Report Overview

Indonesia Tire Market - Industry Trends & Forecast Report 2028

Indonesia Tire Market is thriving and projected to grow at a CAGR of 9.9% during 2022-2028 (forecast period). Due to rising disposable income and a growing fleet of automobiles, Indonesia's tire market is growing substantially. Furthermore, the Indonesia tire market is driven by growth in two-wheeler sales and favorable macroeconomic conditions. People in Indonesia prefer to use two-wheelers due to traffic congestion, which has led to an increase in their sales and a consequent increase in tire demand. Indonesia's tire market is flourishing both domestically and internationally due to favorable government FDI policies and import quota regulations. In addition, Indonesian players are drawn to the market because of its good macroeconomic conditions promising economic growth and profitability.

Indonesia Tire Market Overview

Tires are an important component of a vehicle and form a point of contact between automobile and tire surface. Tires are ring-shaped vehicle components made of rubber and are used to shield the wheel's rim outwardly. A tire is a ring-shaped structure attached to a wheel rim, and it provides traction on the surface that the wheel is traveling on. Tires for bicycles and automobiles are typically pneumatically inflated structures that provide a flexible cushion for absorbing shocks as the tire rolls over rough sections on the road. Indonesia tire market is gaining traction both domestically and internationally. The market is driven by an increase in automotive production & sales across diverse vehicles segment.

Indonesia Tire Market Trends

Growth Drivers

Increased demand for two-wheelers driving tire market

The middle class of Indonesia is growing at a healthy rate and is responsible for the rapid growth of Indonesia's automotive industry. According to the World Bank, there were more than 52 million economically secured Indonesians in 2020. Over the years, Indonesia's automotive industry has witnessed rapid development, especially during the commodity boom period.

After China and India, Indonesia is the third-largest market for motorcycles. According to the ASEAN data portal, nearly 213.3 million motorcycles were registered in Indonesia in 2019. Motorcycles are the most used means of transport in Indonesia for both rich and poor. Thus, the ever-increasing demand for two-wheelers, especially motorcycles, in Indonesia is creating lucrative market for tires in the country.

Good import-export conditions of automobiles supporting the market

The German-Indonesian Chamber of Commerce and Industry (AHK Indonesien) estimates that Indonesia earned nearly $1.6 billion in 2018 from its tire exports. About 70% of passenger car tires are produced in Indonesia, and 30% of motorcycle tires are exported into over 70 countries across every continent, most of which are delivered to the United States. Since the US increased its tariffs on passenger car tires from China in 2015, the volume of deliveries has continuously increased. Every year, more than 1 million cars and nearly 300,000 commercial vehicles are produced in Indonesia. Traditionally, Indonesia’s automotive market is dominated by Japanese players with ICEs, but new entrants are focusing more on Electric Vehicles. Japanese automobile manufacturers in Indonesia are also increasing their export output and are targeting the ASEAN region. Thus, good macroeconomic conditions and good return opportunities attract powerful players and drive market growth.

Impact of COVID-19 on Indonesia Tire Market

The outbreak of the coronavirus pandemic has given a big blow to the automotive industry in Indonesia. According to the German-Indonesian Chamber of Commerce and Industry, the automotive industry collapsed in the first half of 2020, with sales dropping by more than 40%. There were temporary closures and production cuts to adhere to the social distancing norms. Supply chain disruptions also affected many companies. According to GAIKINDO, the association of Indonesia automotive industries, just 13,800 cars were sold in May 2020, whereas 72,200 cars were sold in the same month of the previous year. With decreasing sales of automobiles, which are the leading end-users, demand for tires was also negatively affected.

Indonesia Tire Market - By Type

Indonesia’s tire market is segmented into Radial and Bias based on tire types. The radial segment held the largest share in 2021 and is expected to dominate the market during the forecast period as well. Radial tires are installed in the majority of vehicles due to their higher puncture resistance capabilities and more flexible sidewalls. Other benefits include reduced ground compaction and harm, fewer replacements, and lower maintenance costs. These factors are driving the growth of the segment.

Indonesia Tire Market- By Application

Based on applications, the Indonesia tire market is segmented into passenger cars, buses, and trucks, OTR (Off-the-road) mining, and two-wheelers. Out of these, the two-wheelers segment dominates the market in terms of revenue and is expected to grow at a healthy CAGR during the forecast period. Most people in Indonesia prefer using two-wheelers due to congestion and poor road conditions, which have led to an increased demand for two-wheelers across the country.

Indonesia Tire Market- By Demand Category

Based on the demand category, the Indonesian tire market is grouped into OEM (original equipment manufacturer) and replacements segments. Out of these, the OEM (original equipment manufacturer) segment is expected to grow at a healthy CAGR in the coming years. The growth of OEM segment can be attributed to favorable profit opportunities for manufacturers and the increasing focus of big players in expanding their business in Indonesia. Furthermore, Indonesia has a good supply of raw materials, such as rubber, which drives the growth of the OEM segment.

Indonesia Tire Market - Competitive Landscape

The key players dominating the Indonesia tire market are Gajah Tunggal Tbk, Bridgestone Tire Indonesia, Multistrada Arah Sarana, Tbk. (Michelin), Inoue Rubber Co., Ltd., Suryaraya RubberIndo Industries (FDR), Timsun Rubber Tire (Weihai) Co., Ltd., Goodyear Indonesia Tbk, Sumi Rubber Indonesia, Hankook Tire Indonesia, Tiga Berlian Mandiri (Tiberman), and other prominent players. The players maintain their dominance in the market by investing in enhanced products and services to customers. Furthermore, some of the common strategies adopted by the market players are collaborations, partnerships, and strategic alliances.

Recent Developments

• In November 2021, based on an annual survey performed by SWA Magazine in collaboration with MARS Digital, PT Bridgestone Tire Indonesia (Bridgestone Indonesia), a global leader in Sustainable Mobility Services and High-Level Solutions, won the Indonesia Best Brand Award (IBBA) 2021 in the "vehicle tires" category.

• In November 2021, PT Gajah Tunggal Tbk, a major player in motor vehicle tires in Indonesia announced that they plan to boost their sales through the digital sales channel. To that end, the company collaborated with Gtech Digital Co. Ltd., which will build an integrated system for sales and marketing.

Scope of the Report:

By Type

• Radial
• Bias

By Application

• Passenger Cars
• Buses and Trucks
• Two Wheelers
• Off-the-Road mining

By Demand Category

• OEM
• Replacement

By Distribution Channel

• Online
• Offline

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Primary & Secondary Research End-use Vendors
      2. Secondary Research
      3. Primary Research
   4. Assumption & Limitation
3. Executive Summary
4. Indonesia Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Porter’s Five Forces Analysis
      1. Bargaining End-use Industry of Suppliers
      2. Bargaining End-use Industry of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
   4. Recent Development/ Technological Advancement
   5. Regulatory Insights
5. Indonesia Tire Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Radial
         2. Bias
      2. By Application
         1. Passenger Cars
         2. Two Wheelers
         3. Buses and Trucks
         4. (Off-the-road) OTR mining
      3. By Demand Category
         1. OEM
         2. Replacement
      4. By Distribution Channel
         1. Offline
         2. Online
6. Competitive Landscape
   1. List of Key Players and their Offerings
   2. Company Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Competitive Benchmarking, By Products Offerings
7. Impact of Covid-19 across Indonesia Tire Market
8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

8. 1. Gajah Tunggal Tbk
   2. Bridgestone Tire Indonesia
   3. Multistrada Arah Sarana, Tbk. (Michelin)
   4. Inoue Rubber Co., Ltd.
   5. Suryaraya RubberIndo Industries (FDR)
   6. Timsun Rubber Tire (Weihai) Co., Ltd.
   7. Goodyear Indonesia Tbk
   8. Sumi Rubber Indonesia
   9. Hankook Tire Indonesia
   10. Tiga Berlian Mandiri (Tiberman)
   11. Other Prominent Players.
9. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in the final deliverable

**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable

List of figures

1. Indonesia Tire Market Segmentation
2. Indonesia Tire Market Value Chain Analysis
3. Company Market Share Analysis, 2021
4. Indonesia Tire Market Size, By Value (USD Million), 2018-2028
5. Indonesia Tire Market Share (%), By Type, By Value, 2018-2028
6. Indonesia Tire Market Share (%), By Application, By Value, 2018-2028
7. Indonesia Tire Market Share (%), By Demand Category, By Value, 2018-2028
8. Indonesia Tire Market Share (%), By Distribution Channel, By Value, 2018-2028

List of Tables

1. Indonesia Tire Market Size, By Type, By Value, 2018-2028
2. Indonesia Tire Market Size, By Application, By Value, 2018-2028
3. Indonesia Tire Market Size, By Demand Category, By Value, 2018-2028
4. Indonesia Tire Market Size, By Distribution Channel, By Value, 2018-2028
5. Gajah Tunggal Tbk Financial Analysis
6. Gajah Tunggal Tbk Business Overview
7. Bridgestone Tire Indonesia Financial Analysis
8. Bridgestone Tire Indonesia Business Overview
9. Multistrada Arah Sarana, Tbk. (Michelin) Financial Analysis
10. Multistrada Arah Sarana, Tbk. (Michelin) Business Overview
11. Inoue Rubber Co., Ltd. Financial Analysis
12. Inoue Rubber Co., Ltd. Business Overview
13. Suryaraya RubberIndo Industries (FDR) Financial Analysis
14. Suryaraya RubberIndo Industries (FDR) Business Overview
15. Timsun Rubber Tire (Weihai) Co., Ltd. Financial Analysis
16. Timsun Rubber Tire (Weihai) Co., Ltd. Business Overview
17. Goodyear Indonesia Tbk Financial Analysis
18. Goodyear Indonesia Tbk Business Overview
19. Sumi Rubber Indonesia Financial Analysis
20. Sumi Rubber Indonesia Business Overview
21. Hankook Tire Indonesia Financial Analysis
22. Hankook Tire Indonesia Business Overview
23. Tiga Berlian Mandiri (Tiberman) Financial Analysis
24. Tiga Berlian Mandiri (Tiberman) Business Overview