Indonesian tyre market to grow 17.98% CAGR by 2018
The two-wheeler tyre market in Indonesia is set to grow at a compound annual growth rate (CAGR) of 17.98 per cent 2013-2018. That’s the view of a new report published by Research and Markets in January. According to the report’s writers one of the key factors contributing to this market growth is the strong demand for two-wheelers. The two-wheeler tyre market in Indonesia has also been witnessing growing demand for replacement tyres, which is likely to be based on the growing size of the domestic two-wheel vehicle parc.
Commenting on the report, an analyst from the team said: One of the main trends witnessed in the two-wheeler tyre market in Indonesia is the growing demand for replacement tyres in the country. The country has been witnessing high adoption of two-wheelers over the last decade, which led to high demand for OEM tyres. However, as the penetration rate of two-wheelers in the country has reached over 90 per cent, the demand for OEM tyres is getting stagnating. Moreover, the drastic surge in the number of two-wheelers in the market is expected to drive the demand for replacement tires over the next few years.
The reports describes PT Gajah Tunggal Tbk, PT Industri Karet Deli, PT Sumi Rubber Indonesia, and PT Suryaraya Rubberindo Industries as “key vendors”. Other vendors mentioned in the report include PT Bategng Pratama, PT Elang Perdana Tyre Industry, PT Hung A Indonesia, PT Multistrada Arah Sarana Tbk, PT Surabaya Kencana Tyre Industry, and PT United King-land Company Ltd.