The Market for Rubber Automotive Components and Parts in Indonesia: Focus on Replacement Market (REM) (December 2014)

84 pages. This report explores the market for rubber automotive components and parts in Indonesia focusing on the replacement market (REM). The report provides information on demand for automotive rubber products and identifies the market potential for exports of the products from Malaysia. Indonesia is known as a new and growing market for many products and services including rubber products. The country achieved rapid economic growth of 6.2 – 6.5% in recent years (2010 – 2012) supported by strong domestic demand given its sizeable population of 245 million. The large majority of the population are still young whilst the size of population in the middle income bracket is expanding. Over the last decade, Indonesia witnessed foreign direct investments by several global automobile manufacturers and assemblers looking to expand their businesses in the country. This has helped to transform the country’s overall automotive manufacturing industry and subsequently creates demand for high quality parts. The strong growths in vehicle sales will eventually expand the market for replacement products including rubber spare parts.