Indonesia's motorcycle sales rise 44%

Despite recent rises in fuel prices and lending interest rates, motorcycle sales in Indonesia rose 44% in the first half of this year compared to the same period last year, according to reports. “The industry sold more than three million motorcycles in the first six months, compared to 2.1 million last year,” Gunadi Sindhu Winata, head of the Indonesian Motorcycle Industry Association (AISI) and CEO of Indomobil Group, said. Gunadi predicts that motorcycle makers will raise their prices by the end of July or early August to compensate for higher transportation costs due to expensive material costs and the latest fuel hike. “It (the rise) will be moderate to avoid a huge impact on the customers, probably around 5%,” he said, adding that many manufacturers would soon launch new products. In the first half of the year, the market continued to be dominated by Japanese makers Honda, Yamaha and Suzuki, which together accounted for 98% of the total market share. (July 9, 2008)