Indonesia Automotive Tires Market

Indonesia Automotive Tires Market Overview

Automotive tires are the circular and ring-like part of an automotive that maintains the contact between vehicle and the ground by providing the traction. The tires are fitted on the rims of an automotive and are filled with compressed air. The other functions of tires are to support the vehicle’s weight, transmit the torque, traction, and braking forces to the surface of the road.

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Major Indonesia Automotive Tires Market Drivers

The increase in the production of vehicles owing to the rising demand and growing volume of export of the automotive are the major factors that are bolstering the growth of the market in Indonesia. The government of Indonesia targeted to export 400,000 units of cars in 2019. This number is 15.6 percent higher as compared to 2018, with a total of 346,000 units. Moreover, the increasing production and export of the automotive tires to meet the growing demand worldwide is also a key factor that is fuelling the growth of the market. For example, around 69 million motorcycle tires were manufactured in 2018 in the factories in archipelago and about 30% of the motorcycle tires and 70% of the car tires are exported to more than 70 countries in every continent.

The growing investments by various companies to increase the production of the tires in the country is also propelling the market growth. Hankook Tire & Technology Co., Ltd invested USD 450 million to expand its production capacity to 20 million tires per year. In addition, growing government support for rising the production of electric vehicles in the country is a factor that is augmenting the growth of the automotive tires market across the country during the forecast period. The government provided fiscal incentives in the form of mini tax holiday or tax holiday for the main component industries like the electric motor industry and battery industry to assist the production of low carbon emission vehicles in the country. The government of Indonesia made special arrangements for the Import Duty and other taxation that includes regional taxes to fasten the development of the electric vehicles. Moreover, the ample presence of raw material like natural rubber is attracting several international players to enter the Indonesian market. This factor is further driving the market growth of automotive tires.

Restraint in the Indonesia Automotive Tires Market

The factors that are responsible for hindering the growth of the Indonesia automotive tires market include the decrease in the sales of cars in the country owing to the coronavirus pandemic worldwide which is leading to the decrease in the export and production of the automotive tires in the country.

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Type – Segment Analysis

Based on the type, the radial segment is expected to grow at a higher CAGR during the forecast period. The factors that are driving the growth of the market include the increasing penetration of tires owing to their several beneficial features like reduced life-cycle cost and improved puncture resistance as compared to the bias tires.

Vehicle Type – Segment Analysis

On the basis of vehicle type, the passenger car segment is expected to increase at a higher CAGR during the forecast period. The key factors which are proliferating the growth of the market in this segment are the rise in the sales of passenger cars in the country due to the growing urban population and low-interest rates for the loans of vehicles. In addition, the growing shift of people towards electric vehicles to decrease the emissions in the environment is another factor which is further driving the market growth.

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Key Developments: 

• • In 2020, Gajah Tunggal Tbk bought 80,020 square meters land in Tangerang, Banten from PT Softex Indonesia for the expansion of the Truck Bus Radial factory worth USD 16.6 million.
  • In 2020, Bridgestone Corporation announced the plan to open ten new authorized outlets all through Indonesia by the end of 2020. These ten stores are present in multiple locations that include West Java, South Sumatra, Tangerang, and Central Java, among others. 

Segments covered in the Report:

The Indonesia automotive tires market has been segmented on the basis of type, season, vehicle type, rim size, and distribution channel. Based on type, the market is segmented into bias and radial. Based on the season, the market is segmented into summer, winter, and all seasons. Based on vehicle type, the market is segmented into the passenger car, LCV, buses, and trucks. Based on rim size, the market is segmented into less than 15 inch, 15-20 inch, and more than 20 inch. Based on the distribution channel, the market is segmented into OEM and aftermarket. 

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Report Coverage	Details
Market Revenues (2022)	USD Million
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Type, By Season, By Vehicle Type, By Rim Size, and By Distribution Channel
Regional Coverage	Indonesia
Companies Profiled	Profiles of Top 10 Major Companies Operating in “Indonesia Automotive Tires Market”
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Indonesia Automotive Tires Market by Type

• • Bias
  • Radial

Indonesia Automotive Tires Market by Season

• • Summer
  • Winter
  • All Seasons

Indonesia Automotive Tires Market by Vehicle Type

• • Passenger Car
  • LCV
  • Buses
  • Trucks

Indonesia Automotive Tires Market by Rim Size

• • Less than 15 Inch
  • 15-20 Inch
  • More than 20 Inch

Indonesia Automotive Tires Market by Distribution Channel

• • OEM
  • Aftermarket