The increase in fuel prices makes motorcycles more popular in Indonesia, is that right?

Jakarta

Since the government raised subsidized and non-subsidized fuel prices, there has been an assumption that motorcycle sales will increase. This is because people are suspected of starting to object to paying the cost of public transportation such as motorcycle taxis and online taxis, which have recently become increasingly expensive.

Not only that, people who usually go everywhere by car are also said to be switching to motorbikes. The reason is clear, two-wheeled vehicles consume less fuel than cars.

Hmm, is it true that motorcycle sales in Indonesia will increase after the government announces the new fuel price?

Marketing Director of PT Astra Honda Motor, Thomas Wijaya, said that the increase in fuel prices will certainly have an impact on motorcycle sales in Indonesia. However, according to him, the assumption that says ‘must increase’ is not necessarily true.

The Covid-19 pandemic has affected many sectors in the automotive sector.  One of them is the market for buying and selling used motorcycles, which experienced a decline in sales, resulting in decreased turnover.Motorcycle illustration Photo: Rengga Sancaya

“It’s not necessarily the increase in fuel that makes motorcycle sales increase, but it does have an impact. Right, if we see, consumers also have basic needs, if the basic ingredients are good it will definitely have an impact, the community’s priority is of course to primary and secondary,” said Thomas in Karawang, West Java, recently.

As for the selling price, his party admitted that they are still doing research until now. According to Thomas, AHM currently wants to see how consumers’ purchasing power is after the fuel price hike.

“Yes, we will monitor the impact on people’s or consumers’ purchasing power and we are still monitoring the cost of production, we are still studying how big the impact will be. The increase related to world oil prices is also one of the factors that we monitor and study. ” he said.

It is known, the Indonesian Motorcycle Industry Association or AISI previously targeted 5.4 million motorcycle units to be sold domestically by the end of 2022. Meanwhile, as of early September, sales had reached 3.1 million units.

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