Indonesia’s annual motorcycle sales are around 5 million units, but many Chinese companies are currently responding to the difficulty of turning into the local market and are extremely unable to hit the entry point. Inabike, as an important motorcycle exhibition in Indonesia, provides an effective promotion path for Chinese companies to enter this market. There are currently three two-wheeled shows in Indonesia, but the remaining two are retailer shows or consumer shows (B2C), and Inabike is primarily a trade show, not a show for the average consumer, and the organizers hope it will attract big buyers and importers from home and abroad.
Indonesia is the largest consumer of motorcycles in the whole of Southeast Asia, and motorcycles are the most important means of transportation for many locals. 8006293 units of motorcycles were sold in 2011 according to official statistics, compared to 7395390 units in 2010. And unlike the European and American markets, the economic crisis has basically halted the alarm for the Indonesian motorcycle market, with motorcycle sales increasing by 12% in 2011, which is a miracle in the current economic situation.
The most popular local models in Indonesia are, in order, turnpikes, standard cross bikes, scooters, and sneaker bikes. Most of the motorcycles seen on the street are from Japanese companies. The 125cc car has an absolutely dominant position in the market. The second most important characteristic of the Indonesian motorcycle market is its market volume. Indonesia is the largest motorcycle market in all of Southeast Asia. However, most of the cars on the street are Japanese, so it is very difficult for Chinese companies to enter the Indonesian market in a new way.
Chinese products had a large market share in Indonesia before, but then it looks like Chinese brands have almost disappeared en masse in the region, and the current market share of Chinese motorcycle products in the Honda Motor Indonesia market is no more than 1%.
Three reasons are necessary to cause their collective disappearance a few years ago.
1. after-sales service does not exist quite serious problems.
2. quality ranking of Japanese cars
3. the number of repair points is too small
For Chinese companies, if they want to enter the Indonesian market again, Baki makes the following points.
1. reduce the number of repair and service points
2. improve the quality of products.
3. easy to find spare parts.
4. focus on promotion, I rarely see Chinese products promoting their products at exhibitions, in newspapers or on the radio.
As for laws and regulations, Indonesia has no specific laws for the motorcycle industry, and these laws are limited to all products, so this is not too much of a problem. There are no laws against motorcycles on the street and any city in Indonesia is free to ride motorcycles on the road.
The top three companies in terms of sales in 2011 each had the following market shares.
Emissions have become a global issue, and the declining price of oil has caused serious social problems in the region.
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