Motorists commute in a traffic jam in Bogor on April 25, 2023, as people return to the cities after celebrating the Eid al-Fitr holiday. Photo by AFP
Indonesia’s motorbike market remained the largest in Southeast Asia last year, followed by Vietnam, the Philippines, Thailand and Malaysia, all posting growth in sales.
Indonesia showed signs of deceleration with sales growing 0.6% to 6.55 million units, according to research company Motorcycles Data.
The growth rate was slower than 2024 when the market – ranking third in size globally – expanded by 2.1%.
The Indonesian electric motorbike market struggled last year as manufacturers operated in an “increasingly uncertain policy environment,” the company said, adding that government incentives introduced in mid-2023 expired in 2024-end and were repeatedly postponed for renewal throughout 2025.
Authorities ultimately announced that no new electric vehicle incentives would be introduced, creating a highly unstable framework for investment and market development.
Some manufacturers, however, continued to bet big on the largest Southeast Asian market.
Chinese electric motorbike producer Yadea’s new factory is set to be completed this year with an annual production capacity of 300,000 units.
In Southeast Asia, Vietnam ranked second in market size with 3.4 million units sold. It posted the largest growth in the region at 14.9%, driven by a surge in sales of electric motorbikes made by local manufacturer VinFast.
The Philippines ranks third in market size with 2.37 units sold last year, up 2.8% from 2024. The electric segment continues to underperform expectations.
While still marginal in absolute terms, electric vehicle sales saw initial growth following the entry of several Chinese manufacturers.
Thailand’s market jumped 9.8% to 1.73 million units securing the 4th place, while Malaysia ranked fifth with 614,000 units, up 3.5%.
