Over the past decade, Indonesia has become one of the largest producers and consumers of tires in Southeast Asia. The country is home to some of the leading brands in the global tire industry, and the installed capacity and production of the Indonesian tire market grew significantly in the first five years of the past decade, while the second five years were relatively quiet.
Indonesian tire producers have a huge advantage in terms of raw material supply. The country is the second largest producer of natural rubber, producing 3.12 million tons of natural rubber in 2021, According to the analysis. The tire industry consumes more than 250,000 tons of natural rubber annually, accounting for nearly 40% of domestic natural rubber consumption. The availability and pricing of natural rubber is one of the major advantages of Indonesia's tire manufacturing industry.
According to the analysis, Indonesia's domestic tire production grows 38% to 193 million tires in 2021. Of these, approximately 79.5 million are automotive tires. Of the units produced, 30% of the total production is absorbed by the domestic market and the remaining 70% is exported to foreign markets. The market for passenger car and truck tires in Indonesia grows from 24.1 million tires in 2020 to 28.9 million tires in 2021, an increase of 19.9%. The OEM (original equipment manufacturer) assembly and replacement markets grew by 47.1% and 8%, respectively.
In addition to the domestic market, Indonesian tire producers have a major share of many export markets. The country's low production costs have given domestic tire manufacturers a significant competitive advantage in the export market. In addition, Indonesian tires for export have reached world class quality standards in the Middle East, America and even Europe. This is because the type of Indonesian natural rubber used in tire production is SIR 20 TSR (technically graded rubber) rubber, which is made by extracting the sap from Brazilian rubber trees, then solidifying, refining and heating the sap, SIR 20 TSR rubber is used as a raw material for making tires and engine hoses without any chemical additives. Meanwhile, the types of rubber produced in other countries, namely Thailand and Vietnam, must first undergo a blending process with a variety of chemicals to achieve the quality of Indonesian natural rubber.
The impact of COVID-19 has led to a significant contraction in Indonesia's auto production in 2020, with only 691,000 units in 2020, down 46.28% y-o-y, According to the analysis.Vietnam's auto production will grow at a CAGR of 2.27% from 2018 to 2022.In 2021 and 2022, as the impact of COVID-19 gradually dissipates, the economic recovery in domestic and global markets, Indonesia's automotive production also rises significantly, with annual production of about 1.47 million units in 2022, up 31.03% YoY. The rising car production in Indonesia has driven up the demand for car tires.
According to the analyst, the market size of automotive industry will reach US$ 1.79 million in 2032 and the CAGR in 2023 to 2032 is 2%.
Topics Covered
- Indonesia Automotive Tire Industry Overview
- Economic Environment and Policy Environment of the Automotive Tire Industry in Indonesia
- What is the impact of COVID-19 on the Indonesian automotive tire industry?
- Indonesia Automotive Tire Industry Market Size 2018-2022
- Analysis of major Indonesian auto tire industry manufacturers
- Key Drivers and Market Opportunities in Indonesia's Automotive Tire Industry
- What are the key drivers, challenges and opportunities for Indonesia's automotive tire industry during the forecast period of 2023-2032?
- Which companies are the key players in the Indonesian Automotive Tire Industry market and what are their competitive advantages?
- What is the expected revenue of Indonesia Automotive Tire Industry market during the forecast period 2023-2032?
- What are the strategies adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Indonesia Automotive Tire Industry market is expected to dominate the market by 2032?
- What are the main negative factors facing the automotive tire industry in Indonesia?
Companies Mentioned
- PT Gajah Tunggal Tbk
- PT Bridgestone
- PT Michelin
- PT Multistrada Arah Sarana
- PT Hankook Tire
- PT Sumi Rubber
- PT Elang Perdana
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 60 |
| Published | May 2023 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value in 2023 | 1499.4 Thousand Units |
| Forecasted Market Value by 2032 | 1791.9 Thousand Units |
| Compound Annual Growth Rate | 2.0% |
| Regions Covered | Indonesia |
| No. of Companies Mentioned | 7 |
