Motorcycle Sales Up 7.8% Year-on-Year

Motorcycle sales were up 7.8% for the first 11 months of the year compared to the same period of last year, data from the Indonesian Motorcycle Industry Association showed on Monday -(17/12/07), Agence France-Presse reported.

Nationwide sales in Indonesia, the world's third largest motorcycle market after China and India, reached 4.29 million for January to November, compared to 3.98 million a year ago, the association said.

Domestic motorcycle sales reached 486,977 in November, up 15.3% from 422,390 in October, when sales dipped due to reduced working days resulting from a lengthy holiday.

The November figure was the highest since December last year, but was lower compared to sales of 524,067 in November 2006.

Total investment of $250 million is expected in the industry next year on continued optimism over the market, Asia Pulse reported on Tuesday.

Yamaha, the second market leader, plans to increase investment by $40 million while newcomer TVS Motor from India is to spend $57 million for capacity expansion.

The motorcycle producers are confident the market will expand by a further 10-11% next year after a strong revival this year from a slump in 2006, an official from the industry ministry said.

This year sales are forecast to reach 4.6 million units up from 3.19 million units in 2006 and next year the figure is predicted to scale up further to a new peak of 5.2 million units.

Land Transport Director General Budi Darmadi said capacity is expected to expand by as much as 1 million units to 6.5 million units in 2008.
_________________________
Jawawa.net: Indonesian Business and Investment News Aggregator