Indonesia Automotive Metals Market Overview, 2030

The automotive metals market plays a crucial role in the automobile industry, supporting the development of vehicles with advanced materials designed to enhance safety, fuel efficiency, and structural integrity. The demand for metals such as steel, aluminum, and magnesium has been steadily increasing as automakers strive to produce lightweight, durable, and high-performance vehicles. Steel remains the backbone of automotive manufacturing, particularly advanced high-strength steel (AHSS), which is widely used in crash-resistant frames, reinforced body structures, and safety components. Major steel manufacturers have been investing in next-generation steel grades with higher tensile strength, improved corrosion resistance, and enhanced formability to meet the evolving requirements of vehicle production. However, with the growing focus on sustainability and fuel efficiency, the demand for lightweight metals such as aluminum and magnesium has surged. Aluminum, known for its superior strength-to-weight ratio, is increasingly used in structural panels, engine blocks, and body frames to reduce vehicle weight while maintaining durability. Magnesium, which is even lighter than aluminum, is being explored for specialized applications to further enhance efficiency. The rising adoption of electric and hybrid vehicles has also reshaped the demand for automotive metals, with specialized alloys being utilized for battery enclosures, powertrains, and thermal management systems. As the automotive industry continues to evolve, the integration of innovative metal compositions, advanced processing techniques, and sustainable manufacturing practices is becoming increasingly important to maintain competitiveness and meet regulatory requirements.

According to the research report "Indonesia Automotive Metals Market Overview, 2030," published by Bonafide Research, the Indonesia Automotive Metals market is anticipated to grow at more than 5.82% CAGR from 2025 to 2030. The supply chain of the automotive metals market is shaped by domestic production capabilities, global trade policies, and advancements in metallurgical technologies. The availability of key raw materials such as iron ore, bauxite, and rare earth elements significantly influences market dynamics, with fluctuations in global commodity prices and trade agreements impacting production costs. While steel remains the most widely used metal in vehicle manufacturing, automakers are increasingly investing in aluminum and composite materials to improve performance and energy efficiency. The demand for high-strength and corrosion-resistant steel grades has led to extensive research and development efforts, focusing on ultra-high-strength steel (UHSS) and galvanized steel solutions that enhance structural integrity without adding excess weight. Additionally, advancements in aluminum production, including high-precision extrusion, rolling, and casting technologies, have facilitated the creation of lightweight yet strong automotive components. However, challenges such as material cost fluctuations, reliance on imports for specific high-grade metals, and evolving regulatory standards pose hurdles for manufacturers. To mitigate these risks, automotive metal producers are exploring long-term sourcing strategies, increasing domestic production capacity, and adopting recycling initiatives to ensure a stable and sustainable supply chain. The push for environmental sustainability has further accelerated the shift toward low-carbon metal production methods, with manufacturers incorporating energy-efficient smelting techniques, hydrogen-based steelmaking, and closed-loop recycling systems to reduce carbon footprints. The transition toward electric and autonomous vehicles has also prompted research into smart metals with enhanced electromagnetic shielding properties, ensuring that advanced driver-assistance systems (ADAS), sensors, and electronic components operate efficiently. As automotive manufacturers navigate an increasingly complex regulatory and technological landscape, the role of high-performance metals will continue to evolve, driving innovation and shaping the next generation of mobility solutions.

The application of automotive metals spans multiple vehicle components, each requiring specific material properties to meet performance, safety, and cost considerations. Body structures predominantly utilize high-strength steel due to its superior impact resistance and crashworthiness. However, the integration of aluminum in body panels, doors, and hoods is becoming more prevalent as manufacturers seek to reduce weight without compromising durability. The development of multi-material vehicle structures, where steel and aluminum are combined to optimize strength-to-weight ratios, has gained traction as an industry-wide strategy for improving efficiency and meeting stringent regulatory standards. Powertrain components, including internal combustion engines, electric drivetrains, and transmissions, require metals that offer thermal stability, mechanical strength, and corrosion resistance. While cast iron was traditionally used in engine manufacturing, advancements in material science have led to the widespread adoption of aluminum alloys in powertrain systems to enhance fuel economy and overall performance. The rise of electric vehicles has further influenced material selection, with heat-resistant alloys and lightweight metals playing a critical role in battery enclosures, thermal management systems, and electric motor casings. The shift toward electrification has also necessitated the development of high-conductivity metals for improved energy efficiency and battery life. The continuous evolution of vehicle powertrains underscores the importance of specialized metals in optimizing performance, reliability, and energy consumption in next-generation automobiles.

The demand for automotive metals varies across different vehicle segments, including passenger cars, commercial vehicles, and two-wheelers, each with distinct material requirements. Passenger vehicles, including sedans, hatchbacks, and SUVs, account for a significant share of the automotive industry, with manufacturers prioritizing lightweight metals such as aluminum and advanced steel alloys to improve safety and fuel efficiency. The rising adoption of electric and hybrid models has further amplified the demand for lightweight metals, as automakers seek to extend battery range and reduce emissions. Light commercial vehicles, such as vans and pickup trucks, require a balance of strength and lightweight materials to optimize payload capacity while maintaining cost efficiency. Heavy commercial vehicles, including trucks and buses, continue to rely heavily on high-strength steel for structural endurance, although advancements in lightweight materials are being explored to enhance fuel economy and meet sustainability goals. The growing focus on emission regulations and fuel efficiency in the commercial vehicle sector has driven innovation in metal applications, leading to the development of reinforced steel and aluminum solutions that improve vehicle longevity and reduce maintenance costs. Two-wheelers, including motorcycles and electric scooters, form an emerging segment where lightweight metals such as aluminum play a critical role in enhancing speed, performance, and battery efficiency in electric models. As automakers continue to refine vehicle designs, the use of high-performance automotive metals will remain integral to addressing evolving industry needs, ensuring structural integrity, and optimizing vehicle efficiency across all transportation categories.

The increasing adoption of electric and autonomous vehicles is driving new developments in automotive metals, with an emphasis on sustainability, recyclability, and advanced material properties. As regulatory frameworks become more stringent, manufacturers are focusing on reducing vehicle weight to improve energy efficiency and meet environmental standards. The integration of recycled metals, closed-loop manufacturing systems, and eco-friendly processing techniques is gaining traction as part of broader sustainability initiatives. The demand for smart metals with enhanced electromagnetic shielding capabilities is also growing, particularly for advanced driver-assistance systems (ADAS), connected vehicle technologies, and high-performance computing applications in autonomous vehicles. As the automotive industry undergoes a rapid transformation, the development and application of next-generation automotive metals will play a pivotal role in shaping the future of mobility. With continued research, investment in material innovations, and collaboration between automakers and metal producers, the automotive metals market is well-positioned to support the evolving needs of the global transportation sector, ensuring long-term competitiveness and industry resilience.




Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Automotive Metal Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product
• Steel
• Aluminum
• Others

By Application
• Body structure
• Power train
• Suspension
• Others

By End-Use
• Two Wheelers
• Passenger Vehicle
• Light Commercial Vehicles
• Heavy Commercial Vehicles

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.