Indonesia’s sales of motorbikes projected to plunge 45 percent this year

A Honda worker in Indonesia (Photo: otomotif.kompas.com)

Jakarta (VNA) – Motorcycle manufacturers in Indonesia have started to adjust sales target this year due to impact of the COVID-19 pandemic, announced the Indonesian Motorcycle Industry Association (AISI).

Earlier, AISI set a target of having about 6.5 million motorcycles sold for the whole year. However, based on the real situation, it must narrow down the figure by 45 percent.

Chairman of AISI’s Commercial Division Sigit Kumala said motorbike sales constantly increased in the past years. However, as of July 2020, sales had only reached 2.1 million units, much lower than the figures of the previous two years’ same period.

Indonesia’s motorbike sales hit about 6.5 million in 2019 and 6.3 million in 2018.

The ravaging pandemic has dealt a blow to the Indonesian economy as many factories halted operations, which directly affects AISI motorcycle sales in 2020, coupling with a weakening of the people’s purchasing power for tertiary needs.

AISI hopes that the zero percent tax incentive will be applied to both the four-wheeled and motorbike industries so that the sector can surmount current hardships./.