Report Scope:

In this report, the Indonesia Two Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Indonesia Two Wheeler Market, By Vehicle Type:

• Scooter/Moped
• Motorcycles

Indonesia Two Wheeler Market, By Engine Capacity:

• 0-150cc
• 150-250cc
• Above 250cc

Indonesia Two Wheeler Market, By Region:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Bali and Nusa Tenggara
• Maluku and Papua

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Indonesia Two Wheeler Market.

Available Customizations:

Indonesia Two Wheeler Market report with the given market data, TechSci Research offers customizations according to the company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).