Indonesia’s February motorcycle sales fell 5.6 percent as compared with last year, following a 17.2 percent slump in January, an industry association said. (Antara Photo/Hafidz Mubarak A.)

Decline in Motorcycle Sales Continues With 15 Percent Drop in September

BY :RAHAJENG KH

OCTOBER 08, 2015

Jakarta. Indonesian motorcycle sales took a plunge in September amid weak purchasing power, adding pressure on manufacturers to make use of its overcapacity and avoid workers furlough.

Sales contracted 15 percent to 603,102 units last month compared to the same month last year, following an 2.1 increase in August that turned to be a fluke in the declining sales trend so far this year, data from the Indonesia Motorcycle Association (AISI) showed on Wednesday.

Manufacturers shipped a cumulative 4.8 million units to dealers in the first nine months of this year, down 20 percent from 6.1 million motorbikes in the same period last year.

"We really hope that sales will not decline for the rest of the year, though we know that the economy is still shaky," said AISI chairman Gunadi Shinduwinata.

Low commodity prices have hurt economic growth, which slowed 4.67 percent in the second quarter, its weakest pace in six years.

Sales In Kalimantan and Sumatra, the country's main coal and palm oil producers, were hit the hardest, Gunadi said.

The country's motorcycles manufacturers, including Honda, Yamaha, Kawasaki, Suzuki and TVS, are now seeking to expand their export market in order to make use of their annual production capacity of 9.5 million units, Gunadi said.

Exports have quadrupled to 200,000 units so far this year, with companies selling two-wheelers to developed market like the United States, Europe and Japan, he added.

Sales of motorbikes is one of the leading indicators for economic growth in Indonesia, where domestic consumption accounts for more than half of the gross domestic product.

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