Updated Jan 18, 2023 15:03

Market for Truck and Bus Tyre in Indonesia

Market Overview
In , the Indonesian truck and bus tyre market increased by % to $, rising for the second consecutive year after three years of decline. Overall, consumption showed a relatively flat trend pattern. As a result, consumption reached the peak level of $. From 2018 to , the growth of the market failed to regain momentum.

In value terms, truck and bus tyre production reduced slightly to $ in estimated in export price. Overall, production showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 with an increase of % against the previous year. Truck and bus tyre production peaked at $ in 2014; however, from 2015 to , production failed to regain momentum.


Consumption
In , consumption of tyres for buses or lorries increased by % to units, rising for the second consecutive year after three years of decline. Overall, consumption, however, continues to indicate a relatively flat trend pattern. As a result, consumption attained the peak volume of units. From 2018 to , the growth of the consumption remained at a somewhat lower figure.

The size of the truck and bus tyre market in Indonesia totaled $ in , standing approx. at 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, consumption showed a relatively flat trend pattern. As a result, consumption reached the peak level of $. From 2018 to , the growth of the market failed to regain momentum.


Market Forecast
Driven by rising demand for truck and bus tyre in Indonesia, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, 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
Driven by a growing demand, the share of imports in total supply in Indonesia increased significantly over the last fifteen years (from % to %). Over the period under review, the share of imports in terms of total truck and bus tyre consumption in Indonesia was relatively small in physical terms, fluctuating under an % figure. In value terms the share of imports also stood at a low figure, which means that the Indonesia truck and bus tyre market is largely supplied by domestic manufacturers. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Indonesia remains a net importer of truck and bus tyre; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of units, which was equal to $.