Robust growth of automotive manufacturing industry owing to growing export and favorable government policies are the key factors driving the demand for tyres in Indonesia over the past few years. In recent years, the sale of passenger cars has ramped up on account of availability of loans on easy terms which led to the growth of the tyre market. Further, government policies such as import quota regulation and favorable FDI guidelines would encourage companies to establish manufacturing units in the country which would further boost the growth of tyre industry in the region over the coming years.
According to 6Wresearch, Indonesia tyre market revenues are projected to grow at a CAGR of 9.8% during 2019-25. Rising investment in automotive manufacturing by domestic as well as international companies owing to low per capita-car ownership, low labor costs and rapidly increasing middle class income population would drive the Indonesia tyre market during the forecast period. Additionally, growing popularity of low-cost green car (LCGC) and low sport utility vehicle (LSUV) across the country would further provide an impetus to the Indonesia tyre market. Further, due to increasing urban population, government is spending significant amount on infrastructure development and other investment to support growth of the smaller cities that would integrate the new urban citizens. This would lead to an expansion of automotive fleet and in turn would also ramp up the tyre market during the forecast period.
According to Ravi Bhandari, Manager, 6Wresearch, "The passenger car category is expected to witness highest market growth over the coming years, much of which can be attributed to the growing rate of personal vehicle ownership across the country, primarily in developing regions such as Java and Jakarta, where the standard of living has considerably improved during the past years. Moreover, Indonesian government is eager to turn Indonesia into a global production base for car manufacturing which would result in establishing factories by automotive manufacturers. This would further drive the market for passenger car tyres in the country.
"Additionally, based on origin, tyre market has been categorized into local manufactured and import tyres. The local manufacturing segment would capture register significant growth throughout the forecast period on account of favorable government policies, easy availability of raw materials and low labor cost," Ravi further added.
According to Vikrant Tomar, Research Analyst, 6Wresearch," During the forecast period, the market is expected to witness considerable growth in the category of radial tyres, owing to the benefits offered by these tyres over bias tyres such as lower transversal slip, greater power transfer, lower fuel consumption, less ground damage, and higher vehicle efficiency.
"The growth of the logistics sector due to developing road infrastructure as well as growing e-commerce market would also boost the tyre market in Indonesia. Further, Indonesian government is highly focused on developing domestic road networks to catalyze the road transportation in the country," Vikrant concluded.
Some of the leading companies in Indonesia tyre market include PT Multistrada Arah Sarana Tbk., PT Bridgestone Tyre Indonesia, PT Gajah Tunggal, PT Goodyear Indonesia, PT Sumirubber Indonesia-Dunlop, Hankook Tyre, MRF, and Apollo Tyres.
"Indonesia Tyre Market (2019-2025)" provides an in-depth analysis more than 50 figures and 5 tables covered in more than 100 pages. The report estimates and forecast the overall Indonesia tyre market by vehicle types, tyre types and origin. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.