As per MRFR analysis, the Indonesia Automotive Tire Market Size was estimated at 4.1 (USD Billion) in 2023.The Indonesia Automotive Tire Market is expected to grow from 4.53(USD Billion) in 2024 to 13.6 (USD Billion) by 2035. The Indonesia Automotive Tire Market CAGR (growth rate) is expected to be around 10.505% during the forecast period (2025 - 2035).
Numerous important market factors are driving the notable evolution of the Indonesian automobile tire industry. The expansion of the automobile sector, which is driven by urbanization and growing disposable incomes, is one significant factor. There is a growing need for high-quality tires in Indonesia as more people own cars.
Additionally, the government's emphasis on improving infrastructure is increasing the number of vehicles on the road and, as a result, tire sales. Additionally, the rise of electric vehicles opens the door for specialty tires, which serve a market that is expanding in the nation.
The potential for manufacturers to engage in sustainable and environmentally friendly tire technology is one of the opportunities to be investigated in the Indonesian automobile tire market. Demand for tires comprised of renewable materials and those with reduced rolling resistance for improved fuel efficiency is rising as customers become more conscious of environmental issues.
Additionally, the rise in online sales platforms gives tire sellers a way to connect with more consumers, which makes it a compelling potential for people who are prepared to adjust to shifting retail environments.
Recent trends show a move toward more sophisticated tire technology, such as the adoption of sensor-equipped smart tires. These developments are in line with Indonesia's growing focus on vehicle performance and safety.
Due to the market's competitiveness, many businesses are also concentrating on growing their local presence, which encourages local manufacturing to more effectively meet demand. These elements will be crucial in determining the direction of Indonesia's automobile tire market as it develops further.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Growth of the Automotive Sector in Indonesia
The rapid expansion of the automotive sector in Indonesia is a significant driver for the Indonesia Automotive Tire Market. As the country sees an increase in vehicle ownership, the demand for automotive tires is rising correspondingly.
The Indonesia Automotive Industry Association (Gaikindo) reported that car sales in Indonesia reached approximately 1.05 million units in 2022, a growth rate of around 20% from previous years, indicating a strong market recovery following the pandemic.
This recovery can be attributed to favorable government policies that promote domestic automobile manufacturing and ownership. With the ongoing growth pattern, it is projected that vehicle ownership will continue to rise, boosting the demand for tires.
This sector's growth creates substantial opportunities for tire manufacturers to cater to a diverse range of vehicle types, from passenger cars to commercial vehicles, thereby further propelling the Indonesia Automotive Tire Market.
Increasing Infrastructure Development
Infrastructure development in Indonesia is another critical factor driving the Indonesia Automotive Tire Market. The government has been heavily investing in infrastructure projects, including roads, highways, and urban transport systems, as part of its National Medium-Term Development Plan.
According to recent government statistics, the Indonesian government allocated approximately USD 40 billion for infrastructure development in 2022. This investment not only enhances road quality but also facilitates the smooth movement of vehicles, leading to increased vehicle usage.
Consequently, with more vehicles on the road, the demand for reliable and high-quality automotive tires will concurrently rise, positively impacting the tire market.
Shift Towards Electric Vehicles
The shift towards electric vehicles (EVs) is profoundly influencing the Indonesia Automotive Tire Market. The Indonesian government has set ambitious targets for EV adoption, aiming for 20% of total automotive sales by 2030, supported by the launch of various incentives and tax breaks for EV buyers.
The Indonesian Institute of Sciences (LIPI) estimates that if EV adoption proceeds as planned, the number of electric cars on Indonesian roads could reach over 1 million by 2030.
This transition requires specially designed tires that cater to the unique needs of electric vehicles, such as lower rolling resistance and specialized tread designs. As manufacturers adapt to this new market demand, the growing number of EVs will significantly influence the tire market dynamics, driving growth for manufacturers and suppliers.
Automotive Tire Market Rim Size Insights
The Rim Size segment within the Indonesia Automotive Tire Market is a critical component reflecting the diverse requirements of vehicle types and consumer preferences in the region.
With a population surpassing 270 million, Indonesia's rapidly growing automotive sector necessitates a wide variety of tire sizes to accommodate the varying specifications of passenger cars, commercial vehicles, and two-wheelers.
Different rim sizes such as 13" to 15", 16" to 18", 19" to 21", and above 21" cater to the specific needs of these vehicles, highlighting the diverse applications across urban and rural areas. The 13" to 15" segment often serves compact cars and motorcycles, which are remarkably popular in Indonesia due to their fuel efficiency and maneuverability in congested urban centers.
Meanwhile, the 16" to 18" rim size category usually pertains to mid-range vehicles, offering a balanced performance suitable for both city driving and longer journeys throughout Indonesia's archipelagos. This segment also appeals to families looking for vehicles that combine comfort and utility.
The 19" to 21" rim size is typically favored by higher-end cars and SUVs, which are becoming increasingly popular among high-income segments in Indonesian society, reflecting a trend towards luxury and premium offerings in the automotive market.
Larger rim sizes are associated with enhanced performance, aesthetics, and, in some cases, better off-road capabilities, making them appealing for urban and adventurous consumers alike. Rim sizes greater than 21" generally signify an elite segment catering to custom vehicles and the luxury segment, which is exhibiting steady growth as Indonesia's affluence rises.
Overall, the Rim Size segment plays a vital role in understanding market dynamics, as it mirrors consumer choices and societal trends while simultaneously supporting the diversification of the Indonesia Automotive Tire Market.
Factors such as rising disposable incomes, changing lifestyles, and a booming automotive sector are significant growth drivers, contributing to the evolving landscape of tire demand across various rim sizes.
With the expected increase in vehicle ownership driven by economic growth, this segment will continue to witness significant developments, further influencing the Indonesia Automotive Tire Market statistics and segmentation, thereby presenting both challenges and opportunities in meeting customer expectations across different market niches.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Tire Market Season Insights
The Indonesia Automotive Tire Market is significantly influenced by the seasonal demand for various tire types, including Winter, Summer, and All-Season tires. Each of these categories serves specific driving conditions, making them essential for vehicle safety and performance in Indonesia's diverse climate.
Winter tires are crucial in regions experiencing cooler temperatures and rainfall, providing optimized grip and handling. Summer tires are designed for warmer conditions, offering enhanced performance and durability on dry and wet roads. All-Season tires cater to a broader range of weather conditions, appealing to consumers looking for convenience and year-round usability.
The growing popularity of personal vehicles in Indonesia and an increasing focus on road safety drive the demand for these specialized tires. Rising awareness around proper tire selection linked to seasonal changes is key in the consumer decision-making process.
Additionally, trends in urbanization and higher disposable income levels among the Indonesian population present significant opportunities for market growth as consumers seek better-quality tires for improved vehicle performance. Overall, understanding the dynamics of the seasonal tire segment is vital for businesses aiming to succeed in the Indonesia Automotive Tire Market as preferences evolve.
Automotive Tire Market Propulsion Type Insights
The Indonesia Automotive Tire Market exhibits a dynamic landscape when segmented by Propulsion Type, primarily encompassing Internal Combustion Engine (ICE) vehicles and Electric Vehicles (EV). The market is significantly influenced by the growing consumer preference for both performance and sustainability, which is increasingly shaping tire designs and technology.
ICE vehicles continue to dominate the market, primarily due to their established infrastructure and widespread use. However, the rising adoption of EVs is creating new opportunities, as they demand specially designed tires that cater to their unique driving characteristics and lower rolling resistance for enhanced energy efficiency.
Government initiatives promoting electric mobility are expected to further accelerate the growth of the EV segment, thereby impacting overall market dynamics. Additionally, advancements in tire technology tailored for specific propulsion types are anticipated to drive innovation, improve safety, and enhance performance.
This shift in focus towards both ICE and EV propulsion types underscores the need for diversified offerings within the Indonesia Automotive Tire Market, highlighting the importance of adapting to evolving consumer needs and market trends.
The growing market statistics point towards a robust growth trajectory, with a keen eye on sustainability and technological advancements shaping the future of the automotive tire sector in Indonesia.
Automotive Tire Market Vehicle Type Insights
The Vehicle Type segment of the Indonesia Automotive Tire Market plays a pivotal role in shaping the overall landscape of the industry. It comprises various vehicle categories, including Passenger Cars, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV).
Passenger cars, which constitute a significant portion of the overall market, benefit from Indonesia's increasing urbanization and rising income levels, leading to higher vehicle ownership rates. LCVs are also gaining traction, driven by the growth of the e-commerce sector and logistics industry, as these vehicles are essential for transportation and distribution services.
Meanwhile, HCVs are crucial for supporting Indonesia's infrastructure development and economic activities, given the country's focus on improving logistics and transportation networks.
The diverse needs of these vehicle types create a dynamic marketplace, prompting tire manufacturers to innovate and tailor their products to meet specific performance requirements, such as durability, fuel efficiency, and comfort.
With a growing demand for sustainable and efficient tire solutions in Indonesia, the Vehicle Type segment is forecasted to undergo significant transformations, driving overall market growth.
Automotive Tire Market Distribution Channel Insights
The Distribution Channel segment of the Indonesia Automotive Tire Market plays a crucial role in determining how tires reach consumers and automotive manufacturers. In Indonesia, the market is predominantly divided into two primary avenues: Original Equipment Manufacturer (OEM) and Aftermarket.
The OEM segment benefits from partnerships with vehicle manufacturers, ensuring a steady supply of tires that meet vehicle specifications, which is essential for performance and safety standards. Meanwhile, the Aftermarket segment has been gaining momentum, driven by the increasing number of vehicles on the road and the demand for replacements and upgrades.
The Aftermarket not only caters to individual consumers but also supports various automotive service providers, making it a vital component of the overall market dynamics. Additionally, the growing trend of vehicle customization and the expansion of e-commerce platforms are significant factors contributing to the market growth within this segment.
Challenges such as fluctuating raw material prices and environmental regulations may impact both segments, yet the increasing focus on sustainability is creating opportunities for innovative tire solutions. Thus, the Distribution Channel segment remains pivotal in shaping the overall landscape of the Indonesia Automotive Tire Market as it continues to evolve with market trends and consumer demands.
The Indonesia Automotive Tire Market has shown considerable growth and presents an intriguing landscape for competitive insights. The industry is characterized by a variety of domestic and international players who are vying for market share in a rapidly evolving environment.
Factors such as increasing vehicle ownership, a growing transportation sector, and rising consumer awareness regarding tire performance and safety are driving the demand for automotive tires in the region.
Moreover, the shift toward sustainability and eco-friendly products enhances the competitive dynamics as manufacturers innovate to provide high-quality products that meet environmental standards.
Competitive strategies such as mergers, collaborations, and local partnerships are prevalent as companies aim to strengthen their market position and address the diverse needs of Indonesian consumers.
In the Indonesia Automotive Tire Market, Dunlop stands out due to its strong brand equity and reputation for delivering high-performance products. The company has established a solid market presence, particularly in the premium tire segment, where it commands a loyal customer base.
Dunlop's strengths lie in its commitment to innovation, which includes the development of advanced tire technologies that enhance durability, ride comfort, and safety. The brand's long-standing history in the tire industry further reinforces its credibility among consumers.
Additionally, Dunlop's strategic marketing initiatives and distribution channels ensure that its products remain accessible and visible to a broad audience across Indonesia, making it a formidable competitor in the automotive tire landscape.
CEAT has also made significant strides in the Indonesia Automotive Tire Market, positioning itself as a key player through a diversified product portfolio that caters to both two-wheeler and four-wheeler segments. The company’s strengths are evident in its commitment to quality and affordability, allowing it to capture a sizable market share, particularly among budget-conscious consumers.
CEAT has established a robust distribution network that ensures its products are widely available in urban and rural areas alike. Furthermore, the company’s focus on research and development enables it to continuously enhance its tire offerings, distinguishing itself in terms of technology and performance.
Recent initiatives, including strategic partnerships and potential mergers, signify CEAT’s ambition to expand its footprint in the Indonesian market, reinforcing its position as a competitive force within the automotive tire sector.
Recent developments in the Indonesia Automotive Tire Market indicate a growing demand for high-quality tires driven by an increase in vehicle ownership and investments in infrastructure. Notably, companies such as Goodyear and Michelin have been expanding their product offerings, focusing on environmentally sustainable solutions.
CEAT has emphasized its plans to enhance distribution channels to ensure better availability of its products across the archipelago.
In terms of mergers and acquisitions, there have not been widely reported recent activities specifically involving Dunlop, Apollo Tyres, Nokian Tyres, Toyo Tire, Hankook Tire, Sumitomo Rubber Industries, Continental, Giti Tire, Bridgestone, Maxxis, Linglong Tire, or Yokohama Rubber in the Indonesian market.
However, in 2021, Bridgestone announced the expansion of its manufacturing facility in Indonesia, enhancing its production capabilities significantly.
As of 2023, the market valuation of various tire companies has been positively influenced by these expansions and innovations, with a notable presence of Indonesian manufacturers competing with international brands. The government's push for stricter safety regulations for tires is expected to further stimulate demand for premium tire products, reinforcing growth in the market.
Automotive Tire Market Rim Size Outlook
Automotive Tire Market Season Outlook
Automotive Tire Market Propulsion Type Outlook
Automotive Tire Market Vehicle Type Outlook
Automotive Tire Market Distribution Channel Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 4.1(USD Billion) |
| MARKET SIZE 2024 | 4.53(USD Billion) |
| MARKET SIZE 2035 | 13.6(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 10.505% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Dunlop, CEAT, Apollo Tyres, Nokian Tyres, Goodyear, Toyo Tire, Hankook Tire, Sumitomo Rubber Industries, Continental, Giti Tire, Bridgestone, Michelin, Maxxis, Linglong Tire, Yokohama Rubber |
| SEGMENTS COVERED | Rim Size, Season, Propulsion Type, Vehicle Type, Distribution Channel |
| KEY MARKET OPPORTUNITIES | Electric vehicle tire demand, Growing e-commerce distribution networks, Rising vehicle ownership rates, Eco-friendly tire production, Enhanced tire technology innovations |
| KEY MARKET DYNAMICS | growing vehicle population, increasing consumer spending, expanding e-commerce logistics, rising demand for eco-friendly tires, technological advancements in tire manufacturing |
| COUNTRIES COVERED | Indonesia |
Frequently Asked Questions (FAQ) :
The Indonesia Automotive Tire Market is expected to be valued at 4.53 billion USD in 2024.
By 2035, the market size is projected to reach approximately 13.6 billion USD.
The expected compound annual growth rate (CAGR) for the market from 2025 to 2035 is 10.505 percent.
The 16"-18" rim size segment has the highest market value, estimated at 1.55 billion USD in 2024.
The 19"-21" rim size segment is expected to reach about 3.06 billion USD in 2035.
The market value for the 13"-15" rim size segment is estimated at 1.36 billion USD in 2024.
Major players include Dunlop, CEAT, Apollo Tyres, Nokian Tyres, and Goodyear among others.
The >21" rim size segment is projected to be valued at 1.75 billion USD in 2035.
Key growth drivers include increasing vehicle production and a rising demand for fuel-efficient tires.
The current global scenario influences supply chains and raw material costs, impacting market dynamics.
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