An Indonesian model poses with a Zero electric motorcycle ahead of the opening of the Indonesia International Motor Show in Jakarta on Wednesday. (AFP Photo/Bay Ismoyo)

Garansindo Looks to Kick-Start Motorcycle Sales With High-End Imports

AUGUST 20, 2015

Jakarta. Imported vehicle distributor Garansindo Inter Global has added three motorcycle marques to its stable as it eyes potential demand for premium two-wheelers amid a general decline in vehicle sales this year.

The company introduced US electric motorcycle brand Zero Motorcycles and France’s Peugeot Sccoters at its stand at the opening of the Indonesia International Motor Show in Jakarta on Wednesday. It also plans to sell electric bicycles from Italjet Moto later this year.

“I can’t gauge how big the potential for premium motorcycles in Indonesia is yet, but [the IIMS] exists because the market demands it, not because we’re creating the market,” A. Rieva Muchsin, Garansindo’s chief marketing officer, told GlobeAsia on the sidelines of the motor show.

Garansindo plans to sell four models of Zero Motorcycles – the Zero FX, S, DS and SR – at a price range of Rp 170 million to Rp 200 million ($12,400 to $14,600) through a subsidiary, Garansindo Technologies. It will also sell three Peugeot models – the Django, City Star and Metropolis – from Rp 35 million to Rp 219 million.

By comparison, the best-selling locally-built motorbikes from the likes of Honda and Yamaha sell for an average of Rp 15 million.

Garansindo has long focused on the import segment, which, given Indonesia’s high taxes on imported motor vehicles, is a market geared toward more affluent consumers. The company also distributes car brands such as Alfa Romeo and Jeep.

“Indonesia is the third-biggest market for motorcycles, after China and India,” Eric Mougin, vice president of product marketing and design at Peugeot Scooters, said at the motor show.

“If we want to be a major player, we have to enter Indonesia. If we can grab a few percent of the market share [in the premium market] here, we’d be happy.”

The Indonesian premium motorbike market has long been dominated by Harley-Davidson and Ducati, but Garansindo is hoping to spur interest in lesser-known brands even as the motor vehicle market continues to slump on the back of weaker consumer purchasing power, tighter import regulations for both motorbikes and cars, and a depreciating rupiah.

Motorcycle sales in the first seven months of the year, at 3.596 million units, are down 24 percent from the same period last year. Sales in July of 421,838 units are down 27 percent drop from July last year.

“We’re currently in a crisis, but we have to remember that it’s [situational],” said Dhani Yahya, the managing director of Garansindo Technologies. “Soon there would will a pick-up [in demand].

“We’re focusing on entering the market first and introducing the brands properly,” he added. “There’s already a market for premium motorcycles here in Indonesia. That’s where we’re setting our sights.”