South east asia tire market forecast & opportunities, 2024 - TechSci Research by David Johnson

2014 – 2024

SOUTH EAST ASIA TIRE MARKET COMPETITION, FORECAST & OPPORTUNITIES

PUBLISHED : JULY, 2019

MARKET INTELLIGENCE . CONSULTING

Ta b l e o f C o n t e n t s S. No.

Contents

Product Overview

Research Methodology

Analyst View

South East Asia Tire Production Overview

South East Asia Tire Market Outlook 5.1.

Market Size & Forecast

5.1.1. 5.2.

5.3.

By Value & Volume

Market Share & Forecast

5.2.1.

By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two-Wheeler, Three-Wheeler and OTR)

5.2.2.

By Demand Category (OEM Vs Replacement)

5.2.3.

By Radial vs. Bias

5.2.4.

By Rim Size

5.2.5.

By Tire Type

5.2.6.

By Country

5.2.7.

By Company

Indonesia Tire Market Outlook 5.3.1.

Market Size & Forecast 5.3.1.1.

5.3.2.

By Value & Volume

Market Share & Forecast 5.3.2.1.

By Vehicle Type

5.3.2.2.

By Demand Category

5.3.2.3.

By Radial vs. Bias

5.3.2.4.

By Rim Size

5.3.2.5.

By Tire Type

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Ta b l e o f C o n t e n t s S. No.

Contents 5.4.

Thailand Tire Market Outlook 5.4.1.

Market Size & Forecast 5.4.1.1.

5.4.2.

5.5.

Market Share & Forecast 5.4.2.1.

By Vehicle Type

5.4.2.2.

By Demand Category

5.4.2.3.

By Radial vs. Bias

5.4.2.4.

By Rim Size

5.4.2.5.

By Tire Type

Vietnam Tire Market Outlook 5.5.1.

Market Size & Forecast 5.5.1.1.

5.5.2.

5.6.

By Value & Volume

Market Share & Forecast 5.5.2.1.

By Vehicle Type

5.5.2.2.

By Demand Category

5.5.2.3.

By Radial vs. Bias

5.5.2.4.

By Rim Size

5.5.2.5.

By Tire Type

Malaysia Tire Market Outlook 5.6.1.

Market Size & Forecast 5.6.1.1.

5.6.2.

By Value & Volume

Market Share & Forecast 5.6.2.1.

By Vehicle Type

5.6.2.2.

By Demand Category

5.6.2.3.

By Radial vs. Bias

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Ta b l e o f C o n t e n t s S. No.

Contents

5.7.

5.6.2.4.

By Rim Size

5.6.2.5.

By Tire Type

Philippines Tire Market Outlook 5.7.1.

Market Size & Forecast 5.7.1.1.

5.7.2.

5.8.

By Value & Volume

Market Share & Forecast 5.7.2.1.

By Vehicle Type

5.7.2.2.

By Demand Category

5.7.2.3.

By Radial vs. Bias

5.7.2.4.

By Rim Size

5.7.2.5.

By Tire Type

Singapore Tire Market Outlook 5.8.1.

Market Size & Forecast 5.8.1.1.

5.8.2.

By Value & Volume

Market Share & Forecast 5.8.2.1.

By Vehicle Type

5.8.2.2.

By Demand Category

5.8.2.3.

By Radial vs. Bias

5.8.2.4.

By Rim Size

5.8.2.5.

By Tire Type

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Ta b l e o f C o n t e n t s S. No.

Contents

5.9.

Cambodia Tire Market Outlook 5.9.1.

Market Size & Forecast 5.9.1.1.

5.9.2.

By Value & Volume

Market Share & Forecast 5.9.2.1.

By Vehicle Type

5.9.2.2.

By Demand Category

5.9.2.3.

By Radial vs. Bias

5.9.2.4

By Rim Size

5.9.2.5

By Tire Type

Market Dynamics 6.1.

Drivers

6.2.

Challenges

Market Trends & Developments

Competitive Landscape 8.1.

PT Gajah Tunggal TBK

8.2.

PT Suryaraya Rubberindo Industries

8.3.

Bridgestone Corporation

8.4.

Compagnie Generale des Establissements Michelin

8.5.

Sumitomo Rubber Industries

8.6.

Continental AG

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Ta b l e o f C o n t e n t s

S. No.

Contents 8.7.

The Goodyear Tire & Rubber Company

8.8.

Deestone Corporation Limited

8.9.

Toyo Tire & Rubber Co. Ltd

8.10. 9. 10.

The Yokohama Rubber Co., Ltd.

Strategic Recommendations About Us & Disclaimer

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Product Overview Product Definition Global tire supplier Michelin defines tire as “A precisely engineered assembly of rubber, chemicals, fabric, and metal, designed to provide traction, cushion road shock and carry a load under varying conditions.” Run Flat Tires are defined by Global tire supplier Bridgestone as “A type of tires that are designed to be continuously driven even after loss of some or all inflation pressure due to puncture up to 50 miles at a maximum speed of 50 mph”. Classification According to Vehicle Type Vehicle Segment

Customer Segment

Passenger Car

Individuals

Light Commercial Vehicle Transport Companies, Logistics, Small Business Entrepreneurs Medium & Heavy Commercial Vehicle

Two-Wheeler

Individuals

Three-Wheeler

Passenger Transport & Logistics

OTR (Off-the-Road) Vehicle (OTR includes Mining, Construction & Industrial Equipment, Agriculture Vehicles and Others)

Mining Companies, Construction Companies, Infrastructure Industries, Farmers, Sports Companies, Adventure, etc.

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Research Methodology

Market Profiling •In-depth secondary research was conducted to determine top players in the South East Asia tire market, overall market size and segmental market size.

Data Collection

Research & Intelligence

Data Filter & Analysis

Actionable Insights

Business Solution

Formulating Questionnaire

•In order to conduct industry experts’ interviews, TechSci formulated a detailed questionnaire. Developing List of Respondents

❑

Identifying Key Opinion Leaders

❑ ❑

Questionnaire Design In-depth Interviews

•List of industry players and industry specialists was developed.

A Primary Research

B Desk Research

Data Collection •TechSci conducted interviews with industry experts and industry players for data collection and verification.

❑

Market Participants

❑

Key Strengths

❑

Tire Portfolio

❑

OEM Tie-ups

❑

Recent Developments

❑

Market Changing Aspects/Dynamics Government Policies

❑ ❑

Company Analysis

Final Conclusion

Data Validation •Data obtained as a result of primary and secondary research was validated through rigorous triangulation. Data Analysis •The data was scrutinized using MS-Excel and statistical tools, such as Time Series Analysis, etc., to obtain qualitative and quantitative insights about the South East Asia tire market.

Primary Research ❑ ❑

LinkedIn TechSci Internal Database

Secondary Research ❑ ❑ ❑ ❑ ❑ ❑ ❑

Company Websites Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body, Associations, etc.

Paid Sources ❑ ❑

Factiva Hoovers

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Research Methodology

Baseline Methodology: For the study, TechSci Research has gathered information through primary research surveys with leading tire companies operating in South East Asia, and subsequently verified information from major dealers/distributors of automobile tires in the region. We also put through an exhaustive search of credible paid databases such as Businessweek, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudently evaluated all collected information and presented the same in chronological order to depict a meaningful and clear picture of South East Asia tire market. While compiling the data, we have also cross-checked all the collected information from multiple sources and data warehouses, to present the most accurate and precise information of the concerned industry. We create high-quality reports with focus on in-depth primary research, followed by exhaustive secondary research.

Partial List of Primary Research – Company/Distributors Interviewed S. No.

Company/Dealer & Distributor Names

PT Gajah Tunggal TBK

PT Suryaraya Rubberindo Industries

Bridgestone Corporation

Sumitomo Rubber Industries

Deestone Corporation Limited

Toyo Tire & Rubber Company

Hankook Tire Co. Ltd.

The Goodyear Tire & Rubber Company

Continental AG

10.

The Yokohama Rubber Co., Ltd.

11.

YHI INTERNATIONAL LIMITED

Few Sources of Secondary Research S. No.

Secondary Sources

Organisation Internationale des Constructeurs d’Automobiles (OICA))

Annual Reports of Leading Tire Manufacturer

The ASEAN Automotive Federation

World Trade Organization (WTO)

Economic Intelligence Unit (EIU)

IMF & World Bank

ASEANstats

Research Methodology

For the preparation of South East Asia tire market report, bottom up model has been used, which has been later on cross validated by using top down approach. Tire Production TechSci Research has mapped production capacities of almost all tire manufacturing units in South East Asia region, with the help of a series of primary research surveys of all the major tire manufacturing companies in the region, followed by cross validation through secondary sources such as company annual reports and industry associations. TechSci Research has been successful in identifying the production capacities of each tire plant as well as their respective plant locations, establishment dates and type of tires manufactured.

Vehicle Production, Sales & Fleet Size The data points needed for the analysis of South East Asia tire market are the historical, current and forecast figures for vehicle production, sales and fleet size. Data for fleet size has been extracted through various government sources and credible data portals. TechSci Research has maintained a database for vehicle production, sales and fleet size for each vehicle segment (passenger cars, light commercial vehicles, medium & heavy commercial vehicles, two-wheelers and off-the-road vehicles), which is regularly updated through various primary research surveys and secondary sources such as automotive associations and government publications.

Tire Demand OEM Tire Sales OEM tire demand has been calculated by multiplying the average number of tires per vehicle to the total number of vehicle produced. For example, for two-wheeler segment, the average number of tires is considered to be two and for passenger cars, the average number of tires is five. Further, the average number of tires for light commercial vehicles (LCVs), medium & heavy commercial vehicles (M&HCVs) and off-the road (OTR) vehicles have been considered as 5, 7 and 4, respectively.

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Research Methodology

Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on the countryâ&#x20AC;&#x2122;s vehicle fleet size and historical vehicle sales. The replacement demand is therefore extracted by multiplying the vehicle fleet with the replacement tire ratio, which is obtained by conducting a series of surveys with car owners to understand the frequency of tire replacement as it varies for different countries depending upon factors such as road conditions, climate, economic and regulatory policies applicable in a country. The replacement ratio is expressed as a percentage; and is considered to be 100%, if one tire is replaced per vehicle per year. Example for Passenger Car replacement Tire demand calculation: Passenger Replacement Car Fleet X Ratio X Size (in %) (Volume) 1,00,000

10%

No. of Tires

Replacement Tire Demand

40,000 Tires

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique, i.e., multiple rounds of telephonic interviews were conducted with tire companies/dealers in the South East Asia region. The information thus gathered through primary interviews is cross-verified through industry experts and secondary sources such as annual reports and paid databases to generate meaningful results. Total Tire Market OEM Tire Sales

Replacement Tire Sales

Total Tire Market

Forecast For forecasting the numbers, we have used Time Series Analysis along with Regression Analysis, followed by Judgmental Analysis.

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INDUSTRY BRIEF According to TechSci Research report, “South East Asia Tire Market By Vehicle Type, By Demand Category, By Radial vs. Bias, By Rim Size, By Tire Type, By Country, Competition, Forecast & Opportunities, 2014-2024”, tire market across South East Asia is projected to surpass $ 17 billion, by 2024 on account of increasing sales of two-wheelers and passenger cars due to rising per capita and improving living standards of people in South East Asian countries. Moreover, booming infrastructure developments and expanding vehicle fleet are the other major factors that are fuelling demand for tires across the region. Few of the major tire players operating in the region include PT Gajah Tunggal TBK, PT Suryaraya Rubberindo Industries, Bridgestone Corporation, Compagnie Generale

des Establissements Michelin, Sumitomo Rubber Industries, Continental AG, The Goodyear Tire & Rubber Company, Deestone Corporation Limited, Toyo Tire & Rubber Co. Ltd, and The Yokohama Rubber Co., Ltd., among others. These players are focusing on sales and marketing activities, which is anticipated to positively influence the tire industry in South East Asia over the next five years. Browse 5 market data Tables and 88 Figures spread through 114 Pages and an in-depth TOC on "South East Asia Tire Market" Among countries, Indonesia dominated South East Asia tire market with over 44% share in 2018. The country is anticipated to maintain its dominance during forecast period as well on the back of expanding vehicle fleet in the country. On the basis of vehicle type, South East Asia tire market is segmented into passenger car, light commercial vehicle, medium & heavy commercial vehicle, two-wheeler, three-wheeler and OTR. Of all, the two-wheeler and passenger car segments account for over 85% share in the market due to expanding two-wheeler and passenger car fleet backed by rising per capita income and growing number of nuclear families across the region.

“Increasing two-wheeler and passenger car sales and production is pushing demand for tires across the South East Asian region. Moreover, a rising number of automakers are showing inclination towards run-flat tires in OEM segment, which is further expected to positively influence the region’s tire market in the coming years. Additionally, growing demand for trucks and buses would steer growth in the market during the forecast period.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

S A M P L E D ATA - S N A P S H O T South East Asia Tire Market Size, By Value (USD Billion), By Volume (Million Units), 2014-2024F

2014

CAGR 2014-2018

CAGR 2019E-2024F

By Value: xx% By Volume: xx%

2015

2016

2017

2018

2019E

Value (USD Billion)

2020F

2021F

2022F

2023F

2024F

Volume (Million Units)

South East Asia Tire Market Share, By Demand Category, By Volume, 2014-2024F

2014

2015

2016

2017

2018

2019E

2020F

2021F

2022F

2023F

2024F

Replacement 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% OEM

40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Singapore Tire Market Share, By Vehicle Type, By Volume, 2014-2024F

2014

2015

2016

2017

2018

2019E

2020F

2021F

2022F

2023F

2024F

50.00%

LCV

20.00%

M&HCV 15.00%

15.00%

10.00%

OTR

5.00%

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About Us & Disclaimer About Us: TechSci Research is a global market research and consulting company with offices in Canada, India and the UK. TechSci Research provides market research reports in a number of areas to organizations. The company uses innovative business models that focus on improved productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.

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Disclaimer: The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

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