BURNABY, Canada (Nov. 14, 2014) — Indonesia's tire market is forecast to grow at a compound annual growth rate (CAGR) of about 10 percent through 2019, according to a recently released report.
Global market research and consulting firm TechSci Research said in the report — “Indonesia Tire Market Forecast & Opportunities, 2019” — that factors driving market growth include increasing automobile sales in the domestic market, rising exports, increasing automobile fleet size and an abundance of raw material in the country. In 2013, majority tire sales were accounted for by the two wheeler segment, according to TechSci. Through the forecast period, the segment is expected to continue its dominance with two wheeler tire sales exceeding other tire sales in volume terms.
The company said the OTR tire segment occupied “a very miniscule market share” in the Indonesian tire market in 2013, while the country's passenger car and commercial vehicle tire segment cumulatively accounted for about 28 percent share in volume terms in 2013.
Java is emerging as the tire manufacturing hub in the country, TechSci said, as major auto OEMs have set up their units in this region. Also, more than 50 percent of the population lives in this province, “which makes it a melting pot for tire sales in Indonesia,” according to the firm's report.
It said 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 Corp., Goodyear and Group Michelin.
“Low cost green cars (LCGC), Low Emission Carbon (LEC) vehicles and environment friendly vehicles are expected to grow at a considerable rate in the Indonesian market, which is expected to buoy automobile fleet size and hence tire market in Indonesia,” said Jaspreet Singh, research consultant with TechSci.
“In addition, the government of Indonesia is putting (its) best foot forward in encouraging domestic as well as foreign companies to set up their tire production units in the country in order to minimize tire imports.”
The Indonesia tire market forecast has evaluated the future growth potential of Indonesia tire market and provides statistics and information on market structure, exports and future growth of the market. TechSci said the report “is intended to provide