Publicly-listed Indonesian tyre manufacturer MultistradaArahSarana is anticipating a 10% increase in sales during Ramadan as consumers prepare for the annual EidulFitr.
The Indonesian Transportation Ministry estimates that 2.4 million cars and 5.6 million motorcycles are expected to hit the roads for the holiday exodus, locally known as mudik. These figures are equivalent to a 50% and 4.5% year-on-year (YOY) increase, respectively.
According to Multistrada marketing director Uthan M. AriefSadikin, most of the people making their way back to their hometowns usually tried to keep their vehicles in good condition which includes changing their tyres two weeks ahead of the holiday. The company produces the Achilles tire-brand for cars and Corsa brand for motorcycles.
AriefSadikin also said that they started distributing stocks to the stores a month earlier as doing that in mid-Ramadan will be difficult because cargo trucks are prohibited from passing the main roads a week before Ramadhan ends due to mudik.
The tire producer only distributes 10% of its production for original equipment manufacturer (OEM) products, which are installed on vehicles at the factory and carry the manufacturer’s warranty.
Multistrada vice president and director Henry Komala told a local news agency that the domestic car tyre market is already saturated with a lot of brands, so they looked for opportunities in the motorcycle segment as the market is not as tight as the car market.
Source: The Jakarta Post