Southeast Asia Two-Wheeler Market: Current Analysis and Forecast (2023-2030)

The two-wheeler market refers to the segment of the automotive industry that focuses on vehicles with two-wheels namely motorcycles and scooters. It encompasses the manufacturing, distribution, sales, and maintenance of these vehicles as well as related accessories. The market consists of both internal combustion engine as well as electric powered vehicles.

The Southeast Asia Two-wheeler market is growing at steady rate of 3.03% in the forecast period due to the rapid urbanization and surge in traffic congestion. The primary challenges associated with the rapid urbanization in Southeast Asia include a high population, road traffic congestion, and insufficient traffic infrastructure. In recent years, countries in Southeast Asia have witnessed significant urbanization. According to a report published by the International Monetary Fund in 2023, the population of Southeast Asia increased from 679.36 million in 2024 to 662.42 million in 2020, and it is projected to reach 706.99 million in 2028. This surge in population has led to a substantial demand for two-wheelers as a means of transportation in the region. Additionally, traffic congestion has become a prevalent issue in many Southeast Asian cities, primarily due to the exponential growth in the number of vehicles on the roads. This problem is exacerbated by inadequate infrastructure, a lack of efficient public transportation systems, increased population density, and a rise in car ownership. Consequently, commuters have increasingly turned to two-wheelers for more efficient transportation, as they can navigate through traffic congestion more effectively. Therefore, the Southeast Asia two-wheeler market is driven by the ongoing urbanization and the need to address traffic congestion.

Based on propulsion type, the market is divided into internal combustion engines and electric vehicles. The internal combustion engine segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. This is primarily driven by a combination of factors such as affordability, performance, range and refueling, and others. Compared to electric powered vehicles the internal combustion engine vehicles are more affordable due to the developed and mature technology and system. Additionally, the production of ICE vehicles is economies of scale due to adequate infrastructure setup by the manufacturers. For instance, according to the report published by motorcyclesdata, the region two-wheeler sales reach 14.7 million units in 2023, an increase of 3.6% from the previous year. Furthermore, ICE vehicles often provide better performance in terms of speed, acceleration, and payload capacity compared to electric vehicles. Overall, the combined factors have created the demand for internal combustion engine vehicles in the region.

Based on vehicle type, the market is divided into motorcycles and scooters. The motorcycle segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. Motorcycles are being extensively used in the region for the transportation of goods and delivery services, and the countries in the region is the hub of tourism, which attracts tourists used motorcycles on rental purpose has catered the demand for the segment. For instance, according to the report published by PT Astra International TBK, in 2023, Indonesia's motorbike sales surged 19.4% to 6.2 million units, within AISI's target range of 6.1 - 6.2 million units. Moreover, the growing sales of motorcycles in the region due to the increasing private company investments in the development of more efficient motorcycles and the launch of new motorcycles.

For a better understanding of the market of the Southeast Asia two-wheeler market, the market is analyzed based on its regional presence in countries such as Indonesia, Thailand, Philippines, Vietnam, and Rest of the Southeast Asia. Indonesian market has dominated the two-wheeler market and is expected to behave in the same fashion due to the large consumer base. As Indonesia is the world's fourth-most-populous country in the world with 279 million people residing in the country. Additionally, due to the increasing demand for economic transportation mode and improved road infrastructure the demand for two-wheeler has increased in the last couple of years. For instance, according to the report published by "The Association of Indonesia Motorcycle Industry (AISI)" a total of 521,424 units sold in the March 2021 which increased to 592,658 units sold in January 2024. Additionally, the Indonesian government tightening its monetary policy, making financing for motorcycle purchases harder. Furthermore, mobility service providers growing rapidly in Indonesia like Gojek, Tokopedia and Bluebird, which accelerated the demand in motorcycles and passenger cars parallelly over the past decade.

Some of the major players operating in the market include PT Astra Honda Motor, Yamaha Indonesia Motor Mfg., Thai Yamaha Motor Co., Ltd., Honda Motor Co., Ltd., Yamaha Motor Vietnam Co., Ltd., Kawasaki Motors, Ltd., Zero Motorcycles Inc., Hero Electric Vehicles Pvt. Ltd, Vmoto Ltd., and AIMA Technology Group Co. Ltd.