Updated Oct 8, 2022 12:50

Passenger Car Tyre Market in Indonesia

Market Overview
The Indonesian passenger car tyre market declined modestly to $ in , falling by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, the total consumption indicated moderate growth from 2007 to : its value increased at an average annual rate of +% over the last fourteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against 2019 indices. Over the period under review, the market hit record highs at $ in 2014; however, from 2015 to , consumption failed to regain momentum.

In value terms, passenger car tyre production shrank modestly to $ in estimated in export price. Over the period under review, the total production indicated pronounced growth from 2007 to : its value increased at an average annual rate of +% over the last fourteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production increased by +% against 2019 indices. The most prominent rate of growth was recorded in 2010 when the production volume increased by % against the previous year. Over the period under review, production hit record highs at $ in 2014; however, from 2015 to , production failed to regain momentum.


Consumption
In , approx. units of tyres for motor cars were consumed in Indonesia; increasing by % compared with . The total consumption volume increased at an average annual rate of +% from 2007 to ; the trend pattern remained relatively stable, with somewhat noticeable fluctuations in certain years. As a result, consumption attained the peak volume of units. From 2018 to , the growth of the consumption failed to regain momentum.

The value of the passenger car tyre market in Indonesia amounted to $ in , picking up by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a moderate increase from 2007 to : its value increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against indices. Passenger car tyre consumption peaked at $ in 2014; however, from 2015 to , consumption stood at a somewhat lower figure.


Market Forecast
Driven by increasing demand for passenger car tyre in Indonesia, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to units by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of passenger car tyre in Indonesia were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for passenger car tyre. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Indonesia remains a net exporter of passenger car tyre; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of units, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.