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Jakarta Post

Multistrada expects 10% tire sales increase ahead of Idul Fitri

Publicly listed tire manufacturer Multistrada Arah Sarana expects a 10 percent increase in sales during Ramadhan as consumers gear up for the annual Idul Fitri exodus. 

Anton Hermansyah (The Jakarta Post)
Jakarta
Fri, June 10, 2016

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Multistrada expects 10% tire sales increase ahead of Idul Fitri An employee shows a customer Achilles, Corsa, and Strada brand tires at Multistrada Arah Sarana's booth during the Indonesia International Motor Show in Jakarta on Sep. 27, 2015. (Antara/Audy Alwi)

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ublicly listed tire manufacturer Multistrada Arah Sarana expects a 10 percent increase in sales during Ramadhan as consumers gear up for the annual Idul Fitri exodus.  

Based on the Transportation Ministry’s estimate, 2.4 million cars and 5.6 million motorcycles are expected to hit the roads for the holiday exodus, locally known as mudik. The figures are a 50 percent and 4.5 percent year-on-year (yoy) increase, respectively.

Multistrada marketing director Uthan M. Arief Sadikin said most of those making their way back to their hometowns usually tried to keep their vehicle in prime condition, including by changing tires two weeks before Idul Fitri. The company produces the Achilles tire-brand for cars and Corsa brand for motorcycles

"We started distributing stocks to the stores a month earlier. If you do that in mid-Ramadhan, it will be difficult as cargo trucks are prohibited from passing the main roads a week before Ramadhan ends due to mudik," he said on Thursday in Jakarta.

The tire producer only distributes 10 percent of its production for original equipment manufacturer (OEM) products, which are installed on vehicles at the factory and carry the manufacturer's warranty.

"However, the domestic car tire market is saturated with a lot of brands. We saw a good opportunity in the motorcycle segment as the market is not as tight as the car market," Multistrada vice president director Henry Komala told thejakartapost.com. (ags)

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