Thu, 16 Dec 2010

From: Reuters

JAKARTA Dec 15 (Reuters) - Indonesia's domestic motorcycle sales, an indicator of consumer demand in Southeast Asia's biggest economy, rose 19.7 percent from a year ago to 653,842 units in November, industry data showed on Wednesday.

Sales volumes were led by Honda , Yamaha , and Suzuki , according to data from Indonesia's Motorcycle Industry Association (AISI).

Sales so far this year have already exceeded a June forecast by Indonesia's biggest vehicle seller PT Astra International , though the pace of growth has slowed in the second half of the year after a 41 percent gain in first half of 2010.

Motorcycle sales may reach 8 million next year, local newspaper Bisnis Indonesia quoted the chairman of the association as saying.

The Indonesian government will stop the use of subsidised fuel for private cars from next year but not for motorcycles, which will help support sales growth for two-wheelers. [ID:nL3E6NE0C5]

Investors have poured into Indonesia's stock market in the past year to drive it to record highs, and are favouring consumer stocks on the strength of domestic demand, brokers say. Shares in Indonesia's top tyre maker Gajah Tunggal have risen more than five times this year.