On February 10, news broke that “Sichuan Yuanxing Rubber Co., Ltd.”, a leader in the field of domestic two-wheeler tires, conducted an inspection and evaluation in Indonesia and may invest in building a factory in 2027.
Recently, the “Yuanxing Rubber” Indonesian factory project has been officially signed and will soon become the third tire factory from China to land in Indonesia.
According to statistics, Indonesia currently has 15 tire factories with a total production capacity of approximately 80.63 million units/year and 98,000 tons/year.
Previously, “Zhongce” invested US$280 million in the Indonesian factory, covering three main categories: truck and bus tires, bias tires, and motorcycle tires. It also planned an 85,000-ton carbon black production line.
The project will be profitable immediately after it is put into operation. In the first half of 2025, the revenue will exceed 200 million and the net profit will be more than 20 million. Subsequent construction is accelerating and is expected to be put into production in the first half of 2026.
“Sailun” Indonesian factory is its fourth overseas base in Southeast Asia. It will roll off the first passenger tire in 2025 and plans to design 3.6 million passenger tires and 40,000 tons of off-highway tires.
“Sichuan Yuanxing Rubber Co., Ltd.” was founded in 1996, starting from a rubber and plastic factory in Chengdu.
From January to September 2025, the output value will be approximately 2.7 billion yuan, a year-on-year increase of 10%. The annual output value is expected to be 3.6 billion yuan, ranking among the top 100 manufacturing enterprises in Sichuan.
Its products cover electric vehicles, motorcycles, cars and ATV tires, supporting brands such as HONDA, Dachangjiang, YAMAHA, Suzuki, Yadea, Emma, Xinri, Dongfeng, Xiaomi, Meituan, Didi, and Nine.
The goal is to become a world-class motorcycle, electric vehicle, and automobile tire manufacturing enterprise.
In recent years, Yuanxing Rubber has begun to enter the field of PCR tires while consolidating its position in the two-wheel tire market.
The smart factory invested 1.32 billion yuan has been put into full production, and the PCR tire “Liyu” brand will be released in May 2025.
From a market perspective, Indonesia is the largest two-wheeled vehicle market in ASEAN and the third largest in the world. Motorcycles are the main form of private transportation, and the two-wheeled tire market has a strong consumer base.
According to data from the Indonesian National Traffic Police Corps, as of 2025, the number of motorcycles nationwide has exceeded 137 million, accounting for 83.6% of all means of transportation, while there are only about 20.1 million private cars.
Statistics show that Indonesia has a population of approximately 270 million and approximately 67.5 million households, with an average of 2 motorcycles per household.
In some urban areas such as Jakarta, many families own 2-4 cars.
In terms of sales, according to data from the Indonesian Motorcycle Industry Association (AISI), sales will reach 5.22 million units in 2022, 6.23 million units in 2023, and 6.3 million units in 2024.
Against the background of the slowdown in the Indonesian automobile market in 2025, motorcycle sales will continue to show a steady upward trend.
AISI data shows that from January to November 2025, the country’s motorcycle sales reached 5.95 million units, a nominal increase of 0.35% compared with the same period last year.
However, investing is not always smooth sailing.
In June 2025, the China Rubber Association reported that the Indonesian Tire Manufacturers Association (APBI) expressed concerns about the continued investment of Chinese tire companies in the local area. It was worried that new investments would aggravate overcapacity and therefore would reject 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 and build factories to produce mining vehicle, truck and bus tires in Indonesia, with a total investment of nearly US$2 billion.
It is not easy for “Yuanxing Rubber” to break through barriers and make investments.
The establishment of Yuanxing Rubber’s Indonesian factory will not only help it expand overseas markets, but also provide a new example for Chinese tire companies to “go global.”
