Motorbike industry players warn stakeholders regarding weakening consumer purchasing power in line with the sluggish trend in motorbike sales.
Data from the Indonesian Motorcycle Industry Association (AISI) shows that domestic motorbike sales reached 505,670 units in May 2024, down 4.54% compared to 529,771 units sold in May 2023. Accumulated sales during January-May 2024 were also recorded to have decreased by 1.78% year on year (y/y) to 2.65 million units.
Head of AISI’s Commercial Sector, Sigit Kumala, said that the decline in motorbike sales could not be separated from sluggish consumer purchasing power. Apart from that, tightening credit from financial institutions is also a factor.
According to him, the government must maintain inflation and interest rates because this has a big impact on the motorbike industry. Weakening purchasing power not only has an impact on the motorbike industry, but also the retail industry. Meanwhile, AISI has set a target for domestic motorbike sales to reach the range of 6.2 million to 6.5 million this year.
