Factors Driving New Motorcycle Market Growth, Tax as the Deciding Factor

KatadataOTO – Demand for new motorcycles in Indonesia is expected to remain stable in 2026. In fact, the Indonesian Motorcycle Industry Association (AISI) has already set a target for this year.

They are aiming for 6.4 million to 6.7 million units to be successfully sold by Astra Honda Motor (AHM), Suzuki, Yamaha, Kawasaki, and TVS.

However, according to AISI, there are several determining factors in the growth of the new two-wheeled vehicle market.

“For the gasoline motorcycle industry, there should be no changes in taxation,” said Sigit Kumala, Head of the Commercial Division of AISI, to KatadataOTO some time ago.

Photo: KatadataOTO

Sigit explained that if there is an increase in the motor vehicle tax (PKB), it will affect the selling price of vehicles.

If this happens, the demand for new motorcycles in the country in 2026 will be affected.

People will postpone purchasing two-wheeled vehicles. They will choose to save their money or buy used motorcycles.

On the other hand, the implementation of the PKB and BBNKB surcharge in several regions has the potential to change. This is because last year's tax relaxation was only temporary.

“There shouldn't be a significant (tax) increase, because every year there is already a definite increase of about 10 percent from new motorcycle price adjustments,” Sigit continued.

If possible, the government should look further ahead when establishing a new policy. It should not burden the public or industry players.

In addition, President Prabowo Subianto and his ministers are also asked to maintain the rupiah's exchange rate against foreign currencies.

“The rupiah exchange rate can also determine the selling price, because in a situation like this, we are trying to maintain the ecosystem,” Sigit emphasized.

A high rupiah exchange rate against the US dollar, for example, will have an impact on manufacturers' spending on raw materials.

Considering that there are a number of components in two-wheeled vehicles that are not produced domestically, such as semiconductor chips.

Photo: Courtesy

For your information, new motorcycle sales are also influenced by several factors. For example, the global geopolitical situation.

Commodity prices and weather conditions will also affect the stability of the public's purchasing power for two-wheeled vehicles this year.

AISI believes that strong support from financing institutions is considered capable of driving sales realization in the domestic motorcycle market.