Automotive - Motorcycle sales reached 5.23mn units in 10M23

Automotive - Motorcycle sales reached 5.23mn units in 10M23 The Indonesian Motorcycle Industry Association (AISI) is optimistic that national motorbike sales will continue to accelerate in the last two months of 2023. Based on AISI data, national motorbike sales in Jan-Oct 23 were recorded at 5,237,976 units or an increase of 26.2% yoy. Motor scooters still dominate the national motorbike market with a sales portion of 89.7% yoy. According to AISI the opportunity to increase motorbike sales in Indonesia is quite open in the remainder of 2023. Comment: End year promotion and steady 2W demand likely to support KBVS and AISI ‘23F expectation for motorcycle sales volume to be achieved. In all, 10M23 2W sales arrives above both KBVs and AISI ‘23F expectation at 90.6%/93.5% (historical average of 85%), or equal to around 5,780K units and 5.4mn-5.6mn for AISI target. We believe sales volume will continue to grow positive in the remaining months of this year.