Indonesian Tyre Market Potential
Indonesia has over 260 million of populations (40% of ASEAN Populations) and the characterized by having a rapidly expanding middle class. Those factors create a powerful car consumer force. 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. Sales of passenger cars and motorcycle have been dominating the markets which deliver the good impact for the growth of tyre market in Indonesia.
According to BPS (Statistics Indonesia) Data that the number of land vehicles registered until 2017 had 138.556.559 units of vehicles including 15.493,068 unit of cars, 2.509,258 unit of buses, 7.523.550 unit of commercial vehicles (truck, box, special vehicles) and 113.030.793 units of motorbikes. Based on the data, Indonesia has a large volume of vehicles. This will definitely drive the high demand for tires in the after-sales market.
Indonesian rubber production is expected to pose strong growth of CAGR 7% in 2020. The expansion will result in the rearrangement of the world’s TOP 5 rubber producers with Indonesia becoming the 3rd largest rubber producer globally, bypassing Japan by 2020.