Higher commodity prices will push up income of Indonesians, which will eventually help improve sales of motorcycle manufacturers
Sales of motorcycles in Indonesia in the first ten months of 2017 stood at 4.91 million units, a slight decline of 0.1% compared to the same period last year, The Jakarta Post reported citing data from the Indonesian Motorcycle Industry Association (AISI).
Sigit Kumula, the commercial head of AISI, informed the Jakarta Post that motorcycle sales in Indonesia have been declining since 2014 due to the low commodity prices which curbed the purchasing power of consumers. However, the total sales of motorcycles is expected to rebound and reach 6.1 million units in 2018 as the country is beginning to see a rise in prices of commodities such as crude palm oil and rubber, which will eventually lead to the higher income of people in Indonesia next year, Sigit said.
According to Sigit, Honda is currently the biggest player in Indonesia’s motorcycle market with 74.7 % of market share. This is followed by Yamaha and Kawasaki, which holds 22.6% and 1.4% of the market, respectively.
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