The Indonesia Tire Market was valued USD3.36 billion in 2021 and is forecast to register a CAGR of 7.11% through 2028 on account of country’s increasing domestic automobile market and increased exports. Moreover, the country is also the second largest rubber producer across the globe.

Recent Developments
Indonesia is third largest two-wheeler market across the globe and the country is also the second largest producer of rubber. There are many key tire companies in the Indonesia Tire Market. Moreover, many companies are investing toward increasing rubber plantation in Indonesia and recently PT Multistrada Arah Sarana Tbk has acquired shares of Michelin Indonesia for around USD 13 million. The companies in the country are also innovating like Bridgestone Indonesia and Soles4Souls Asia, which have partnered to make shoes from recycled tires. Bridgestone also has a plan to expand its production capacities at plants in Indonesia in the coming two years and the company is expected to invest around USD 136 million. The company will cater to the demand by increasing the plant capacity from 45 percent with an production of 27,000 tires.

The leading global tire manufacturer Hankook Tire has been awarded Silver at the Indonesian K-Brand Award 2022. Hankook Tire is also providing NR farmers of Indonesia with eco-friendly coagulants. Michelin has completely acquired Indonesian sustainable rubber plantation project, and this makes Michelin a sole owner of the Royal Lestari Utama (RLU), and this is a joint venture with Barito Pacific Group. The companies are also developing smart and green tires, by using sustainable raw materials for tire manufacturing and the focus on emission targets is also leading companies to focus more on the sustainable products.

The rise in the adoption of the vehicles in Indonesia is leading to a growth of the automobile industry, especially the two-wheeler segment, which is witnessing higher demand and this is consequently leading to a rise in demand for tires in the country and the abundance of the rubber in the country is helping them to lead the export of the tire and rubber globally. The availability of the top tire manufacturers is also adding great value to the Indonesia tire market and the market is expected to witness high growth rate during the forecast period.

Japanese automakers with ICEs have historically dominated Indonesia’s automobile market, but new entrants are concentrating more on electric vehicles. The ASEAN region is the focus of an increase in export production by Japanese automakers in Indonesia. As a result, favorable macroeconomic conditions and lucrative investment prospects draw influential players and spur market expansion.

Increasing Vehicle Ownerships
The growth of the automobile industry in Indonesia has been remarkable and all the vehicle segments are seeing rise in demand. Commercial vehicles utilization has increased because of the ongoing infrastructure projects in the country, and all this has led to the rise in demand for tires in the country. Big automobile companies such as Toyota has witnessed 55.3% year-on-year growth. The tire replacement segment has also witnessed rise in demand because of the increasing construction and infrastructure projects in the country. The rise in the automobile sales in the country is also favoring the growth dynamics and during the forecast years the market is expected to witness the market to generate new growth opportunities.

Raw Material Availability
The adequate availability of the rubber in the country is one of the reasons that is making Indonesia a global tire hub. Many key global tire manufacturers are investing in the rubber plantation in the country. Companies are also focusing on obtaining sustainable rubber and other similar products that can be used as a raw material in the manufacturing of the tires. Overall, the easy availability of the rubber in the country is a crucial factor that is influencing growth dynamics of the Indonesia Tire Market.

Country Specific Regulatory Barriers
The export tire market of Indonesia is affected by the regulatory barriers of different countries. For instance, labeling standards and many other related barriers, become a challenge for the tire manufacturers and such regulatory standards are acting as barriers. Tire manufacturers are required to meet the regulatory frameworks as most countries have specific regulations and quality standards, and the increasing demand for such country-specific regulations is coming out as a challenge for the key tire manufacturers in the country.

The coronavirus pandemic had a significant blow to Indonesia’s tire market. To comply with social distancing norms, there were temporary closures and production cuts. Many businesses were also impacted by supply chain disruptions.


Market Segmentation
The Indonesia Tire Market is segmented based on vehicle type, demand category, tire construction type, rim size, region and competitive landscape. Based on vehicle type, the market is further segmented into passenger car, two-wheeler, OTR-Mining Vehicles, truck & bus. Based on demand category, the market is bifurcated into OEM and replacement. Based on tire construction type, the market is segmented into radial and bias. Based on rim size, the market is divided into Two-Wheeler (Up to 12", 13"-14" and Above 14"), Passenger Cars (Up to 14", 15"-17" and Above 17"), Light Trucks (Up to 13’’, 14"- 15’’ and Above 15’’), OTR (Up to 20’’, 21"- 25’’ and Above 25’’), Heavy Trucks (Up to 20’’, 21"- 22.5" and Above 22.5’’), Medium Trucks (Up to 16’’, 17"- 20’’ and Above 20’’) and Buses (Up to 16’’, 16"-20" and Above 20").


Company Profiles
PT Gajah Tunggal Tbk, Bridgestone Indonesia, Sumi Rubber, Hankook Tire Indonesia, PT Multistrada Arah Sarana Tbk, PT Goodyear Indonesia Tbk, Continental AG, Apollo Tyres, Giti Tire, and MRF Tyres are the leading companies in the Indonesia Tire Market.



Report Scope:
In this report, Indonesia Tire Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
• Indonesia Tire Market, By Vehicle Type:
  –Passenger Car
  –Two-Wheeler
  –OTR-Mining Vehicles
  –Truck & Bus
• Indonesia Tire Market, By Demand Category:
  –OEM
  –Replacement
• Indonesia Tire Market, By Tire Construction Type:
  –Radial
  –Bias
• Indonesia Tire Market, By Rim Size:
  –Two-Wheeler (Up to 12", 13"-14" and Above 14")
  –Passenger Cars (Up to 14", 15"-17" and Above 17")
  –Light Trucks (Up to 13’’, 14"- 15’’ and Above 15’’)
  –OTR (Up to 20’’, 21"- 25’’ and Above 25’’)
  –Heavy Trucks (Up to 20’’, 21"- 22.5" and Above 22.5’’)
  –Medium Trucks (Up to 16’’, 17"- 20’’ and Above 20’’)
  –Buses (Up to 16’’, 16"-20" and Above 20")

Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in Indonesia Tire Market.


Available Customizations:
With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information
• Detailed analysis and profiling of additional market players (up to five).