Bike Market Size in Indonesia

Indonesia‘s bike market is one of the largest in Southeast Asia, reflecting the nation’s heavy reliance on two-wheelers for daily commuting. In 2023, the new bike market recorded sales of approximately 5.4 million units, contributing to a market value of around IDR 94 trillion. The used bike market is equally significant, with an estimated 4.5 million transactions annually, generating a market value of IDR 48 trillion. Together, these markets highlight the strong demand for affordable and practical transportation options in urban and rural areas, cementing bikes as a cornerstone of Indonesia’s mobility landscape.

New Bike Market in Indonesia

The new bike market in Indonesia is tremendous and still growing. Increasing urbanization, expanding disposable incomes, and the use of private transportation in such a populated region would encourage the need for new bikes. In 2023, the new bike market in Indonesia sold around 6.5 million units of new bikes; hence, the demand is always very high.

Motorcycles are the best-selling new bike by category. These categories include:

• Scooters: Scooter is good, easy to ride, and become the most preferred choice by commuters who go to the city.
• Sports Bikes: High growth among enthusiasts who like performance and style.
• Underbones and Mopeds: Better suited for rural areas because they are tougher and affordable.
• Electric Bikes: It’s growing popularity as eco-friendly options become more accessible.

Some of the major manufacturers like Honda, Yamaha, Suzuki, and Kawasaki dominate the marketplace for all sections of society. Bikes, with financing options and fuel efficiency, are yet again a highly sought-after product.

Also Read: Top 10 Affordable Bikes in Indonesia

Used Bike Market in Indonesia

The used bike market in Indonesia is also pretty important as the cheapest option against a new bike for budget-conscious buyers. In 2023, around 4 million transactions stood testimony to its robust demand.

Major drivers of the used bike market are:

• Affordability: Used bikes are way cheaper compared to new ones, hence accessible to low-income groups.
• Availability: There are vast and diverse models and brands, ranging from Indian to Japanese, each satisfying different needs.
• Ease of Purchase: Used bikes are sold through informal markets, internet portals, and local dealerships.
• Resale Value: Most Indonesian people choose motorcycles because they have a better resale value, especially for well-known brands.

The used bike market has changed the scenario and other specific bicycle websites connect the buyer with the sellers easily. But the buyers have to be aware of the condition and history of the used bikes because mostly hidden problems occur in them.

Market Share: New vs. Used Bikes

The market of bikes in Indonesia is categorized into new and used. New bikes capture 60 percent of the market share, which has been supported through aspiration-driven and new user-purchases. On the contrary, the used bike market is 40 percent, targeting cost-sensitive customers in search of a cheap solution or some type of transient answer.

Bike Market Trends

• Go Electric: With environmental awareness and government incentives on the rise, electric bikes are garnering immense attention.
• Digitization of Sales: Online platforms and apps have made the process of buying a new bike as well as a used bike much easier.
• Access to Finance: Easy access with lower interest rates enables hassle-free affordability of bikes
• Improvement in Safety Features: Modern Bikes acquire improved safety features, thereby targeting consumers who are primarily concerned about safety.

Why Bicycles Continue to be Popular in Indonesia

• Cost: Bikes are cheaper to buy, maintain, and fuel compared to cars.
• Traffic Solutions: In cities like Jakarta, bikes navigate traffic more efficiently than cars.
• Adaptability: Bikes are versatile, serving both urban and rural users.
• Cultural Relevance: Bikes are interwoven into the ordinary Indonesian’s everyday life, from family commutes to small businesses.

Challenges in the Bike Market in Indonesia

• Traffic Congestion: The large scale of bicycles leads to congestion on roads.
• Environmental Factors: The pollution caused by conventional bicycles has created a demand for eco-friendlier variants.
• Safety Factors: There are numerous cases of road accidents due to the existence of bicycles.

Also Read: The 5 Best Electric Motorbikes of 2024 for Daily Riding in Indonesia

Conclusion

The bike market is a very significant force in the transportation landscape of Indonesia. Indeed, 4 million new bikes and 6.5 million used bikes are sold every year; the two-wheeler is an unalienable product for the daily lives of the Indonesian.

As trends like electric bikes and digital sales platforms grow, the market is poised for evolution. Whether new or used, bikes will continue to thrive as Indonesia’s preferred mode of transportation, offering an affordable, efficient, and culturally resonant solution for mobility. For consumers, understanding their needs and market dynamics is key to making informed choices in this thriving market.