Tire industry faces export drop

The tire industry has begun feeling the pinch of the global economic downturn, with exports in the January-October period already dropping by 3.77 percent from a year earlier.

Indonesian Tire Producers Association (APBI) chairman Azis Pane said Tuesday exports of four-wheel tires stood at 25.5 million units in the first 10 months this year, lower than 26.5 million units booked in the same period last year.

"Tire exports fell to 25.5 million units in the January-October period from last year's record of 26.5 million units because of the global economic crisis," he said.

He said the crisis resulted in the industry losing sales in the United States and in the European Union -- the two largest markets for the industry -- by around 7 percent to 8 percent.

Azis said the industry also exported tires for motorcycles but in a "very small amount" to the Asia Pacific region.

As the global crisis will continue affecting the industry next year, Azis said tire exports would consequently fall by 10 percent.

"We're estimating that exports will reach $1.1 billion by the end of this year and there will be a drop of about 10 percent next year." -- JP