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Report Description

Report Description

Forecast Period

2026-2030

Market Size (2024)

USD 3.85 Billion

CAGR (2025-2030)

7.11%

Fastest Growing Segment

Two-Wheeler

Largest Market

Java

Market Size (2030)

USD 5.82 Billion

Market Overview

The Indonesia Tire market was valued at USD 3.85 Billion in 2024 and is expected to reach USD 5.82 Billion by 2030 with a CAGR of 7.11% during the forecast period. The Indonesian tire market is experiencing strong growth, driven by increasing vehicle ownership, especially motorcycles. Motorcycles are the primary mode of transportation in urban areas due to their affordability and ability to navigate traffic. As motorcycle sales rise, so does the demand for replacement tires. The growing middle class, better access to financing, and government initiatives to promote electric vehicles (EVs) are further driving tire demand in the passenger vehicle sector. EVs require specialized tires for optimal performance, creating a new market opportunity. For instance, Indonesia is targeting 5.2% economic growth in 2024, driven by domestic consumption and investment, despite challenges from declining commodity prices and economic conditions in China. Domestic consumption, contributing 57% to GDP in 2023, remains a key driver, supported by an 8% salary increase for 3.7 million civil servants and higher election-related spending. The motorcycle industry, the world's third-largest, continued its post-pandemic recovery, with sales reaching 6.5 million units (+2.2%), marking the third consecutive annual increase and a return to pre-COVID levels. The electric vehicle segment surged 62.9%, surpassing 100,000 sales for the first time, fueled by a $455 million government subsidy aimed at supporting 800,000 new electric motorcycles and converting 200,000 combustion models. Chinese EV leader Yadea expanded its footprint with a major investment in Indonesia, inaugurating a 28,000-square-meter production facility in Bekasi, West Java, with an annual capacity of 300,000 units.

Indonesian consumers are increasingly opting for higher-quality, fuel-efficient, and durable tires. This shift is fueled by a rising focus on long-term cost savings and vehicle safety. Tire manufacturers are responding by developing low rolling resistance and eco-friendly tires. E-commerce platforms are also reshaping the market, allowing consumers to purchase tires conveniently online, driving sales and brand visibility.

However, challenges persist, including the widespread presence of counterfeit and low-quality tires that pose safety risks. The volatility of raw material prices, such as rubber, also impacts production costs. Additionally, road conditions in rural areas cause quicker tire wear, prompting manufacturers to design more durable products. Despite these challenges, the Indonesian tire market presents significant opportunities for innovation and growth, especially in the two-wheeler and passenger vehicle segments.

Market Drivers:

Rising Motorcycle Ownership

Motorcycles are the most popular mode of transportation in Indonesia, particularly in dense urban areas and rural communities. With traffic congestion in cities like Jakarta and Surabaya, motorcycles offer a faster, more affordable alternative for daily commuting. The growing middle class and increasing disposable income have enabled more Indonesians to afford motorcycles. This has directly driven the demand for motorcycle tires, including replacement tires, because of the high usage and the frequent need for tire maintenance.

Increase in Passenger Vehicle Sales

With an expanding economy and rising disposable incomes, the demand for passenger vehicles, particularly cars, is also increasing in Indonesia. Financing options, such as installment payments and low-interest loans, have made vehicles more accessible to the middle class. As more families and individuals purchase cars, the need for tires both original equipment and replacement—has surged. The demand for tires that offer better fuel efficiency, safety, and performance has also increased, contributing to the growth of the tire market for passenger vehicles.

Urbanization and Infrastructure Development

As urbanization in Indonesia continues to accelerate, more people are moving to cities and purchasing vehicles. At the same time, ongoing government investments in infrastructure—such as road construction, public transportation projects, and the expansion of highways are making car ownership more practical. Urbanization increases vehicle numbers, leading to a higher demand for tires, both for new vehicles and replacements. As road conditions improve, tire longevity and performance become more important for urban consumers, further driving the tire market. For instance, Indonesia has designated a state budget of 25.5 billion USD for infrastructure development in 2025, which encompasses the ongoing construction of infrastructure in the new capital city of Nusantara, located on Kalimantan Island.

Indonesia Tire Market

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Key Market Challenges

Raw Material Price Volatility

The tire industry is heavily dependent on raw materials like rubber, oil, and synthetic polymers, all of which are subject to price fluctuations. Global market volatility in these materials can lead to higher production costs for manufacturers, which may, in turn, raise tire prices for consumers. In Indonesia, where price sensitivity is high, manufacturers may find it challenging to balance the cost of production with the need to remain competitive while maintaining profitability.

Competition from Imported Tires

The Indonesian tire market faces significant competition from imported tires, particularly from neighboring countries in Asia. These imported tires, often at lower price points, can undermine local manufacturers' market share. While local brands may focus on product quality and innovation, they face challenges in competing with cheaper imported options, which can attract price-sensitive consumers. This competitive pressure makes it difficult for domestic manufacturers to capture and maintain market share. 

Supply Chain and Logistics Disruptions

Indonesia’s archipelagic geography poses logistical challenges for tire distribution, especially to remote regions. Inconsistent infrastructure development, port congestion, and rising transportation costs impact timely deliveries and inventory management, affecting both manufacturers and retailers. The country’s vast and varied landscape requires a well-coordinated supply chain, yet inefficiencies in road networks and inter-island shipping create delays and added expenses. Dependence on imported raw materials further complicates logistics, as international shipping disruptions, customs delays, and fluctuating fuel prices add uncertainty. Small and medium-sized tire retailers often struggle with stock shortages due to distribution inefficiencies, impacting sales and customer satisfaction. The need for an optimized warehousing system and advanced tracking technologies is growing, but implementation costs remain a barrier for many businesses. Digitalization in logistics, such as real-time tracking and automated inventory systems, is gradually being adopted to improve efficiency. Investments in infrastructure projects by the government may help address some of these challenges, but short-term supply chain issues persist. Companies that can develop robust distribution networks and leverage data-driven logistics solutions will have a competitive advantage in ensuring a consistent and reliable supply.

Key Market Trends

Increasing Use of Radial Tires

Radial tires are becoming more popular in Indonesia, particularly for passenger vehicles, due to their superior performance, longer lifespan, and better fuel efficiency compared to bias tires. As consumers and OEMs (original equipment manufacturers) seek tires that offer better stability and handling, radial tires have gained a larger market share. Radial tires’ lower rolling resistance and higher durability make them an attractive option for both new vehicle purchases and replacement tires in the Indonesian market. For instance, in March 2024, Sailun Group revealed its intention to establish a manufacturing facility in Indonesia, which will have the capacity to produce 3 million semi-steel radial tires, 600,000 all-steel radial tires, and 37,000 tonnes of off-the-road (OTR) tires each year. The company plans to allocate an investment of USD 251.44 million for this initiative, with USD 204.29 million designated for the construction of the plant located in Demak, Central Java.

Eco-Friendly and Sustainable Tire Solutions

As environmental awareness grows, both consumers and manufacturers are prioritizing sustainability in tire production. Tire companies are exploring ways to reduce the environmental impact of tire production and disposal, with an emphasis on using renewable materials, such as bio-based rubbers and eco-friendly manufacturing processes. Additionally, tires that offer better fuel efficiency and lower carbon emissions are becoming more popular, as consumers are increasingly aware of the environmental footprint of their vehicles. 

Growth in the Two-Wheeler Segment

The two-wheeler tire segment is witnessing rapid expansion, driven by increasing motorcycle sales, ride-hailing services, and the rise of e-commerce delivery platforms. The demand for durable, high-performance tires is growing as motorcycles continue to dominate Indonesia’s urban and rural transportation landscape. Young consumers and low-income households prefer motorcycles due to their affordability and fuel efficiency. The increasing adoption of electric motorcycles adds a new dimension to the two-wheeler market, requiring specialized tire solutions. Advances in tread design and puncture-resistant technologies are helping manufacturers meet evolving consumer demands.

Segmental Insights

Tire Construction Type Insights

The Indonesia tire market in 2024 is witnessing a strong dominance of radial tires over bias tires. The increasing preference for radial construction stems from its superior durability, fuel efficiency, and ride comfort. Radial tires are widely adopted in passenger cars and commercial vehicles due to their ability to provide better traction, lower rolling resistance, and extended tread life. With rising vehicle ownership, infrastructure development, and increased logistics activity, demand for radial tires continues to surge, particularly in urban and highway applications. The shift toward radial tires is also influenced by consumer awareness regarding cost savings in the long run, as they require less frequent replacement compared to bias tires.

In contrast, bias tires maintain a presence in specific applications, particularly in heavy-duty and off-road segments. However, their dominance is limited due to higher heat buildup, reduced efficiency, and shorter lifespan. These tires are still utilized in sectors where extreme load-bearing capacity and rugged durability are prioritized, such as construction and agricultural vehicles. Despite this, the ongoing modernization of transportation and industrial fleets is accelerating the transition toward radial alternatives.

The dominance of radial tires is further reinforced by government policies supporting infrastructure growth, leading to increased highway usage and long-distance transportation needs. The expansion of ride-hailing services and logistics networks also contributes to a stronger demand for radial tires, which offer better performance in high-mileage scenarios. As consumer preferences evolve and fleet operators focus on operational efficiency, radial tires continue to gain a larger share of the Indonesian market in 2024.

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Region Insights

In 2024, Java emerged as the dominant region for tire sales in Indonesia. As the economic and industrial hub of the country, Java plays a crucial role in the automotive and tire markets. This island is home to the majority of Indonesia’s manufacturing facilities, including those of automotive producers, and accounts for a significant portion of the nation's automotive demand. Jakarta, the capital, is a major center for business and transportation, driving a large demand for both passenger and commercial vehicle tires. The high density of vehicles on the road in this region, combined with its economic activity, leads to the frequent replacement of tires and increased demand for new models.

The urbanization and infrastructure development in Java has led to more vehicles being used across various sectors, including private transportation, logistics, and public transport. The rise in e-commerce and the expanding retail sector further boosts the need for transportation, and with it, the demand for durable and efficient tires. This makes Java not just a leader in terms of volume, but also a critical market for innovations in tire technology, with an emphasis on tires that offer better fuel efficiency, longer life spans, and greater road safety, particularly for vehicles navigating the region's densely trafficked streets.

The region’s transportation system, comprising both roadways and commercial vehicles, has a significant impact on tire consumption patterns. In Java, consumers typically demand a variety of tire types suited for different vehicle categories, including cars, trucks, and buses. The growth in logistics and distribution networks, especially in cities like Surabaya, Bandung, and Yogyakarta, also contributes to the rise in tire sales, as these sectors depend on reliable transportation networks for goods movement. Additionally, the continued expansion of mass transit systems and the push for electric vehicles (EVs) further shape the tire market on the island, as tire manufacturers adapt to new trends and technological advancements.

Recent Developments

  • In November 2024, Zhongce Rubber Group Co., Ltd. (ZC Rubber) announced that its newly established Indonesian subsidiary, PT. Matahari Tire Indonesia (MTI), has successfully manufactured its inaugural all-steel radial tire. Although the facility is currently in the ramp-up stage, the production of this initial tire represents a noteworthy advancement in addressing the increasing demand for high-quality tires in both domestic and global markets.
  • In August 2024, PT Gajah Tunggal Tbk launched its Giti passenger car tire brand in Indonesia, offering a premium choice for industry experts focused on advanced technology. The GitiSportS2, engineered in Germany, is an ultra-high-performance tire designed to enhance luxury vehicles with outstanding control, excellent wet traction, and superior braking performance.
  • In 2024, Chinese electric vehicle manufacturers BYD and Neta Auto unveiled their latest models and revealed new investment initiatives during an auto exhibition in Jakarta. Additionally, Indonesian property developer Suryacipta Swadaya disclosed that BYD is set to establish a factory valued at USD 1 billion on a 1.08 square kilometer site in West Java province. The construction is scheduled to begin in August 2024, with operations expected to start in January 2026.
  • In 2025, Michelin has announced plans to fully acquire Indonesian tire manufacturer Multistrada, a move that strengthens its foothold in the Southeast Asian market. This acquisition will enable Michelin to expand its production capabilities and tap into Indonesia’s growing automotive sector. By integrating Multistrada’s existing facilities and expertise, Michelin aims to enhance its market share and operational efficiency in the region. The strategic acquisition underscores Michelin’s commitment to accelerating growth in emerging markets and leveraging local production to meet rising demand for quality tires in Indonesia and beyond.

Key Market Players

  • PT Gajah Tunggal Tbk
  • PT Bridgestone Tire Indonesia
  • PT Sumi Rubber Indonesia
  • Hankook Tire & Technology
  • Pirelli Tyre S.p.A
  • Goodyear Tire and Rubber Company
  • Continental Tyres Indonesia
  • YHI INDONESIA, PT.
  • Toyo Tires Indonesia
  • PT MICHELIN INDONESIA

By Vehicle Type

By Demand Category

By Tire Construction Type

 

 

By Region

  • Passenger Vehicle
  • Commercial Vehicle
  • Two-Wheeler
  • OEM
  • Replacement
  • Radial
  • Bias
  • Java
  • Sumatra
  • Sulawesi
  • Kalimantan
  • Rest of Indonesia

 

Report Scope:

In this report, the Indonesia Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Indonesia Tire Market, By Vehicle Type:

o   Passenger Vehicle

o   Commercial Vehicle

o   Two-Wheeler

·         Indonesia Tire Market, By Demand Category:

o   OEM

o   Replacement

·         Indonesia Tire Market, By Tire Construction Type:

o   Radial

o   Bias

·         Indonesia Tire Market, By Region:

o   Java

o   Sumatra

o   Sulawesi

o   Kalimantan

o   Rest of Indonesia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Indonesia Tire Market.

Available Customizations:

Indonesia Tire Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Indonesia Tire Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

Table of content

1.    Introduction

1.1.  Market Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.     Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.     Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on Indonesia Tire Market

5.     Voice of Customer

5.1.  Factors Influencing Purchase Decision

5.2.  Sources of Information

6.    Indonesia Tire Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value & Volume

6.2.  Market Share & Forecast

6.2.1.     By Vehicle Type Tire Market Share Analysis (Passenger Vehicle, Commercial Vehicle, Two-Wheeler)

6.2.2.    By Demand Category Market Share Analysis (OEM, Replacement)

6.2.3.    By Tire Construction Type Market Share Analysis (Radial, Bias)

6.2.4.    By Region Market Share Analysis

6.2.4.1. Java Market Share Analysis

6.2.4.2. Sumatra Market Share Analysis

6.2.4.3. Sulawesi Market Share Analysis

6.2.4.4. Kalimantan Market Share Analysis

6.2.4.5.Rest of Indonesia Market Share Analysis

6.2.5.    By Top 5 Companies Market Share Analysis, Others (2024)

6.3.  Indonesia Tire Market Mapping & Opportunity Assessment

6.3.1.    By Vehicle Type Tire Market Mapping & Opportunity Assessment

6.3.2.    By Demand Category Market Mapping & Opportunity Assessment

6.3.3.    By Tire Construction Type Market Mapping & Opportunity Assessment

6.3.4.    By Region Market Mapping & Opportunity Assessment

7.    Java Tire Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value & Volume

7.2.  Market Share & Forecast

7.2.1.     By Vehicle Type Market Share Analysis

7.2.2.     By Demand Category Market Share Analysis

7.2.3.     By Tire Construction Type Market Share Analysis

8.    Sumatra Tire Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value & Volume

8.2.  Market Share & Forecast

8.2.1.     By Vehicle Type Market Share Analysis

8.2.2.     By Demand Category Market Share Analysis

8.2.3.     By Tire Construction Type Market Share Analysis

9.    Sulawesi Tire Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Value & Volume

9.2.  Market Share & Forecast

9.2.1.     By Vehicle Type Market Share Analysis

9.2.2.     By Demand Category Market Share Analysis

9.2.3.     By Tire Construction Type Market Share Analysis

10.  Kalimantan Tire Market Outlook

10.1.              Market Size & Forecast

10.1.1.  By Value & Volume

10.2.              Market Share & Forecast

10.2.1.  By Vehicle Type Market Share Analysis

10.2.2.  By Demand Category Market Share Analysis

10.2.3.  By Tire Construction Type Market Share Analysis

11.  Market Dynamics

11.1.  Drivers

11.2.  Challenges

12.  Market Trends & Developments

13.  Competitive Landscape

13.1.  Company Profiles

13.1.1.  PT Gajah Tunggal Tbk

13.1.1.1.      Company Details

13.1.1.2.      Products

13.1.1.3.      Financials (As Per Availability)

13.1.1.4.      Key Market Focus & Geographical Presence

13.1.1.5.      Recent Developments

13.1.1.6.      Key Management Personnel

13.1.2.  PT Bridgestone Tire Indonesia

13.1.2.1.      Company Details

13.1.2.2.      Products

13.1.2.3.      Financials (As Per Availability)

13.1.2.4.      Key Market Focus & Geographical Presence

13.1.2.5.      Recent Developments

13.1.2.6.      Key Management Personnel

13.1.3.  PT Sumi Rubber Indonesia

13.1.3.1.      Company Details

13.1.3.2.      Products

13.1.3.3.      Financials (As Per Availability)

13.1.3.4.      Key Market Focus & Geographical Presence

13.1.3.5.      Recent Developments

13.1.3.6.      Key Management Personnel

13.1.4.  Hankook Tire & Technology

13.1.4.1.      Company Details

13.1.4.2.      Products

13.1.4.3.      Financials (As Per Availability)

13.1.4.4.      Key Market Focus & Geographical Presence

13.1.4.5.      Recent Developments

13.1.4.6.      Key Management Personnel

13.1.5.  Pirelli Tyre S.p.A.

13.1.5.1.      Company Details

13.1.5.2.      Products

13.1.5.3.      Financials (As Per Availability)

13.1.5.4.      Key Market Focus & Geographical Presence

13.1.5.5.      Recent Developments

13.1.5.6.      Key Management Personnel

13.1.6.  Goodyear Tire and Rubber Company

13.1.6.1.      Company Details

13.1.6.2.      Products

13.1.6.3.      Financials (As Per Availability)

13.1.6.4.      Key Market Focus & Geographical Presence

13.1.6.5.      Recent Developments

13.1.6.6.      Key Management Personnel

13.1.7.  PT Continental Tyres Indonesia

13.1.7.1.      Company Details

13.1.7.2.      Products

13.1.7.3.      Financials (As Per Availability)

13.1.7.4.      Key Market Focus & Geographical Presence

13.1.7.5.      Recent Developments

13.1.7.6.      Key Management Personnel

13.1.8.  YHI Indonesia, PT.

13.1.8.1.      Company Details

13.1.8.2.      Products

13.1.8.3.      Financials (As Per Availability)

13.1.8.4.      Key Market Focus & Geographical Presence

13.1.8.5.      Recent Developments

13.1.8.6.      Key Management Personnel

13.1.9.  Toyo Tires Indonesia

13.1.9.1.      Company Details

13.1.9.2.      Products

13.1.9.3.      Financials (As Per Availability)

13.1.9.4.      Key Market Focus & Geographical Presence

13.1.9.5.      Recent Developments

13.1.9.6.      Key Management Personnel

13.1.10.   PT Michelin Indonesia

13.1.10.1.   Company Details

13.1.10.2.   Products

13.1.10.3.   Financials (As Per Availability)

13.1.10.4.   Key Market Focus & Geographical Presence

13.1.10.5.   Recent Developments

13.1.10.6.   Key Management Personnel

14.  Strategic Recommendations/Action Plan

14.1.  Key Focus Areas

14.1.1.  Target Vehicle Type

14.1.2.  Target Demand Category

14.1.3.  Target Tire Construction Type

15.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Indonesia Tire Market was estimated to be USD 3.85 Billion in 2024.

The Indonesia tire market is driven by increased vehicle usage and the rising demand for replacement tires due to older vehicle fleets. Government investments in road infrastructure and the growth of e-commerce and delivery services also boost tire demand. Additionally, the focus on eco-friendly tires and stricter vehicle emissions regulations creates further growth opportunities.

In 2024, the fastest-growing segment in the Indonesia tire market by vehicle type was the two-wheeler segment. The increasing popularity of motorcycles, driven by affordability, fuel efficiency, and urban congestion, significantly boosted demand for both OEM and replacement tires. As more consumers opt for motorcycles for daily commuting, the two-wheeler tire market continues to see strong growth across the country.

Java was the dominant region in the Indonesia tire market. With its high population density, economic activity, and major urban centers like Jakarta and Surabaya, Java accounts for the largest share of vehicle sales and tire demand. The region's extensive infrastructure, growing middle class, and significant commercial vehicle usage make it the key driver of the tire market in Indonesia.

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