|Title:||Indonesia annual motorcycle sales among AISI members in units and percent change for 2004 to 2010, and partial data for 2011|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Sales of motorcycles by AISI members, 2004-2011
Year Sales (units) Change (%)
2004 X,XXX,XXX 2005 X,XXX,XXX XX.XX 2006 X,XXX,XXX -XX.XX 2007 X,XXX,XXX X.XX 2008 X,XXX,XXX XX.XX 2009 X,XXX,XXX -X.X 2010 X,XXX,XXX XX.XX 2011 * X,XXX,XXX --
Note: *)January--June 2011
Sources: AISI, Data Consult
Motorcycle industry in Indonesia suffered a setback in 2009 with shrinking sales that year as a result of the global financial crisis. Banks were forced to adopt a tighter money policy and financing companies were more selective in offering credits including for the purchases of motorcycles. In 2010, however, the condition improved marked with a XX.X% surge in motorcycle sales to a new peak at X.X million units from X.XX million units in 2009.
The growing trend continued in 2011. Some producers, however, are in difficulty to increase their production with the limited production capacity.
A number of producers have made plan for capacity expansion hoping to gain from the fast growing demand and encouraging prospects.
Honda and Yamaha have competed tightly on the domestic market. Honda, however, succeeded in maintaining lead in annual sales although Yamaha managed sometimes to jump ahead in monthly sales in 2010.
In 2011, Honda succeeded again to strengthen its lead in the market. Honda is more aggressive in advertising its products and launching new models. In addition, its has larger capacity than Yamaha. In 2010, the production of Yamaha motorcycles reached X.XX million with capacity at X.X million as against Honda production of X.XX million units with production capacity of X.X million units after capacity expansion in 2010.
The rapid growth of motorcycle sales in Indonesia has given greater optimism for the business players. Some old brands which have disappeared from the market such as Vespa scooter of Italy's Piaggio have made new appearance .
Production capacity increases led by big players
The country's production of motorcycles has continued to increase from year to year boosted by growing demand especially on the domestic market. Producer's especially big players have expanded their production capacity to meet the growing demand.
In 2009, the market demand was weak as a result of the global financial crisis but the condition improved in 2010. The country's economy recovered quickly from the malaise encouraging motorcycle producers to expand their production capacity.
The country's motorcycle production capacity continued to expand in 2010. In 2009, the production capacity reached X.XX million units /year including X.XX million units of producers not grouped in the Indonesian Association of Motorcycle Industries (AISI). In 2010, the production capacity expanded to XX.XX million units per year. The expansion was recorded mainly by the members of AISI up by X.X million units per year
Yamaha and Honda accounted mainly for the expansion of the production capacity in 2010. The production capacity of Yamaha and Honda was expanded by XXX units/year each. The capacity expansion made Yamaha the largest in capacity in 2010 with a production capacity of X.X million units per year, followed by Honda with a capacity of X.X million units per year. Suzuki was by far the third largest after expanding its production capacity by XXX,XXX units/year to X.X million units /year.
In 2011, Honda regained its position by expanding its production capacity by XXX,XXX units per year to X.X million units per year . In 2011, Yamaha made no plan to increase its production capacity .
Despite the growing market and capacity expansion, two producers of brands Kymco and Piaggio were forced to stop operation in 2009 after shrinking sales on failure in marker competition.
PT. Kymco Surya Raya that produced Taiwanese motorcycles Kymco, an automatic scooter closed its factory in Cikarang with a production capacity of XX,XXX units / year.
The country's production capacity is expected to continue to expand in the coming years with some producers planning to invest to expand their production capacity. Yamaha is set to keep to be competitive facing Honda although it had no immediate plan for expansion in 2011.
Players Invest to Build New Factories
The growing market has encouraged foreign principals to make Indonesia as their main market target and as production base for the world market.
Honda Motor Co has indicated interest in making Indonesia one of its main production bases in the world . Honda Motor Co plans to build new factory to expand its production capacity in the country.
The capacity expansion has been planned by Honda Motor Co to meet growing competition in the world including from rivals in China .
Chief Executive of Honda Motor Co, Takanobu, said the new production units to be built in 2011 will have a production capacity of XXX,XXX units per year. The new factory will produce various types of Honda motorcycles. The factory may produce electric motorcycles, Takanobu said.
Meanwhile, Yamaha Motor Company after earlier announced postponement of capacity expansion finally decided to build its third plant in Indonesia to remain competitive facing the market leader Honda. Honda already expanded its production capacity to X.X million units per year. Without expansion, Yamaha will be left farther behind Honda.
The plan to build a new factory by its local unit PT Yamaha Motor Kencana Indonesia (YMKI), however, is still in the early phase of buying land plot for the factory . Information from PT YMKI said investment by Yamaha in Indonesia will follow the market trend in the country. Capacity expansion will be made by phases starting with XXX,XXX units and then XXX,XXX units and XXX,XXX units a year.
Kawasaki also plans to expand its production capacity in 2011. In 2009 its production capacity in Indonesia was only XXX,XXX units per year with capacity utilization of XX percent. The production capacity will be expanded by XXX,XXX units to XXX,XXX units / year by the end of this year. The new factory will be built in Cikarang, West Java.
Production up in 2011
Change in the people's income is a determinant factor on automotive industry. In 2009, Indonesia's economy suffered a setback as a result of the global economic woes.
The condition forced financing firms to be more careful and selective in offering credits for the purchases of motorcycles. Motorcycle sales in the country are financed mainly with credits from financing firms. The sluggish market had also forced producers to slow down production.
The production of motorcycles recorded by AISI members in 2009 dropped X.XX percent to X,XXX,XXX units from the previous year's X,XXX,XXX units. The decline in the production was the second in five years. In 2006, the country's production of motorcycles fell after a XXX% hikes in the price of oil fuels.
In 2010, however, the market recovered quickly as the country's succeeded in averting the worse impact of the global crisis. The purchasing power of the people improved as country's economy grew strongly amid the threat of the global crisis.
In 2010, the country's production of motorcycles surged XX.X% to X.XX million units. In 2011, the production of motorcycles by AISI members is forecast to grow further with some players planning capacity expansion. The production this year is forecast to reach more than X million units.
Production of Yamaha Motorcycles Hindered by Limited Capacity
In 2009, motorcycle industry suffered a setback as a result of the global economic crisis. Banks, which are the main financial sources of financing firms, raised their lending rates, forcing the providers of credits for the purchases of motorcycles to be more selective in financing operations.
In 2009, production of Yamaha, the country's second market leader totaled X.XX million units or XX.X percent of the country's total production Unlike Honda, however, Yamaha still managed to chalks up a X.X% increase in production from X.X million units in the previous year.
In 2009, Yamaha sometimes took lead in monthly production and sales from Honda although in the whole year, Honda maintained the lead. That year, Yamaha was the largest in capacity. However, in 2010, Honda expanded its capacity putting Yamaha behinds.
Average production per month higher in 2010
The production in 2010 increased with the improved condition of the country's economy . Almost all producers recorded higher production per month in 2010 compared to average production per month in 2009.
Honda's average production in 2010 was XXX,XXX units, up from the previous year's average of XXX,XXX units. The production of Yamaha averaged XXX,XXX units per months in 2010 up from XXX,XXX units per month in 2009.
A decline was recorded only by Kanzen with monthly production down on the average in 2010.
Production of Automatic Scooters up
Automatic scooters (Skutik) have become the driving motor for growth of the country's motorcycle industry in Indonesia lately. Demand for skutik has continued to increase from year to year. Producers have also expanded their production capacity for skutik to meet their growing demand.
Producers like Suzuki Indomobil Motor expanded its production of skutik in 2010 from XXX,XXX units to XXX,XXX units.