Use of Bio-Oils in Tire Manufacturing Process Encouraging Growth Prospects in the Passenger Car Tires Market in Indonesia: Technavio Report

Renewable energy

 

London, 06 July 2015: Technavio, the independent tech-focused global research firm, has published a report on the passenger car tires market in Indonesia 2015-2019, which is estimated to grow at a CAGR of 8.87% during the forecast period of 2014-2019.

With the improvement in the economy the personal consumption and personal spending capacity of consumers is expected to improve, which will lead to an increase in the demand for new cars. Expanding middle class in Indonesia and a relatively stable economy are increasing the number of potential car buyers, which is expected to translate into new car sales.

“An increasing trend of tire manufacturers using raw materials that are environmentally friendly has been witnessed in the tire industry,” says Faisal Ghaus, Vice President of Technavio.

“Yokohama has started using oil derived from orange peel in one of its models of passenger car tires. Currently, the company is using oils from orange peel for only one model of passenger car tire, but it is looking at ways of using it in commercial tires as well.”

Key Market Drivers

  • Favorable Economic Conditions
  • Emergence of LCGCs
  • Abundance of Natural Rubber

Key Market Trends

  • Development of Self-sealing Tires
  • Use of Bio-oils in Tire Manufacturing Process
  • Future SUV Concept Tire

Key Market Vendors

  • Tire Indonesia
  • PT Elang Perdana Tyre Industry
  • PT Gajah  Chen-Shin Rubber Ind. Co. Ltd./Maxxis Indonesia
  • PT Bridgestone Tunggal Tbk
  • PT Goodyear Indonesia Tbk
  • PT Industri Karet Deli
  • PT Michelin Indonesia
  • PT Multistrada Arah Sarana, Tbk
  • PT Sumi Rubber Indonesia – Dunlop

To define the market circumstances in the next 3-4 years, Technavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.

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