Indonesia Two Wheelers Market Overview, 2030

Indonesia's two-wheeler market, a critical component of the nation's personal mobility and economic fabric, is a global powerhouse currently navigating a period of significant transformation Rapid urbanization and subsequent traffic congestion in cities like Jakarta make nimble two wheelers essential for commuting. Rising disposable incomes among Indonesia's burgeoning middle class enhance affordability, while the inherent convenience and cost-effectiveness of two-wheelers cater to a broad demographic and support the thriving e-commerce last mile delivery sector. The market's dynamics are heavily influenced by the government's aggressive push towards electrification, This policy thrust is driving increased investment in local EV manufacturing. Other notable trends include the continued dominance of automatic scooters due to their ease of use, a growing appetite for premium and performance models as incomes rise, and the increasing integration of smart features for enhanced rider experience. The competitive landscape is dominated by Japanese giants, primarily Astra Honda Motor and Yamaha Motor Co. who collectively command over 80% of the market through strong brand recognition and extensive networks. However, the EV segment is a hotbed of activity, witnessing the rise of local players like Viar and Gesits, alongside significant investments from international players such as Yadea and TVS Motor, all vying for a share in this rapidly evolving market. Further bolstered by rising fuel prices nudging consumers towards more efficient alternatives. However, challenges persist, including the nascent and often inadequate EV charging infrastructure, the higher upfront cost of EVs despite incentives, and consumer anxieties surrounding battery lifespan and replacement.

According to the research report ""Indonesia Two Wheeler Market Overview, 2030,"" published by Bonafide Research, the Indonesia Two Wheeler market is anticipated to add to more than USD 1.90 Billion by 2025–30. The Indonesian two-wheeler market is a highly competitive arena dominated by established players and increasingly shaped by new entrants in the EV sector. Niche players like Suzuki and Kawasaki cater to specific segments, particularly premium motorcycles. The EV landscape is rapidly evolving, with TVS Motor recently launching its iQube scooter, to be locally assembled, signifying a strong commitment. EV startups like Gesits and Viar Motor Indonesia contribute to market innovation and diversity. These collaborations are vital for building a comprehensive EV ecosystem, with examples like Gojek's alliance with Gogoro and Pertamina to pilot battery swapping stations, aiming to electrify ride-hailing fleets. Local EV brands like Gesits and Viar Motor Indonesia are leveraging government incentives and nationalistic sentiment. Battery technology providers are becoming critical enablers by addressing core EV challenges. Ride-hailing and logistics companies like Gojek and Grab are actively pushing for fleet electrification, influencing market direction through their substantial demand. Furthermore, the proliferation of Fintech companies offering ""Buy Now, Pay Later"" BNPL options is democratizing access to two-wheeler ownership, including EVs, for a wider demographic. A robust and standardized battery swapping ecosystem is paramount. This model directly addresses range anxiety and long charging times, offering quick refueling that is especially vital for high-usage segments like ride-hailing and logistics fleets. For businesses operating in Indonesia's two-wheeler market, embracing electrification is no longer an option but a strategic imperative.

The Indonesian two-wheeler market is a colossal and continuously evolving landscape, heavily influenced by urbanization, rising disposable incomes, and a strong push towards sustainable transportation. It stands as one of the largest two-wheeler markets globally, with millions of registered motorcycles across the archipelago. The motorcycle segment, particularly those with manual transmissions often underbones, is a significant part of Indonesia's overall two-wheeler market. While scooters dominate new sales, traditional motorcycles still form a substantial portion of the existing fleet. The Indonesian Motorcycle Industry Association forecasts sales to reach between 6.4 and 6.7 million units. The market is overwhelmingly dominated by Japanese manufacturers such as Honda, Yamaha, Suzuki, and Kawasaki, which also have significant production capacities within Indonesia for both domestic sales and export. Scooters are the largest and most popular segment in the Indonesian two-wheeler market, consistently holding the dominant share. Their convenience, ease of use, fuel efficiency, and ability to navigate through congested urban traffic make them the preferred choice for a vast majority of urban commuters and middle-class families. Honda and Yamaha are the leading brands in the scooter segment, offering a wide range of models tailored to various consumer needs. The moped category often overlaps significantly with the electric two-wheeler segment, particularly with e-mopeds. E-mopeds are gaining widespread popularity, especially as part of micromobility solutions, due to their low travel cost and environmental benefits. They appeal particularly to those who travel shorter distances for daily commuting, with a large percentage of trips being less than a few kilometers. The introduction of swappable battery technology is a key trend in the e-moped and wider E2W market, aiming to increase fleet uptime and reduce operational costs.

The <150 CC segment dominates overwhelmingly, primarily driven by the immense popularity of automatic scooters like the Honda Beat, Honda Vario 125, and Yamaha Mio M3 125. These highly fuel-efficient and agile vehicles are indispensable for daily commutes in congested urban areas and serve as affordable personal transportation for the middle to low-income population, including a vast number of ride-hailing and delivery drivers. The 151-400 CC segment is a growing category that appeals to consumers seeking a balance of practicality and enhanced performance for longer distances. Models such as the Yamaha NMAX 155, Honda PCX 160, and Royal Enfield's 350cc offerings are popular here, catering to riders looking to upgrade for better acceleration and highway cruising. The 401-800 CC segment represents a smaller, more niche market, growing with rising aspirations. These high-performance and versatile motorcycles, including the Benelli Leoncino 500 and Husqvarna Svartpilen 401, offer significant power and features for enthusiasts and those seeking touring capabilities. The >801 CC segment, though the smallest in volume, caters to a premium and luxury market. Driven by affluent consumers desiring exceptional power, comfort, and advanced features, this segment features prestigious brands like Harley-Davidson, Ducati, and BMW, with these motorcycles often serving as lifestyle statements. The light automatic models <150cc like Honda Beat and Yamaha Mio, prized for their ease of use, fuel efficiency, and urban maneuverability. Motorcycles hold a smaller share, offering choices from sport bikes to commuters. The Electric Two-Wheeler segment is rapidly growing from a low base, fueled by government incentives subsidies, VAT reductions and significant foreign investment Yadea, TVS, despite challenges in infrastructure and cost. Mopeds under bone models, though a niche, remain crucial for micromobility, with e-mopeds gaining traction.

The Indonesian two-wheeler market is currently dominated by Internal Combustion Engine (ICE) technology, with traditional powerhouses like Honda and Yamaha. The global ""oil-to-electricity"" transition is pressuring ICE manufacturers to innovate in fuel efficiency and explore hybrid or electric diversifications, as rising fuel prices nudge consumers towards more economical alternatives. In stark contrast, the Electric (EV) two-wheeler segment is the fastest-growing category, albeit from a low base. This segment is poised for exponential growth, with projections of the market size reaching up. Technological advancements in battery range, charging speed, and lifespan are crucial for widespread EV adoption. The market is witnessing substantial investment and new product launches, such as Yadea's new 3-million-unit capacity factory in Karawang and TVS Motor's recent launch of the iQube electric scooter. Despite this rapid expansion, significant challenges persist, including the high upfront cost of EVs, inadequate charging and battery swapping infrastructure, particularly outside major cities, and consumer concerns regarding range anxiety, battery reliability, and resale value. Overcoming these hurdles will be critical for Indonesia to fully realize its ambitious EV transition goals. Furthermore, the increasing digitization of sales and financing is transforming the market. Online vehicle marketplaces and digital loan applications are streamlining the purchasing process, offering greater convenience and accessibility, especially for younger demographics. The government's continued focus on battery standardization for EVs is also key, aiming to ensure compatibility across different brands and ease battery swapping, thus enhancing user experience and accelerating adoption.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Two Wheelers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Motorcycle
• Scooters
• Electric Two-Wheeler
• Mopeds

By Engine Capacity
• <150 CC
• 151 -400 CC
• 401- 800CC
• > 801 CC

By Price
• ICE
• Electric Show more