umbling electric motorcycle sales in the first half of 2025 have left manufacturers with increasing inventories, prompting production cuts as the industry awaits clarity on government subsidies.
Budi Setiyadi, chairman of the Indonesian Electric Motorcycle Industry Association (Aismoli), said sales were down between 20 to 30 percent year-on-year (yoy) in the first six months, leading original equipment manufacturers (OEMs) to scale back output.
“Once sales slow, stock builds up at dealers and factories. We’ve reduced production accordingly,” Budi said on Sunday, as quoted by Kontan.
Read also: Electric motorcycle sales drop 40% amid subsidy uncertainty
He added that the slowdown was mainly linked to uncertainty over the continuation of government subsidies for new purchases, which both consumers and producers deem crucial for planning purchases and production.
The association’s data shows 63,146 subsidized electric motorbikes were sold in 2024, averaging around 5,100 units per month. In contrast, sales in the first half of 2025 plummeted 30 to 40 percent lower, with the steepest drops reported by manufacturers affiliated with the association.
To offset weak consumer sales, manufacturers also began pursuing business-to-business (B2B) partnerships with logistics and transportation companies, although electric motorcycles currently account for only about 1 percent of this market.
“B2C [business-to-consumer] remains the main target for manufacturers, but momentum is still lacking,” Budi said.
The market for individual consumers remains sizable, he said, as with electric bicycles, with some factories selling 500,000–700,000 units annually, highlighting sustained public interest in electric mobility.
The government was set to reinstate incentives for electric motorcycle purchases in August, Deputy Industry Minister Faisol Riza said in July, but that has yet to happen.
Faisol said Finance Minister Sri Mulyani Indrawati had approved a Rp 250 billion (US$15.38 million) budget for the renewed program.
Read also: Electric two-wheeler incentives back in August, govt says
Indonesia’s two-wheeler subsidy program, which ended late last year, had supported around 90 percent of electric motorcycle sales and helped build momentum over the previous two years.
Under the previous scheme, buyers were eligible for a Rp 7 million subsidy for new electric motorcycle purchases and Rp 10 million to convert gasoline-powered bikes into electric powertrains.
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