Updated Sep 27, 2022 12:54

Market for Motorcycle or Bicycle Tyre in Indonesia

Market Overview
In , the Indonesian motorcycle or bicycle tyre market decreased by -% to $, falling for the second consecutive year after three years of growth. Over the period under review, consumption recorded a slight setback. As a result, consumption reached the peak level of $. From 2015 to , the growth of the market remained at a lower figure.

In value terms, motorcycle or bicycle tyre production stood at $ in estimated in export price. Overall, the total production indicated noticeable 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 decreased by -% against 2019 indices. The growth pace was the most rapid in 2008 when the production volume increased by % against the previous year. Over the period under review, production attained the peak level at $ in 2019; however, from to , production failed to regain momentum.


Consumption
In , consumption of tyres for motorcycles or bicycles decreased by -% to units, falling for the third consecutive year after three years of growth. Overall, consumption showed a perceptible decrease. Over the period under review, consumption hit record highs at units in 2019; however, from to , consumption remained at a lower figure.

The revenue of the motorcycle or bicycle tyre market in Indonesia stood at $ in , surging 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, consumption showed a mild contraction. As a result, consumption reached the peak level of $. From 2015 to , the growth of the market remained at a lower figure.


Market Forecast
Depressed by shrinking demand for motorcycle or bicycle tyre in Indonesia, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract 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
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 motorcycle or bicycle 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.