Why Indonesia is a must-do market for tyre & rubber business now?
The global tyre market is primarily driven by the significant growth in the automotive sector. According to IMARC – the market analysts, 2019 is worth 3.2 billion units and will experience an increase of about 3.9 billion units by 2024. The market is expected to reach a volume of 4.0 Billion Units by 2025, growing at a CAGR of 3.7%.
Tire industry is one of the leading sectors in sustaining the national economy. The tire industry can absorb more than 250,000 tons of natural rubber per year or 42 percent of national natural rubber consumption. Some national brands are already able to compete in the international market and reach the world-level class of tire manufacturers or global tire manufacturers. Currently, there are 17 manufacturers recorded with a total installed capacity of 200 million tires per year.
The Central Statistics Agency (BPS) announced that Indonesian economic growth in the third quarter of 2022 reached 5.72% (yoy). Indonesia’s automotive industry has remained one of the manufacturing sub-sectors contributing positively to the national industry.
As technology evolves and the new era of electric vehicles, several tire manufacturers have started developing tires for electric cars. The tire industry is profitable with the massive development of electric vehicles. The electric vehicles are not only environmentally friendly products or a trend, but it can be said as a new habit in the future.