Indonesia Tire - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the indonesian tire market size was valued at USD 4.18 billion in 2025 and is estimated at USD 4.41 billion in 2026, and is projected to reach USD 5.76 billion by 2031, registering a CAGR of 5.49% between 2026 and 2031.

This report is Segmented by Season (Summer, Winter, and More), Tire Design (Radial, Bias, and More), Vehicle Type (Two-Wheelers, Passenger Cars, and More), Application (On-Road and Off-Road), End User (OEM and Aftermarket), Rim Size (Below 15 Inches, 15-20 Inches, and More), and Propulsion (Internal-Combustion Vehicles, and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Indonesia Tire Market Trends and Insights

Rapid Surge in Two-Wheeler Ownership Post-Pandemic

In December 2025, as commuters aimed to reduce their reliance on public transportation, motorcycle sales demonstrated a significant recovery. In Indonesia, motorcycle sales increased by 14.5% year-on-year, reaching 461,925 units in December 2025. This marked the fifth consecutive month of growth in the market. Active riders, particularly those utilizing higher displacement models for intercity travel, experienced accelerated tread wear, resulting in a replacement frequency of approximately 12 to 18 months. Additionally, digital financing platforms enhanced accessibility for ride-hailing drivers, which contributed to the expansion of the active fleet and subsequently supported the growth of the Indonesian tire market. Infrastructure improvements across secondary cities strengthened road connectivity, facilitating longer motorcycle journeys that necessitate the use of premium tires. Consequently, manufacturers with comprehensive two-wheeler portfolios have been able to maintain stable sales volumes, despite the increasing penetration of passenger cars in the market.

Government Road-Infrastructure Boom Unlocking Radial-Tire Demand

Annual public spending is concentrated on rebuilding highways and port access roads. These infrastructure improvements enable the operation of heavier trucks and sustained speeds, which provide significant advantages to radial technology. The completion of transportation corridors in Java and Sumatra has enhanced freight movement, resulting in shorter replacement cycles for commercial tires, a segment that constitutes a substantial portion of the demand in the Indonesian tire market. During the construction phase, fleets consume considerable volumes of tires, subsequently transitioning to maintenance-related purchases that support the continued adoption of radial tires over the long term. A similar trend is observed in regional infrastructure projects in Kalimantan and Sulawesi, as modernization efforts in logistics across the outer islands gain momentum. Local manufacturers with integrated rubber sourcing capabilities are well-positioned to secure initial contracts by complying with SNI quality standards, thereby strengthening their competitive advantage in the market.

Retread Proliferation Across Heavy-Truck Segment

Long-haul operators are increasing casing life by up to 60% through professional retreading, a process that costs approximately one-third of the price of a new tire. In the Indonesian tire market, advancements in highway surfaces are enabling multiple retread cycles, which in turn are reducing the demand for premium replacement tires. Organized retreaders, who comply with SNI regulations, are legitimizing the retreading practice and successfully attracting large fleet operators. In response to this trend, premium tire brands are implementing casing buyback programs and offering extended warranties to strengthen customer retention and loyalty. Additionally, new market entrants integrating retreading services are expanding their service portfolios to address the needs of cost-sensitive customers, thereby increasing competition within the market.

Other drivers and restraints analyzed in the detailed report include:

1. EV-Specific Tire Incentives in 2026 Green Tax Reform
2. OEM Shift to >=15-Inch Rims for Low-Cost SUVs/MPVs
3. Imported Budget Tires Pressuring Margins of Local Makers

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

In 2025, all-season products dominated the Indonesian tire market, capturing 47.33% of the market share. This trend aligns with Indonesia's tropical climate, which does not necessitate seasonal tire changes. These all-season tires are specially formulated for heat resistance and optimal traction during monsoons, ensuring dependable performance throughout the year. Meanwhile, summer tires are witnessing a surge, growing at a 7.13% CAGR. This growth is largely driven by urban drivers who prioritize sharper handling on well-maintained roads. Tire manufacturers are now emphasizing silica-rich compounds and asymmetric tread patterns, balancing grip and longevity. On the other hand, winter tires, primarily imported for expatriate vehicles, occupy a niche space and generate minimal revenue in Indonesia's tire market.

Given the forecasted continuation of warm weather, there is a sustained push in research and development to enhance the stability of all-season compounds at elevated pavement temperatures. The growth of summer tires is closely tied to the rising sales of premium passenger cars and an increase in motorsport events, both of which amplify consumer demand for responsive handling. Suppliers are differentiating themselves by highlighting UTQG ratings, conducting wet-brake tests, and emphasizing aquaplaning resistance, particularly during the monsoon. Retailers are strategically placing summer tires next to alloy-wheel upgrades, capitalizing on the trend of larger rim sizes. While winter tires may not dominate the market, their technological advancements are benefiting tropical tire lines, particularly in enhancing wet-grip features.

In 2025, radial construction dominated the Indonesian tire market, capturing a substantial 91.46% share, supported by its superior tread life and fuel efficiency across various terrains. While bias ply designs remain prevalent in low-speed agriculture and older off-road vehicles, they are increasingly facing cannibalization. Meanwhile, airless non-pneumatic formats are set to grow at a robust 7.58% CAGR, driven by logistics firms testing puncture-proof solutions for their remote operations. Major manufacturers are capitalizing on Indonesia's production capabilities, localizing advanced steel belt technology, and simultaneously reducing import costs.

Expanding airless tire capacity necessitates innovative elastomer designs and specialized molding machinery, leading to strategic partnerships with global pioneers. Initial applications are centered on forklifts, mining utility vehicles, and delivery fleets, all prioritizing uninterrupted operations. Radial technology is advancing with the integration of nanocomposite belts and low rolling resistance silica blends, aligning with OEM emissions objectives. Thus, the Indonesian tire market finds itself at a crossroads, balancing the dominance of radial designs with the allure of emerging niches that promise higher margins and a stronger technological brand presence.

In 2025, two-wheelers accounted for 36.21% of Indonesia's tire market, highlighting the significant role of motorcycles in both urban and intercity travel. Meanwhile, driven by rising incomes, accessible financing, and incentives for domestic vehicle assembly, the demand for passenger cars is surging at a 6.11% CAGR. As e-commerce logistics expand, light commercial vehicles are experiencing growth. At the same time, heavy trucks play a crucial role in the plantation and mining supply chains, supporting the size of Indonesia's tire market.

Motorcycle tires are evolving, focusing on electric vehicle (EV) models that feature reinforced sidewalls and tread blocks designed for reduced noise. The increasing demand for passenger cars creates opportunities for technologies such as run-flat and self-sealing tires. These are particularly beneficial for city dwellers, where roadside assistance might not be readily available. Suppliers in the truck segment are expanding their offerings to include retread-compatible casings, catering to budget-conscious fleet managers. Collectively, these industry shifts not only diversify revenue streams but also strengthen the resilience of Indonesia's tire market, supported by its broad multi-segment engagement.

Complete Report Scope:

• By Season
  • Summer
  • Winter
  • All-Season
• By Tire Design
  • Radial
  • Bias
  • Non-pneumatic/Airless
• By Vehicle Type
  • Two-Wheelers
  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Trucks and Buses
  • Off-the-Road and Specialty (OTR, Agriculture, Mining, Racing)
• By Application
  • On-Road
  • Off-Road (Construction, Mining, Agriculture)
• By End User
  • OEM
  • Aftermarket (Replacement and Retread)
• By Rim Size
  • Below 15 inches
  • 15 - 20 inches
  • Above 20 inches
• By Propulsion
  • Internal-Combustion Vehicles
  • Battery-Electric Vehicles
  • Hybrid and Fuel-Cell Vehicles

List of Companies Covered in this Report:

1. PT Gajah Tunggal Tbk
2. Bridgestone Tire Indonesia
3. Hankook Indonesia
4. PT Multistrada Arah Sarana Tbk
5. Michelin Indonesia
6. Goodyear Indonesia
7. PT Suryaraya Rubberindo Industries
8. Yokohama Indonesia
9. Continental Tire Indonesia
10. Pirelli - PT Evoluzione Tire
11. Sumitomo Rubber Indonesia
12. Giti Tire Indonesia
13. Apollo Tyres Limited
14. Maxxis (Cheng Shin Rubber Industry Co.)
15. Trelleborg Wheel Systems
16. Balkrishna Industries Limited (BKT Tires)
17. Sumitomo Rubber Industries (Dunlop)
18. PT Elangperdana Tyre Industry
19. Double Coin Tire Group Co., Ltd

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support