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Not Just Cars: Chinese Motorcycles Also Target Indonesia — Here's Why

| Source: CNBC Translated from Indonesian | Business
Not Just Cars: Chinese Motorcycles Also Target Indonesia — Here's Why
Image: CNBC

The influx of Chinese automotive brands into Indonesia is not limited to the car segment. Two-wheeler manufacturers from China are now also more aggressively cultivating the domestic market, one example being the launch of the Omoway Omo X smart electric motorcycle, which selected Indonesia as the first country for its global debut. This move demonstrates the significant attention Chinese producers are paying to the two-wheeler market, which has long been one of the largest in the world. The Chinese company even chose Indonesia as the initial development centre for its product and has poured in an investment of approximately US$10 million, or around Rp177 billion to Rp179 billion, for the vehicle’s research and development. “Indonesia is the first market in the world, and we have officially started shipping the Omo X,” said Omoway Indonesia General Manager Yulong Chen in a statement on Friday. The company spent two years studying the needs of motorcycle users, particularly on Java Island. The result is an electric scooter equipped with several technologies rarely found on two-wheeled vehicles, including a self-balancing system that allows the motorcycle to maintain balance and stand upright without a side stand. “We chose Indonesia because it is the most vibrant two-wheeler market in the world and the best place to prove a real change in riding methods,” he said. Omoway is not only selling imported products but has also begun local assembly in Indonesia. Chen revealed that the assembly facility is located in Balaraja, Tangerang, and is currently ready to fulfil consumer deliveries. “Assembly is in Balaraja, Tangerang. The factory is finished and the products are ready to be shipped to consumers,” said Chen. With the commencement of domestic assembly, the Domestic Component Level (TKDN) of the electric motorcycle has also exceeded the threshold required by the government. “Currently, the local content is already more than 40%. But what needs to be noted is that around 80-90% of the Omo X’s spare parts use materials with quality equivalent to automotive-grade materials,” Chen stated.

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