Indonesia boosts e-bike subsidies to spur market growth

Indonesia boosts e-bike subsidies to spur market growth

Indonesia’s government has recently expanded its policy of subsidizing electric motorcycles, with citizens over the age of 17 receiving discounts of up to Rp7 million (about $460) on the purchase of electric motorcycles, according to Antara news agency. You can also explore the top 5 electric motorcycle brands in Pakistan for your reference.

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    Consumer concerns when buying

    The government has gradually expanded the scope of its assistance since it first provided grants to specific groups of people in March last year.

    However, despite increased government subsidies, acceptance of electric motorcycles in Indonesia has not risen as much as expected, and some Indonesians are still wary of purchasing electric motorcycles.

    According to a CNN survey, Indonesian electric motorcycle brands include local brands such as Viar, Selis, Gesits, Alva, and China’s Wuling. The prices of these electric motorcycles range from R$4.8 million to R$37.75 million. Who are the top 10 electric bike manufacturers in Indonesia?

    Consumer concerns when buying

    In response, some Indonesians interviewed said that despite the expansion of the subsidy policy, the price of electric motorcycles is still relatively high and beyond their budget.

    At the same time, they are not familiar with the brands of electric motorcycles available in the market, which has also become a concern for them when purchasing.

    “The motors are also not rigid and unstable. Resale is difficult and resale prices are lower (and lower). After-sales (service) is also not guaranteed, such as the availability of spare parts” , and like many Indonesians, Suryadi said “I am not interested in buying it because the price is still too high. Also, the brand is not familiar (to me), I just heard about it”.

    The resident of Subang, West Java added, “If it breaks down, where can I find spare parts? If it is a well-known brand such as Honda, Yamaha or Suzuki, the situation is different. Considering the current economic situation, the price does not make sense.”

    Agung Purwadi, who lives in Bekasi, said buying an electric motorcycle was beyond his budget. He added that battery packs used to power electric motorcycles can lose capacity over time and cannot be recharged anywhere. Who are the top 10 two-wheeler battery companies in the world?

    Indonesia boosts e bike subsidies to spur market growth 2

    What is the focus of consumers' attention on electric motorcycles?

    In addition, battery life, charging facilities and after-sales service of electric motorcycles are also a major concern of consumers. Some users are concerned that e-scooters’ battery packs may lose capacity over time and charging facilities are not convenient enough.

    And the lack of guaranteed after-sales service for electric motorcycles, such as the availability of spare parts, also adds to consumers’ concerns.

    At the same time, the physical characteristics of electric motorcycles have also raised some concerns. For example, some users are concerned that e-scooters may not be able to support the weight of a heavier passenger, or may be too quiet during driving and pose a safety risk.

    The total budget for subsidizing electric motorcycles this year (350 billion rupiah) has also declined compared to 2023 (1.4 trillion rupiah). High prices, unfamiliarity with brands, battery life and charging facilities are among the main factors discouraging purchases.

    What is the focus of consumers attention on electric motorcycles

    The final words

    Despite many challenges, electric motorcycle sales are growing in Indonesia. Data from the Institute for Energy Economics and Financial Analysis (IEFA) shows that sales have grown from about 12,000 units in 2021 to 35,000 units in 2022, an increase of 191%.

    The government also plans to subsidize 50,000 electric motorcycles this year and issue regulations to expand the scope of regulation. You can also explore the top 10 electric bike manufacturers in Southeast Asia for your reference.

    The Indonesian government’s policy of expanding subsidies for electric motorcycles is a positive move that will help promote the popularity of green mobility.

    However, there are still many problems facing the widespread popularity of electric motorcycles, which will require concerted efforts from the government, businesses and consumers.

    The government needs to further reduce costs, increase brand awareness, and address technical and safety issues; companies should strengthen technical research and development and brand building;

    And consumers need to gradually change their mindsets and realize the environmental advantages of electric motorcycles. It seems that the road to the popularization of electric two-wheelers in Indonesia is still long.

    Indonesia boosts e bike subsidies to spur market growth 1

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