Mandiri Sekuritas Auto Sector: Jan-Feb10 tire sales for 4 and 2 wheelers up by 55% and 23%, respectively

Based on the latest from the Tires Association of Indonesia (APBI), tires unit sales were up by 55%yoy for 4 wheelers to 7.9mn units and by 23%yoy to 5.2mn for motorcycles. New tires for cars and motors were up by 60% and 30%, respectively, thus reflecting the growth experienced by vehicle sales on both segments in the first two months of 2010. For motors, biggest segment is the replacement with total contribution of 54% while for 4- wheelers, export is the main driver with 72% of total sales. Early indication for strong 1Q10 numbers remains with Dunlop expecting a 62%yoy jump in tire sales to 1.1mn units.