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Michelin Looks to Make a Splash in Local Tire Market
Faisal Maliki Baskoro& Muhamad Al Azhari | November 28, 2011

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Michelindo Mitra Abadi, the importer and sole distributor of Michelin tires in Indonesia, has started selling motorcycle tires here for the first time and is targeting 400,000 units in 2012, a company director said on Monday.

France-based Michelin has expanded its business in Indonesia by introducing different varieties of motorcycle tires for dragbikes, underbones and scooters.

Michelindo, established in 2008 with local tire importer Sinar Baru as a major shareholder, was appointed as the Indonesian importer and sole distributor of the tires, which are manufactured in Thailand.

“As the third-largest motorcycle market in the world, Indonesia promises a huge market for motorcycle tires and motorcycle-related products,” said Jemmy Tantoro, a Michelindo director.

The bullish view was backed by data from the Indonesian Motorcycle Industry Association (AISI), which showed average sales growth of about 20 percent a year from 2007 to 2010.

This year, however, sales growth has slumped on the global economic crisis and flooding in Thailand that affected production. AISI has projected sales of 8.1 million to 8.2 million units this year, an 11 percent to 12 percent increase from last year. As of October, 6.7 million motorcycles had been sold across the country.

Michelin has sold tires in Indonesia for four-wheeled vehicles for around 17 years through Sinar Baru.

Jemmy said Michelindo had conducted a study of the motorcycle industry and found that Indonesians “prefer to set off and modify a motorcycle, really love the world of motorcycle racing and like the world-famous brands with premium quality.” 

This, he said, “is the reason we launched the tires for the motorcycle category.”

Michelindo said it was aiming for 28 to 30 distributors in the country. Currently there are 10.

Michelin’s main competitors in the motorcycle tire business here include Multistrada, which produces the Corsa MC and MT Cross tires, and Gajah Tunggal, which produces the IRC, the most popular motorcycle tire here.