Indonesia tire market to grow at 10.10% CAGR through 2019

INDONESIA’S  tire market will expand at a CAGR of 10.10 percent in volume terms from 2014 to 2019, reports a new offering from Research and Markets. 

According to the “Indonesia Tyre Market Forecast and Opportunities, 2019” report, climbing automobile sales in both local and export markets, growing automobile fleet size, abundant supply of raw materials, and support from the government are the key factors driving Indonesia’s tyre market. 

The expansion efforts of major international automobile companies such as Toyota, Suzuki, Volkswagen, Mitsubishi, Honda, Nissan, Volvo, BMW, General Motors, Audi, Renault, Mazda, and Isuzu toward boosting their manufacturing units in the country are spurring demand for tyres in the OEM segment. Another factor driving tire sales is the rising per capita disposable income in the nation, resulting in more people purchasing new cars.

Furthermore, with Indonesia being one of the leading producers of rubber worldwide, the country is a logical choice for the manufacture of tyre in the ASEAN region. Major tire manufacturers, including Continental Tyres, Goodyear, and Michelin, have set up manufacturing facilities in Indonesia to take advantage of the abundant supply of rubber in the country. 

Having the largest fleet size and hosting an auto OEM production base, Java was the highest contributor in terms of volume. As regards automobile type, two-wheeler vehicles grabbed 71.30%  of market share in volume terms in 2013. Passenger cars and commercial vehicles, with a respective market share of 9.75% and 3.16%,  came next.

During the same period, Gajah Tunggal had the largest market share in volume terms. The other major tire manufacturers are Bridgestone, Goodyear, and Michelin.