Indonesia Two-Wheeler Tire Market Valued at USD 2.06 Billion in 2025, Projected to Reach USD 3.04 Billion by 2032

The Indonesia Two-Wheeler Tire Market was valued at USD 2.06 billion in 2025 and is projected to reach USD 3.04 billion by 2032, expanding at a CAGR of 6.79% during the forecast period from 2026 to 2032. Market growth is structurally underpinned by the nation's high dependence on motorcycles for daily commuting and recurring replacement requirements. This consistent vehicle usage keeps tire demand resilient despite broader macroeconomic fluctuations.

Sustained momentum in domestic motorcycle production and sales continues to drive the original equipment manufacturer pipeline. Furthermore, urban mobility challenges, such as severe traffic congestion in metropolitan areas like Jakarta, significantly accelerate tread wear through continuous stop-and-go driving conditions. Consequently, the massive existing fleet of registered two-wheelers creates an expansive, recurring replacement ecosystem that remains the core long-term revenue engine for domestic tire manufacturers.

In terms of construction type, bias tires maintain a clear stronghold across the country's two-wheeler landscape. This dominance is primarily driven by their extensive deployment in high-frequency commuter and utility-focused applications where cost-efficiency is essential. Moreover, leading domestic manufacturers continue to scale up production of these commuter-focused brands to directly satisfy the high volume requirements of price-sensitive aftermarket channels and localized fleet systems.

In parallel, scooters and mopeds stand out as the leading vehicle category fueling tire consumption due to their alignment with urban transit patterns. Demand is heavily reinforced by large-scale ride-hailing and logistics fleets that log high daily mileages. Additionally, the gradual emergence of electric two-wheelers is shaping the long-term landscape, prompting specialized innovations focused on low rolling resistance and enhanced load capacity.

Regionally, the Java region presents the strongest growth prospects within the archipelago, fueled by high population density, rapid urbanization, and a concentrated motorcycle-dependent delivery network. Ongoing localized capacity expansions and strategic foreign factory setups continue to intensify market competition while securing domestic supply channels, further states the research report, “Indonesia Two-Wheeler Tire Market 2026”.

Indonesia Two-Wheeler Tire Market Highlights

Indonesia Two-Wheeler Tire Market size was valued at approximately USD 2.06 billion in 2025 and is projected to grow from USD 2.11 billion in 2026 to USD 3.04 billion by 2032. This steady expansion is heavily sustained by stable domestic macroeconomic conditions, including a 5.03% GDP growth rate in 2024 that helps bolster consumer household spending on daily mobility.
The industry is projected to register a CAGR of 6.79% during 2026–2032, driven by structurally high motorcycle dependence, recurring replacement cycles, and expanding urban fleet operations. Statistics indicate that motorcycles account for 83.8% of the national fleet with 139 million registered units, establishing a massive, long-term replacement pool that keeps volume demand highly resilient.
The Bias tire segment holds a dominant position in the market, accounting for 72% market share, supported by its widespread use in mass-market commuter and utility-focused applications. To satisfy this immense aftermarket volume, major local manufacturers like PT Gajah Tunggal Tbk maintain large-scale operations producing approximately 83,000 tires per day across motorcycle and commercial bias lines.
The Scooter & Moped segment dominates the vehicle type category with a 66% market share, heavily reinforced by high daily mileage from large-scale ride-hailing ecosystems like Gojek and Grab. This high-utilization commercial ecosystem, which features over 2 million driver-partners under Gojek alone, vastly intensifies daily mileage and accelerates recurring tire wear cycles.
The market remains moderately fragmented, with the top five players collectively holding around 37% share, reflecting a competitive landscape driven by pricing efficiency and distribution strength. Because full consolidation is absent, industry participants must focus deeply on manufacturing scale, localized production cost benefits, and strong brand positioning to maintain market leadership.

Indonesia Two-Wheeler Tire Market Segmentation

By Tire Type
- Radial Tire
- Bias Tire
By Vehicle Type
- Scooter & Moped
- Motorcycle
By Tire Size
- Tire Size 1
- Tire Size 2
- Tire Size 3
- Tire Size 4
- Tire Size 5
By Propulsion Type
- Internal Combustion Engine (ICE)
  - Up to 100 cc
  - 101 cc to 125 cc
  - 126 cc to 150 cc
  - Above 150 cc
- Electric
By Sales Channel
- Online
- Direct Sales
- Multi Brand Stores
- Exclusive Outlets
By Demand Type
- OEM
- Replacement/Aftermarket
By Region
- Java
- Sumatra
- Kalimantan (Borneo)
- Bali
- Rest of Indonesia