Lack of Clarity on Electric Motorcycle Subsidies Causes Sales to Decline

KatadataOTO – The clarity on when electric motorcycle subsidies will be given continues to be a topic of discussion. This is because it is said to have had an impact on sales.

As is being felt by members of Aismoli (Indonesian Electric Motorcycle Industry Association), they claim that interest in two-wheeled electric vehicles has decreased after there was no assistance from the government.

“What's clear is that the industry is complaining a lot now. Because the stock in 2024 is still abundant, there is overcapacity and we can be said to be unable to sell (electric motorcycles) quickly,” said Budi Setiyadi, Chairman of Aismoli, to KatadataOTO on Monday (13/1).

Budi assesses that many consumers are now waiting for assistance like in 2024. This causes them to postpone their purchases.

Photo : TrenOto

As a result, the producers' sales have dropped quite a bit. Then, the existing stock piled up in their warehouses.

“So, sales can be said to have dropped drastically. So, what we really need now is certainty,” he said.

Unfortunately, Budi did not explain the extent of the decline in electric motorcycle sales in the country after the government assistance ran out.

But what is certain is that President Prabowo Subianto and the ministers have not yet decided when the electric motorcycle subsidies will be given. And in what form they will be received by the public.

“For now, the electric motorcycle industry can be said to have not many sales. You could say it has stopped, but there are still sales, just not many,” Budi emphasized.

Aismoli hopes that policymakers will soon decide on regulations related to subsidies for two-wheeled electric vehicles in 2025.

So that the public will be willing to spend their money again. That way, the producers' stock can be sold out quickly.

For your information, Budi previously revealed that they would visit the office of Kemenperin (Ministry of Industry).

This is to push for and ask for certainty regarding when the government assistance will be distributed and in what form.

Photo : KatadataOTO

He stated that this step would be taken next week with the Aismoli board members.

As a reminder, in 2024 the government provided assistance in the form of a Rp 7 million price cut for every purchase of a Honda EM1 e:, Alva Cervo, and others.

The provisions regarding the incentive for two-wheeled electric vehicles are stipulated in Permenperin or Minister of Industry Regulation Number 21 of 2023.