INDONESIA ELECTRIC TWO-WHEELER MARKET

Indonesian electric two-wheeler (e2W) market size reached USD 108 million in 2024 and is estimated to reach USD 690 million in 2032, and the market is estimated to grow at a very high CAGR of 26.1% from 2025-2032 driven by the surging EV demand owing to growing environmental concerns and rising fuel prices along with supportive government policies.

Major Market Drivers and Emerging Trends

Electric two wheelers are plugin electric vehicles which use rechargeable batteries to store energy which is then used to drive electric motors. Two common battery types used in these vehicles are lead acid and lithium ion batteries. Driven by technological innovation electric vehicles are seeing rising adoption over traditional models. With a staggering 126 million mopeds and motorbikes, Indonesia trails only India and China as the third largest two wheeler market globally. Drawn by massive market potential in Indonesia, electric scooter manufacturers which are led by Chinese and domestic brands have expanded into the country in recent years.

The Indonesia electric two wheeler market is expected to see strong demand fueled by growing environmental concerns and a consumer shift toward cleaner mobility solutions with worries over air pollution increasingly shaping consumer choices. By generating zero emissions electric two wheelers contribute to the environmental movement and help consumers achieve their sustainability efforts. The rising climate action engagement and green mobility promotion is encouraging consumers to embrace more sustainable alternatives which further drives market growth.

Rising fuel prices are also pushing consumers to seek more affordable options. Electric vehicles offer affordability which makes them an attractive option for those commuting daily especially in metropolitan regions. Electric two wheelers provide significant savings because they require less maintenance and are more energy efficient which makes them an attractive option amid fuel price volatility. Electric two wheelers require less maintenance owing to fewer moving parts than traditional models. The most expensive repair is battery replacement that occurs infrequently.

The government is actively supporting the market through various initiatives. By aiming to reduce subsidies for fossil fuels and lower CO2 emissions the government is encouraging greater demand for EVs. The government has set a plan to minimize carbon emissions by converting 20 percent of fuel powered two wheelers to electric ones which aims for 1.8 million electric two wheelers and plan to phase out all fuel powered models by 2040. Various regulations are being enforced to speed up the EVs production like measures to encourage local component production. Moreover several government policies like exemptions on luxury taxes for green vehicles along with comprehensive corporate tax relief are contributing to market growth.

The government has also unveiled an EV subsidy initiative which the amounts will depend on factors like battery capacity and localization level. Those purchasing an electric motorcycle or converting an internal combustion engine to electric will receive a seven million rupiah subsidy. The policy mandates that only electric motorcycles made in Indonesia with over forty percent of their parts domestically produced qualify for the subsidies. Manufacturers must also refrain from increasing sales prices because of the subsidies. Furthermore the government plans to offer land lease reductions along with infrastructure support and various other benefits to businesses investing in the EV manufacturing facilities in Indonesia.

The rising ecommerce and ride hailing services are further fueling the need for electric two wheelers that offer quicker and more affordable deliveries. Gojek unveiled its zero-carbon initiative which becomes among the first Southeast Asian startups to publicly commit to ESG targets. The company aims to transition its entire fleet to electric vehicles and reach carbon neutrality by 2030. Grab has joined the zero-carbon movement by placing an order for 6,000 electric bikes from Viar Motor and introducing GrabElectric which is a new service that allows users to choose electric or hybrid vehicles for the same cost as traditional rides. The growing ecommerce sector will also drive demand for electric two wheelers for deliveries.

However high battery costs and the growing preference for gas powered vehicles are significant market challenges. Additionally the insufficient infrastructure could hinder market growth because without reliable access to charging stations many consumers are hesitant to switch to electric vehicles. The infrastructure gap present in rural and urban regions further creates doubts about range or practicality. Even though government initiatives and pilot programs have been implemented but the slow development of public charging restricts growth while undermining consumer trust in electric vehicles.

Based on vehicle type, the e-motorcycle segment is expected to experience a higher CAGR in the forecast years. E-motorcycles are increasingly being sought for various applications like racing or daily commuting which is driving the segment growth. The e-scooter segment is also growing. With increasing traffic congestion many people are choosing escooters and mopeds for short trips like grocery shopping. Their small design and practical storage features are particularly appealing to various users from students to city commuters. With their lightweight construction along with pedal assisted capabilities mopeds are attracting consumers who prioritize affordability and sustainable transportation. Their limited top speeds and energy efficiency make mopeds suitable for suburban areas or low traffic environments.

Based on the battery type the sealed lead acid segment is expected to lead the market primarily owing to its comparatively lower price point. Conversely the lithium ion battery segment is projected to witness a higher growth rate. The growing knowledge among consumers about its main benefits like high energy density and durability is driving users to choose vehicles powered by these batteries.

Based on technology type the battery segment is gaining popularity owing to the increasing demand for high performance batteries like NiMH and lithium ion. Batteries are also favored for their efficiency and low weight. But the plugin segment continues to grow driven by its affordability.

Based on voltage type, the 48V battery segment is becoming increasingly popular owing to its strong compatibility with escooters and its ability to deliver superior power performance. Many consumers also prefer voltage ratings above 48V because they need high voltage escooters for extended range commuting.

Top Market Players

Several prominent companies are Honda, Yamaha, Gesits, SWAP, Uwinfly, Gogoro, Viar Motor Indonesia, Selis, Segway Inc, Zero Motorcycles Inc, Yadea among others.

 Key Market Developments:

• • In 2024 Yadea Technology has committed to a major investment to establish production operations in Indonesia. This marked a significant milestone to expand its footprint within Southeast Asia.
  • In 2020, Zero Motorcycles Inc., one of the leader in the electric motorcycle industry, announced its distribution partnership with Garansino Technologies. The distributor will extend the Zero Motorcycles Inc., business operations to a new division within their company.
  • In 2020, Niu International, opened its first Indonesian flagship store in Jakarta. The flagship store is entirely devoted to Niu International brand and its products.

Segments covered in the Report:

The Indonesia Electric Two-Wheeler market have been segmented on the basis of Vehicle Type, Battery Type, Technology Type, Distance Covered, Voltage Type. Based on Vehicle Type, the market is segmented into E-Scooter/Moped and E-Motorcycle. Based on Battery Type, the market is segmented into Sealed Lead Acid and Lithium-Ion. Based on Technology Type, the market is segmented into Plug-In and Battery. Based on Distance Covered, the market is segmented into Below 75 Miles, 75–100 Miles and Above 100 Miles. Based on Voltage Type, the market is segmented into 36V, 48V, 60V and 72V.

Market Segmentation

Indonesia Electric Two-Wheeler Market by Vehicle Type

• • E-Scooter/Moped
  • E-Motorcycle

Indonesia Electric Two-Wheeler Market by Battery Type

• • Sealed Lead Acid
  • Lithium-Ion

Indonesia Electric Two-Wheeler Market by Technology Type

• • Plug-In
  • Battery

Indonesia Electric Two-Wheeler Market by Distance Covered

• • Below 75 Miles
  • 75–100 Miles
  • Above 100 Miles

Indonesia Electric Two-Wheeler Market by Voltage Type

• • 36V
  • 48V
  • 60V
  • 72V

Indonesia Electric Two-Wheeler Market Leading players

• • Honda
  • Yamaha
  • Gesits
  • SWAP
  • Uwinfly
  • Gogoro
  • Viar Motor Indonesia
  • Selis
  • Segway Inc
  • Zero Motorcycles Inc
  • Yadea