STATE battery company Indonesia Battery Corporation (IBC) is targeting a local market share of up to 30 per cent for electric motorbikes, its chief executive said on Friday (Feb 24), as the government tries to jumpstart the adoption of electric vehicles (EV).
The government is aiming to reach 2 million sales of electric motorbike in 2025 as the Indonesia attracts billion of US dollars of investment in processing its rich nickel reserves into battery materials.
Indonesia sold less than 40,000 electric motorbikes between 2019 and 2022, while its total motorbike sales in 2022 alone were 5.22 million units, industry data showed.
IBC last year acquired majority stakes in Wika Industri Manufaktur, producer of electric scooters Gesits, which currently has production capacity of 40,000 units per year.
“In the next few years the capacity could reach 75,000 to 100,000 units. So of the total government target, our target is to have 25 per cent to 30 per cent market share, which is already pretty good,” IBC chief executive Toto Nugroho (in the picture) told Reuters.
Indonesia is planning to contribute 7 million rupiah (S$618.6) to the purchase of each electric scooter to incentivise sales, which Toto said would result in a demand surge.