Market Trends of ASEAN 2-Wheeler Rental Industry
This section covers the major market trends shaping the ASEAN 2-Wheeler Rental Market according to our research experts:
Technological Advancements and Traffic Congestion Are Driving the Growth For 2-Wheeler Rental Market
ASEAN cities have jam-packed roads. With the increasing number of vehicles, the existing infrastructure is unable to meet needs in every town and lanes. Traffic congestion inhibits the productivity of people with a lot of time lost waiting. As a result of the ASEAN governments, today are promoting the sales for 2-wheeler as they occupy lesser space resulting in more minor traffic jams.
In the rental segment, despite recent growth for taxi players such as Uber and Lift, significant cities are now switching towards 2-wheeler's ride-hailing apps as well, basically to counter the growing traffic congestions and environmental problems.
Electric 2-wheeler is environmentally friendly, running majorly on Li-ion chargeable battery. It can offer a maximum range of 99.4 miles (160 km) in one single charge. With options of battery typing 8, 12, or 18-amp hour batteries, it also provides choice for the customer as per their utility.
2-wheeler rental companies are stepping up by proving 24/7customer service with free pick-ups and drops are designated locations. Bikes are also providing helmets, first aid kits, and even mounted phone holder for navigation usage. Optional accessories are also famous in tourism spots such as free 4G internet or pocket Wi-Fi to maximize its customer gains.
Indonesia Is the Largest 2-Wheeler Rental Market
The Indonesian 2-wheeler industry is the World's third-largest. Over 20 years, 2-Wheelers is the primary form of the private transport sector for people with an estimation of being six times bigger than the personal car industry itself.
In 2019, Indonesia was also the largest country in the ASEAN region, with reported sales of over 6.5 million increasing at 1.3% from 2018. Honda gained 73% of its market share in 2019, leading the Indonesian two-wheeler market, followed by Yamaha at 21%.
With such a strong preference to 2-Wheelers over 4-Wheelers, the rental business will also see a boom in the coming years. For instance, the car rental market companies have established themselves and contributing heavily towards the organized sector. However, the two-wheeler market is still in its nascent stage and is expected to pick up in the ASEAN market, especially in counties like Indonesia and Thailand. Today, 2-wheeler rental services are offering online systems, including mobile applications, to gain consumers.
The Indonesian government plans to collaborate with the manufacturers to increase the electric vehicle fleet size in the country. In March 2018, the Indonesian government partnered with Honda on the use of E-bikes to help the country reduce exhaust emissions and develop a greener environment. However, the high cost of the battery and thus of E-bikes is the key factor hindering the growth of the market.
