Motorcycle manufacturers see bright prospects ahead<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
The local motorcycle industry is set to continue to grow to
\ndouble-digits in the coming years on the back of an improving
\neconomy, more affordable prices, and less complicated bank credit
\nrequirements, industry players have said.<\/p>\n
Deputy chairman of the Indonesian Motorcycle Industry
\nAssociation (AISI), Gunadi Sindhuwinata, said that motorcycle
\nsales could reach up to 3.6 million by the end of the year, 28
\npercent higher than in 2003.<\/p>\n
\"I'm quite certain we could materialize the target. Up until
\nJuly, at least 1.8 million motorcycles had been sold. Double
\nthat, and we could even surpass the target,\" Gunadi told The
\nJakarta Post during the opening of the second Jakarta Motor Show
\nhere on Friday.<\/p>\n
AISI groups six local motorcycle makers of global brands such
\nas Honda, Suzuki, Yamaha, Kawasaki, Kymco and Vespa. They account
\nfor around 95 percent of total domestic sales.<\/p>\n
Gunadi, who is also the president director of publicly listed
\nPT Indomobil Sukses Internasional, said that currently Honda
\nremained the most popular brand with a 51 percent market share,
\nfollowed with Suzuki and Yamaha with around a 20 percent market
\nshare each.<\/p>\n
\"Our economy is getting better, there are more choices of
\nfinancing companies offering credit with far less knotty
\nrequirements, and more flexible down payments.<\/p>\n
\"Besides that, informal sectors that rely on motorcycles is
\nalso growing...like the ojek (motorcycle taxi). So, the future is
\nbright,\" he said.<\/p>\n
He projected that sales would jump to around four million
\nunits next year.<\/p>\n
\"We still have vast room to grow, both in distribution and
\npopulation growth. Our motorcycle usage to population ratio is
\nstill 1 to 20, while in Thailand the ratio is already 1 to 1.2,\"
\nsaid Gunadi.<\/p>\n
Domestic motorcycle sales in 2003 reached 2.8 million units.
\nBased on data from the Federation of Asian Motorcycle Industries
\n(FAMI), Indonesia remains the second largest market for
\nmotorcycles in Asia behind India, which sold almost six million
\nunits last year.<\/p>\n
FAMI comprises Indonesia, India, Japan, Malaysia, the
\nPhilippines, Singapore, Thailand and Taiwan.<\/p>\n
Furthermore, Gunadi said that \"step-through\" motorbikes would
\nstill dominate sales in the future due to the increasing demand
\nfor the type.<\/p>\n
\"Currently, 85 percent of the total sales are step-through
\nbikes, while the remainder are the far more expensive ones, such
\nas sportbikes,\" he said.<\/p>\n
He explained that the step-through motorbike had a larger
\nsegment compared to the sport or other bikes, because it was far
\ncheaper and can be used by either male or female.<\/p>\n
Gunadi also said that since 1986, about 90 percent of the
\ntotal components were from the local market. The remaining 5
\npercent are still imported, such as carburetors and specific
\nbolts, he added.<\/p>\n
Total sales of motorcycles of six leading brands<\/p>\n
1999: 587,402<\/p>\n
2000: 979,422<\/p>\n
2001: 1,650,770<\/p>\n
2002: 2,287,706<\/p>\n
2003: 2,809,896<\/p>\n
2004: 3,600,000*<\/p>\n
2005: 4,000,000*<\/p>\n
*: AISI projection<\/p>\n
Source: The Indonesian Motorcycle Industry Association<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/motorcycle-manufacturers-see-bright-prospects-ahead-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }