Singapore
Growth in the Indonesian tire aftermarket or replacement market expects to be fueled by multi purpose vehicles (MPVs).
"MPVs are the major types of vehicles being sold in the Indonesian market and considering their role as transportation vehicles in difficult road conditions this segment expects to drive the overall growth of the tire aftermarket," notes Frost & Sullivan Research Associate Brijesh Sheregar.
New analysis from Frost & Sullivan (www.automotive.frost.com), Indonesia Tire Aftermarket, reveals that revenues in this market totaled $1.09 billion in 2005 and can reach $2.86 billion in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Indonesia Tire Aftermarket, then send an e-mail to Alice Chia, Corporate Communications, at alice.chia@frost.com with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
Sheregar says that vehicle sales have registered a significant growth in Indonesia after the economic downturn in 1998.
Newer vehicles such as the Toyota MPV expect to further boost sales, thereby sustaining growth and leading to increased volumes in the tire aftermarket. In addition, the robust growth of the used vehicles market will add to aftermarket tire sales, as used vehicles are the most common recipients of new tires for a variety of reasons other than wear and tear.
"Used car dealers commonly replace tires either as a means to entice buyers or as part of the sales agreement," Sheregar adds.
The retreading of tires, which is almost one-quarter of the cost of a new tire, is likely to be a major restraint for tire sales in the Indonesian tire aftermarket. Its impact is likely to be most pronounced in the commercial vehicles market, where retreading is undertaken at least two or three times, affecting the replacement of tires and revenues of market participants. The introduction of radials, however, expects to reduce the scope for retreading.
"As an added challenge, an Indonesian consumer is highly price conscious and often postpones the purchase of a new set of tires until they are absolutely necessary," says Sheregar. "This price consciousness is also impacting the sale of premium segment tires and automobile manufacturers are less likely to sell performance vehicles that require premium tires in Indonesia."
Driven primarily by the increased number of on-road automobiles and the greater acceptance of premium tire varieties, the overall Indonesian tire aftermarket will continue to grow in terms of revenues and unit shipments. Although market revenues expect to increase, profit margins of manufacturers will remain stable or even decline slightly due to the rise in energy prices and material costs.
Indonesia Tire Aftermarket is part of the Transportation Subscription. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.
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Indonesia Tire Aftermarket
P02C - 18
Alice Chia, Corporate Communications - Asia Pacific, Frost & Sullivan, + 603 6204 5899 alice.chia@frost.com
Tori Foster, Corporate Communications - North America, Frost & Sullivan, +1 210 477 8448 tori.foster@frost.com
Source: Frost & Sullivan (Business Wire India)