Indonesia’s motorcycle market grew just 0.6% in 2025 to 6.55 million units, as uneven economic growth and unclear EV incentives continue to pressure industry momentum.

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Indonesia’s motorcycle market continued to lose pace in 2025, expanding by just 0.6% to approximately 6.55 million units. This followed a modest 2.1% increase in 2024 and leaves total volumes well below the 8 million-unit annual peak achieved in the previous decade, underscoring a slower and more cautious recovery.
The softer industry performance comes despite a generally positive economic backdrop. Indonesia’s economy is expected to record average real GDP growth of around 5.1% over the next few years, supported by steady consumer spending and increased public investment. However, growth in 2025 has been uneven, placing greater emphasis on year-end consumption and government spending to meet official targets. External risks, including weaker demand from China, global trade fragmentation and the possibility of higher US tariffs, continue to weigh on confidence.
Policy support has helped cushion the slowdown. Interest rate cuts by Bank Indonesia, together with fiscal stimulus measures, are expected to provide some relief. Even so, the macroeconomic environment remains vulnerable, limiting upside potential for discretionary purchases such as motorcycles.
As the world’s third-largest motorcycle market, Indonesia remains central to the global two-wheeler industry. Motorcycles dominate personal mobility, with sales volumes far exceeding those of passenger cars. Following the post-pandemic rebound, supported by a largely localised production base, the market has struggled to regain stronger growth momentum.
Uncertainty has been particularly evident in the electric motorcycle segment. Government incentives introduced in mid-2023 expired at the end of 2024 and were repeatedly delayed before authorities confirmed that no new subsidies would be offered. This lack of policy continuity has slowed investment and adoption in the electric two-wheeler space.
Despite these headwinds, Yadea has moved ahead with a significant manufacturing investment in Indonesia. The company’s Bekasi facility in West Java, covering 28,000 square metres and offering annual capacity of up to 300,000 units, began initial deliveries in March 2024. The move signals continued long-term confidence in Indonesia’s motorcycle market, even as short-term growth and policy clarity remain under pressure.



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