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New players in the premium motorcycle business are optimistic that they can tap into the Indonesia market despite the sluggish sales the country has been experiencing.
Garansindo Euro Sports, the sole distributor of Italian luxury motorcycle maker Ducati and French Peugeot Scooters, lined up several new models at the Gaikindo Indonesia International Auto Show (GIIAS) in Serpong, Banten, in an attempt to entice people in the middle- and upper-income brackets.
Garansindo became Ducati’s sole distributor in the country in January, taking over from PT Supermoto Indonesia, while Peugeot Scooters made its Indonesian debut in 2015.
“People tend to buy new vehicles in August, plus economic conditions seem better now,” Garansindo managing director Dhani Yahya told The Jakarta Post on Monday.
Indonesia’s economy rose to 5.18 percent on an annual basis in June from a yearly rate of 4.91 percent in March, fueling optimism that recovery is under way. However, the country’s motorcycle sales dropped 27.6 percent year-on-year in July, with 305,153 units sold, a more than 40 percent slump from the previous month.
Astra Honda Motor (AHM), the country’s leading motorcycle manufacturer, said, however, that the domestic market for premium bikes was still promising and expected its marketing of its big bike model BR250RR to strengthen its grip in that segment.
At the country’s biggest auto expo, Ducati rolled out four new motorcycles in the 959 Panigale, Hyperstrada, Hypermotard 939 and Xdiavel S models, priced at Rp 658 million (US$50,008), Rp 570 million, Rp 515 million and Rp 988 million, respectively.
Apart from the new models, Dhani said that it was banking on the Ducati Scrambler Sixty2, which made its Indonesian debut in April, to meet demand for entry-level premium motorcycles.
The Scrambler Sixty2, named after the year when Ducati first produced its Scrambler model, is equipped with a 400 cc air-cooled engine and is priced at Rp 219 million, discounted to Rp 199 million for GIIAS visitors.
“We see the price as affordable for middle-income people between 30 and 40 years old, such as managers and entrepreneurs wanting to upgrade their style,” Dhani said.
In May, Garansindo opened up its flagship store in the elite Kemang, South Jakarta, said to be Ducati’s largest dealership after its outlet in New Delhi, India.
The 3,000 square-meter flagship store is also equipped with Ducati’s one-stop service, spare parts provider and certified used-bike-reseller in the country.
Garansindo also relies on the Peugeot Django 150 model to tap into Indonesia’s growing premium scooter market. At the expo, Garansindo showcased three kinds of Django 150: the Django Sport, Django Evasion and Django Allure, priced at Rp 40 million, Rp 41 million and Rp 43 million, respectively.
Indian motorcycle manufacturer Royal Enfield, which entered Indonesia in January, used the GIIAS opening last week to introduce its new Himalayan motorcycle. The brand currently has four types of motorcycle sold in Indonesia — Bullet, Classic, Rumbler and Continental GT — with prices ranging from Rp 64 million to Rp 172 million.
“We are currently focusing more on introducing the brand and encouraging people to try and feel the riding experience using our products,” said Distributor Motor Indonesia managing director Ade Sulistioputra, whose company is the sole distributor of Royal Enfield in the country.
Meanwhile, Russian heavy sidecar motorcycle manufacturer IMZ-Ural, which made its Indonesian debut at the expo, is upbeat that it can expand its market in Indonesia after achieving overseas success in several regions such as the US, Australia, Europe and South America.
Ural Indonesia CEO Michael Sofyan said the company targeted premium motorcycle buyers in the country as its segment, hoping that Ural’s unique design, which was initially tailored for Russian military officers, would lure them into purchasing its products.
“We are trying to reach big bike communities first,” Michael told the Post.
Fifty-nine-year old Affandi Permana, a visitor at Ural’s booth at the expo, said that he was very eager to purchase the maker’s military-styled Gear-Up model, which is priced at Rp 405 million. “The Gear-Up model represents masculinity,” Affandi said.
