Rubber Journal Asia Tyre Market
Asian tyre market keeps on rolling There is stiff competition in the marketplace, according to GfK, with some “weaker players” being booted out of the scene, it says. “This year, Malaysia and Philippines reported the greatest number of replacement car tyre brands at 61 and 59, while players in the Thai market stood at 51. Car owners in Indonesia had the least number of options, with only 24 car tyre brands available to them,” GfK says in its report. “What makes the Thailand market tick is because of firstly, the implementation of the first-time car buyer scheme in 2012 and 2015, which stimulated car sales substantially, thereby resulting in demand surges for replacement car tyres in the subsequent years,” Jasmine Lim of GfK in Asia, says. On the other hand, Lim explains the case in Malaysia as a post-GST affliction. Its sales decline is due to “aggressive” brand promotions by manufacturers that backfired on their brand equity. “Such strategy (of progressively offering more affordable prices to cater to wider sectors of consumers) could act like a double-edged sword where they risk diluting their brand equity and value over time, while consumers benefit from being able to choose from a widening range of products at various price levels,” she adds.
Not only is Asia a major producer of rubber, but the region is also a burgeoning market for global tyre manufacturers, says Angelica Buan in this report.
ASEAN figures strongly in growth orecast to reach nearly 3 billion units by 2022, the global market for tyres is unflinching amidst fluctuating prices of rubber in the world market. Asia Pacific captures a strong spot in the global tyres market. Indian market research firm Gfk says that in the segment of replacement car tyres, some 20 players have made inroads in four key Southeast Asian cities in the last two years.
Tyre applications in aviation take flight sia’s air travel market continues to expand. The region’s carriers posted an increase of 10.3% in January this year, compared to the same period a year ago, according to the International Air Transport Association (IATA). Japan’s aviation sector is a strong contender, specifically in domestic travel alone. The country’s domestic travel accounts for 1.2% of the global domestic travel – the latter showing an increase 6.8% of domestic air travel year-on-year, IATA’s January Asia Pacific captures a strong spot in the global tyres market report says. Japan is a lucrative market for imported aircraft, Meanwhile, sales in dominant replacement car parts, and engines, the Maine International Trade tyre markets in the region are not consistent. In Centre 2015 aviation reports. The country is a the first eight months of the year, Thailand and choice base for some of the world’s top tyre makers. Malaysia showed healthy growth in sales volume Amidst the soaring prospects for air travel, of replacement car Japanese tyre maker tyres by 8% and 3%, Bridgestone is gearing respectively; while “The regional air travel market up production of sales in Indonesia, as well as the Philippines posted an increase of 10.3% this year, aircraft tyres at its Japanese plant. slipped 3% to 4%, boosting sales of aircraft tyres” Investing more than respectively, over the US$20 million at its plant in Kurume, Bridgestone is same period, Gfk reports. increasing capacity by 50%. The firm is undertaking Thailand, Malaysia, Philippines and Indonesia are this expansion to meet the rising demand in the the four key markets where GfK conducts Point of region, forecast to triple air traffic by 2035. Sales tracking for car tyres in ASEAN.
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