German Tire Maker Continental to Expand in Indonesia
German tire maker Continental is keen to grow its business in Indonesia by adding additional products and distribution lines, a senior official at the Indonesian unit said on Friday.
During the Indonesian International Motor Show 2012, which took place in Jakarta from Sept. 20 to 30, Continental introduced a new premium product called Conti Sport Contact 5 tires, made for sedan-type cars and sport utility vehicles.
Elly Pudjiati, general manager for sales and marketing at Continental Sime Tyre, the Indonesian subsidiary of Continental, said Continental is aiming for high-end consumers since their products have been recommended by luxury car makers including Mercedes, Audi and BMW.
Continental Sime Tyre distributes and makes selected Continental tires in Indonesia. The German tire maker now has nine dealers in the country and aims to have two more by the end of this year.
Elly said the nine distributors are located in Jakarta and Central Java. Next year, the company will open a dealer in Surabaya and another in Medan. “In total, we will have 11 dealers,” she said.
Elly added that Continental tires do not only suit European or US-made cars; the company is now promoting usage of the tires on Japanese vehicles including those made by Toyota and Honda.
Continental, together with local company Mega Arvia Pratama Tiara, also produces tires for trucks.
Indonesia’s growing economy and rising middle-class have boosted demand for cars, and subsequently for tires. Foreign tire makers, including South Korea’s Hankook Tire, are keen to tap Indonesia’s market.