Sales of Electric Motorbikes in Indonesia Start to Soar After Subsidies

April 19, 2024, 03.15 PM  | Reporter: Dimas Andi
Sales of Electric Motorbikes in Indonesia Start to Soar After Subsidies

ILUSTRASI. Sales of electric motorbikes at the shopping center, Bintaro, South Tangerang, Monday (11/3/2024). The government officially provides incentives for purchasing electric motorbikes amounting to IDR 7 million. However, there are absolute conditions that must be met by environmentally friendly two-wheeled manufacturers to receive subsidies, namely, they must have products with a domestic content (TKDN) of at least 40%. (KONTAN/Carolus Agus Waluyo)

MOTOR SALES - JAKARTA. After the first quarter of 2024, the sales of subsidized electric motorcycles, a government initiative, have begun to show a positive trend.

According to the Sisapira website, 11,563 units of subsidized electric motorcycles have been distributed to consumers as of Thursday (18/4). This figure slightly surpasses the total distribution of subsidized electric motorcycles in 2023, which was 11,532 units.

The potential for an increase in the number of subsidized electric motorcycles distributed is wide open. The Sisapira site also lists 10,570 units of electric motorcycles currently in the registration process and 897 units verified.

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For your information, this year the government, through the Ministry of Industry (Kemenperin), targets the sale of 50,000 units of electric motorcycles through the subsidy program with a budget of IDR 350 billion. Consumers who want to buy subsidized electric motorcycles will get a discount of IDR 7 million per unit, simply by providing their National Identity Card (NIK KTP).

Budi Setiyadi, Chairman of the Indonesian Electric Motorcycle Industry Association (AISI), believes that the trend of subsidized electric motorcycle sales has been increasing since September 2023, following the government's relaxation of the purchase requirements for these products. Indeed, in early 2024, electric motorcycle sales stalled due to the delay in receiving government subsidies, but this issue did not last long. Once the subsidy budget was disbursed in mid-March, the number of electric motorcycles distributed skyrocketed.

With eight months left in this year, Aismoli hopes that the sales of electric motorcycles with government subsidies can continue to increase and benefit many people. "We are optimistic that we can achieve sales as targeted by the government," said Budi, on Thursday (18/4).

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Aismoli believes that electric motorcycle manufacturers have been quite maximal in conducting sales campaigns through various media channels, including automotive exhibitions.

Aismoli also continues to encourage the development of supporting infrastructure for electric motorcycles, such as charging and battery swap stations in various public areas, so that people do not need to worry about using electric motorcycles daily. "This effort will directly and indirectly boost the purchase of electric motorcycles," said Budi.

Meanwhile, the Volta Group believes that the popularity of electric motorcycles has begun to increase in the public eye. Although not explicitly mentioned, the Volta Group claims that its electric motorcycle sales through the subsidy program were quite successful in the first quarter of 2024. "We are very confident that the sales target of 18,000 electric motorcycle units this year will be achieved," explained Okie Octavia Kurniawan, CEO of the Volta Group, on Thursday (18/4).

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The Volta Group relies on electric motorcycle models such as the Volta 401, Mandala, and Virgo. They also introduced a new prototype model, the Volta Cyrus, in February 2024.

Then, Volta focuses on the strategy of providing quality products at affordable prices and in line with market trends and needs. Volta is also intensifying its sales partner expansion throughout Indonesia with a mutually beneficial scheme. In addition, Volta also frequently offers attractive promotions and educates consumers about electric motorcycles.

"We are also building supporting business lines such as sustainable battery replacement stations (SGB) together with partners," added Okie.

According to KONTAN's records, Volta has operated 295 SGB points and plans to add up to 600 points in Indonesia this year.

PT Hartono Istana Teknologi (Polytron) also mentioned that it has sold 4,000 units of electric motorcycles from the beginning of the year to the Ramadan 2024 period, both for the Fox R and Fox S models. Polytron is confident it can surpass last year's subsidized electric motorcycle sales realization, which was 6,000 units.

"The most real challenge at the moment is the lack of education for consumers who will switch to electric motorcycles," concluded Tekno Wibowo, Commercial Director of Polytron, at the end of March.

Editor: Syamsul Azhar

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