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
Market Overview
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
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:
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
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).
1. INTRODUCTION
1.1. Research Tenure Considered
1.2. Market Definition
1.3. Scope of the Market
1.4. Markets Covered
1.5. Years Considered for Study
1.6. Key Market Segmentations
2. RESEARCH METHODOLOGY
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. EXECUTIVE SUMMARY
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Regions
4. INDONESIA TWO WHEELER OUTLOOK
4.1. Market Size & Forecast
4.1.1. By Value
4.2. Market Share & Forecast
4.2.1. By Vehicle Type Market Share Analysis (Scooter/Moped, Motorcycles)
4.2.2. By Engine Capacity Market Share Analysis (0-150cc, 150-250cc & Above 250cc)
4.2.3. By Regional Market Share Analysis
4.2.4. By Top 5 Companies Market Share Analysis, Others (2024)
4.3. Indonesia Two Wheeler Mapping & Opportunity Assessment
5. INDONESIA SCOOTER/MOPED MARKET OUTLOOK
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Engine Capacity Market Share Analysis
6. INDONESIA MOTORCYCLES MARKET OUTLOOK
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Engine Capacity Market Share Analysis
7. MARKET DYNAMICS
7.1. Drivers
7.2. Challenges
8. MARKET TRENDS & DEVELOPMENTS
9. PORTERS FIVE FORCES ANALYSIS
10. POLICY AND REGULATORY LANDSCAPE
11. ECONOMIC PROFILE
12. COMPETITIVE LANDSCAPE
12.1. Company Profiles
12.1.1. PT Astra Honda Motor
12.1.1.1. Company Details
12.1.1.2. Types
12.1.1.3. Financials (As Per Availability)
12.1.1.4. Key Market Focus & Geographical Presence
12.1.1.5. Recent Developments
12.1.1.6. Key Management Personnel
12.1.2. PT Yamaha Indonesia Motor Manufacturing
12.1.3. PT Suzuki Indomobil Motor
12.1.4. PT Kawasaki Motor Indonesia
12.1.5. PT Viar Motor Indonesia
12.1.6. PT Gesits Technologies Indo
12.1.7. PT Triangle Motorindo (Brand owner of Viar)
12.1.8. PT Indomobil Sukses Internasional Tbk
12.1.9. PT Terra Motors Indonesia
12.1.10. PT Yadea Teknologi Indonesia
13. STRATEGIC RECOMMENDATIONS
14. ABOUT US & DISCLAIMER
1.1. Research Tenure Considered
1.2. Market Definition
1.3. Scope of the Market
1.4. Markets Covered
1.5. Years Considered for Study
1.6. Key Market Segmentations
2. RESEARCH METHODOLOGY
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. EXECUTIVE SUMMARY
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Regions
4. INDONESIA TWO WHEELER OUTLOOK
4.1. Market Size & Forecast
4.1.1. By Value
4.2. Market Share & Forecast
4.2.1. By Vehicle Type Market Share Analysis (Scooter/Moped, Motorcycles)
4.2.2. By Engine Capacity Market Share Analysis (0-150cc, 150-250cc & Above 250cc)
4.2.3. By Regional Market Share Analysis
4.2.4. By Top 5 Companies Market Share Analysis, Others (2024)
4.3. Indonesia Two Wheeler Mapping & Opportunity Assessment
5. INDONESIA SCOOTER/MOPED MARKET OUTLOOK
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Engine Capacity Market Share Analysis
6. INDONESIA MOTORCYCLES MARKET OUTLOOK
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Engine Capacity Market Share Analysis
7. MARKET DYNAMICS
7.1. Drivers
7.2. Challenges
8. MARKET TRENDS & DEVELOPMENTS
9. PORTERS FIVE FORCES ANALYSIS
10. POLICY AND REGULATORY LANDSCAPE
11. ECONOMIC PROFILE
12. COMPETITIVE LANDSCAPE
12.1. Company Profiles
12.1.1. PT Astra Honda Motor
12.1.1.1. Company Details
12.1.1.2. Types
12.1.1.3. Financials (As Per Availability)
12.1.1.4. Key Market Focus & Geographical Presence
12.1.1.5. Recent Developments
12.1.1.6. Key Management Personnel
12.1.2. PT Yamaha Indonesia Motor Manufacturing
12.1.3. PT Suzuki Indomobil Motor
12.1.4. PT Kawasaki Motor Indonesia
12.1.5. PT Viar Motor Indonesia
12.1.6. PT Gesits Technologies Indo
12.1.7. PT Triangle Motorindo (Brand owner of Viar)
12.1.8. PT Indomobil Sukses Internasional Tbk
12.1.9. PT Terra Motors Indonesia
12.1.10. PT Yadea Teknologi Indonesia
13. STRATEGIC RECOMMENDATIONS
14. ABOUT US & DISCLAIMER
