In the early morning streets of Jakarta, a torrent of millions of motorcycles flows through the streets and alleys. This country with over 137 million motorcycles is attracting the attention of global tire manufacturers with its vast two wheeler market. After Zhongce Rubber and Sailun Group, Sichuan Yuanxing Rubber Co., Ltd., a leading enterprise in the field of two wheeler tires in China, may plant new seeds on this tropical land.

According to sources, Yuanxing Rubber has conducted on-site inspections and evaluations in Indonesia in 2026 and may officially invest in building a factory in 2027. Once it lands, this will be the third Chinese tire factory that Indonesia has welcomed after Zhongce and Sailun.

Far Star Rubber from Chengdu to the World

Sichuan Yuanxing Rubber Co., Ltd. was founded in 1996, starting from a rubber and plastic factory in Chengdu. After 30 years of development, it has become a leading enterprise in the field of two wheeler tires in China. From January to September 2025, the company will achieve an output value of approximately 2.7 billion yuan, a year-on-year increase of 10%. It is expected that the annual output value will reach 3.6 billion yuan, ranking among the top 100 manufacturing enterprises in Sichuan.

Yuanxing's products cover electric vehicles, motorcycles, cars, and ATV tires, with supporting supply of HONDA, Dachangjiang YAMAHA、 Suzuki Yadea, Aima, Shinri, Chunfeng, Xiaomi, Meituan, Didi, Jiuhao and other well-known brands. The company has always had the vision of building a world-class motorcycle, electric vehicle, and automotive tire manufacturing enterprise.

In recent years, while consolidating its position in the two wheel tire market, Far Star Rubber has also begun to enter the PCR tire field. The smart factory built with an investment of 1.32 billion yuan has been fully put into operation, and the PCR tire brand "Liyu" was officially launched in May 2025, marking the company's strategic extension from a two wheel to a four wheel market.

The golden opportunity for Indonesian two wheeler tires

Indonesia is the largest two wheeler market in ASEAN and the third largest in the world, and motorcycles have long surpassed transportation as a way of life in this archipelago country. According to data from the Indonesian National Traffic Police Corps, as of 2025, the total number of motorcycles in the country has exceeded 137 million, accounting for 83.6% of all transportation vehicles, while the number of private cars is only about 20.1 million.

Based on a population of approximately 270 million and 67.5 million households in Indonesia, the average household owns 2 motorcycles. In urban areas such as Jakarta, many families own 2 to 4 vehicles, with an astonishing penetration rate.

In terms of sales, according to data from the Indonesian Motorcycle Industry Association, sales reached 5.22 million units in 2022, climbed to 6.23 million units in 2023, and stabilized at 6.3 million units in 2024. In 2025, despite the overall slowdown of the Indonesian automotive market, motorcycle sales will still maintain a stable and upward trend. From January to November 2025, the sales of motorcycles in the country have reached 5.95 million units, a nominal increase of 0.35% compared to the same period last year.

From the perspective of vehicle preferences, automatic transmission scooters dominate the market. In 2024, automatic transmission scooters accounted for 90.39% of the total sales of 5.72 million units. According to data from market research institutions, the revenue of the Indonesian scooter market is expected to reach about 6.6 billion US dollars in 2025, with a unit sales volume of about 5.38 million vehicles, and will continue to grow at a compound annual growth rate of about 4.72%. For Far Star Rubber, which focuses on two wheeler tires, this market undoubtedly has huge imagination space.

The uncertainty of building a factory in Indonesia

However, the road behind the opportunity is not smooth. At present, the total tire production capacity in Indonesia has reached approximately 80.63 million pieces per year and 98000 tons per year. Pioneers have firmly established themselves on this land: Zhongce Rubber has invested 280 million US dollars, covering three main categories of truck tires, bias tires, and motorcycle tires, and has also planned an 85000 ton carbon black production line. The Zhongce Indonesia factory project is profitable as soon as it is put into operation, with a revenue of over 200 million yuan and a net profit of over 20 million yuan in the first half of 2025. Subsequent construction is accelerating and it is expected to be put into operation gradually in the first half of 2026. Sailun Group will produce its first passenger tire in Indonesia in 2025, with a planned design of 3.6 million passenger tires and 40000 tons of off-road tires. This will be Sailun's fourth overseas base in Southeast Asia.

It is worth noting that in June 2025, the China Rubber Industry Association reported that executives of the Indonesian Tire Manufacturers Association expressed concerns about Chinese tire companies' continued investment in the local area, fearing that new investments would exacerbate overcapacity, and refused investment applications for new tire factories from China. At that time, it was revealed that three tire companies from China were planning to invest in building factories in Indonesia to produce tires for mining vehicles, trucks, and buses, with a total investment of nearly 2 billion US dollars. Keywords: Southeast Asian Engineering Information Network, Overseas Engineering Construction

In the past, Chinese tire companies regarded Southeast Asia as a cost depression; Nowadays, more and more companies are positioning themselves as regional centers - not only for production, but also for being close to the market, supply chain, and the emerging manufacturing network of ASEAN. From the product features of Yuanxing, its Indonesian factory mainly targets the huge two wheeled tire market with a focus on precision. However, under the dual variables of local industrial policies and market competition patterns, it still takes time to give an answer on how this move will come to fruition. Editor/Yang Beihua