Indonesia has been witnessing significant increase in tire market over the last few years.

The country has been witnessing significant rise in domestic tire sales as well as tire exports developed markets like the United States, Europe, etc. According to ‘Indonesia Tire Market Forecast & Opportunities, 2019’, the tire market in Indonesia is forecast grow at a CAGR of around 10.10% in volume terms during 2014-19.

Growing automobile sales in domestic market as well as export market, rising automobile fleet size, availability of raw material in abundance, and encouraging government policies are the major factors expected drive Indonesia tire market during the forecast period.

Owing to the largest fleet size and auto OEM production base, Java is the highest contributor in Indonesia tire market in volume terms. In 2013, Two-wheeler occupied about 71.30% market share in volume terms, followed by passenger cars and commercial vehicles with 9.75% and 3.16% market share, respectively, in volume terms.

Gajah Tunggal is the market leader in Indonesia’s tire market, holding highest market share in volume terms in 2013. Other prominent tire players operating in the market are Bridgestone, Goodyear and Michelin. “Indonesia Tire Market Forecast and Opportunities, 2019” discusses the following aspects:

The fact that Indonesia is one of the leading rubber producing nations across the globe also makes the country an ideal choice for tire manufacturing in the ASEAN region. Due such an abundance of rubber resource, major tire manufacturers including Continental Tires, Goodyear and Michelin have established their production plants in Indonesia.

Rising per capita disposable income is another major factor driving growth in tire sales in Indonesia as people are increasingly buying new cars. As a result, major global auto companies like Toyota, Suzuki, Volkswagen, Mitsubishi, Honda, Nissan, Volvo, BMW, General Motors, Audi, Renault, Mazda, and Isuzu have expanded their manufacturing units in the country. This, in turn, is driving the demand for tires within the OEM segment.

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