Indonesian Political, Business & Finance News

Electric Motorcycle Subsidies to End, Dealers Seek Ways to Maintain Sales

| Source: CNBC Translated from Indonesian | Economy
Electric Motorcycle Subsidies to End, Dealers Seek Ways to Maintain Sales
Image: CNBC

The government’s decision not to extend incentives for electric motorcycles in 2026 has raised concerns among industry players. Without government support, manufacturers and dealership networks are expected to find alternative ways to maintain consumer interest in two-wheeled electric vehicles.

Octavianus Dwi Putro, Marketing Director of PT Astra Honda Motor (AHM), acknowledged that government incentives have played a role in increasing the appeal of electric motorcycles. However, he believes that the industry must continue to promote the adoption of electric vehicles even without such support.

“Incentives certainly boost sales. But even without incentives, we must continue to introduce EVs to consumers,” said Octavianus during an AHM iftar event, as quoted on Thursday (26/2/2026).

The company will continue to implement various efforts to expand the use of electric motorcycles, from marketing to providing direct experiences for the public.

“We will continue to market, provide experiences, and prepare the infrastructure. Hopefully, occasional promotional programs will be attractive,” he said.

In the absence of government subsidies, promotions are likely to be carried out more independently by dealership networks.

“That’s right, independent programs,” he said when asked whether incentives would be replaced by dealer promotions.

Although the market for two-wheeled electric vehicles is still relatively small, the industry sees long-term growth potential. Throughout 2025, for example, national electric motorcycle sales were still in the tens of thousands of units.

“If I’m not mistaken, the latest data is around 60,000 units,” said Octavianus.

Regarding Honda’s contribution to that figure, Octavianus declined to disclose its market share.

“I can’t check it one by one. I only know the total,” he said.

In the future, the company also remains open to introducing new electric motorcycle models. However, Octavianus emphasized that this decision will be adjusted to the needs of the domestic market.

“Just wait and see. We will adjust the models to market needs,” he said.

Previously, the government confirmed that it would not provide incentives for the purchase of electric motorcycles this year. This confirmation also answered speculation from the public and industry players who had been waiting for the continuation of the policy.

“There will be no incentives for electric motorcycles this year. [Is it final?] This year, incentives will not be provided,” said Minister of Industry Agus Gumiwang Kartasasmita during a discussion with several media outlets in Bandung, Thursday (29/1/2026).

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