Bank Mandiri Projects Motorcycle Sales In 2021 To Reach 4.2 Million Units

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri Tbk's Chief Economist Andry Asmoro said his party predicts domestic motorcycle sales throughout 2021 will grow by 14.5 percent on an annual basis compared to 2020 (year on year/yoy) with an estimated total of 4.2 million units.

"The positive catalyst that drives the increase in motorcycle sales is an increase in consumer confidence and people's purchasing power, which is expected to continue to improve in line with the economic recovery", he said in an official company release, Thursday, June 24.

However, Andry still views that the whole year will run quite dynamically with the main influencing factor being the control of the domestic pandemic.

"The risk factor is overshadowing the performance of motorcycle sales, namely the increase in COVID-19 cases which could slow down the economic recovery", he said.

According to him, with the number of additional COVID-19 cases that has increased sharply recently (data as of June 24, 2021, the national daily COVID-19 cases increased by 20.000 people), the pace of economic recovery could be hampered.

"Currently, the government is tightening the implementation of micro-scale Community Activity Restrictions (PPKM) in a number of big cities in Indonesia which will reduce economic activity in several sectors such as dine-in restaurants, shopping centers, and tourism", he explained.

For information, data from the Indonesian Motorcycle Industry Association (AISI) shows that domestic motorcycle sales in May 2021 were as many as 254.700 units. This number shot up 1.065 percent compared to the same period the previous year with 21.800 units.

“The significant increase in motorcycle sales on a yoy basis is due to the low based effect, where motorcycle sales in May last year were very low. This condition occurs because last year there was a strict Large-scale Social Restrictions (PSBB) implementation which resulted in a decline in economic activity", he said.

Cumulatively, domestic motorcycle sales from January to May 2021 were recorded at 2.02 million units or grew by 17.8 percent yoy from the first five months of 2020.

Meanwhile, the type of automatic scooter or scooter still dominates the market share with a contribution of 86.9 percent. Followed later, motorcycles with 7.0 percent, and sport-type motorcycles with 6.0 percent.