The Bangladesh Tire Market is projected to grow at a CAGR of 2.4% in the forecast period of 2022-27, cites MarkNtel Advisors in their recent research report. Currently, the tire market in Bangladesh is witnessing significant losses, principally due to insufficient capital investments in the tire & automotive industries. However, it might display a slow growth in the coming years, owing to the increasing import of vehicles & their components in the country, principally from countries like China & India.
The gradually increasing sales of automobiles are due to improving economic conditions & purchasing power of the people, which, in turn, is making a direct influence on the demand for tires in the country, especially the high-performance tires. Besides, mounting awareness about the benefits of timely maintenance of tires & vehicles among vehicle owners is escalating the demand for replacement tires and augmenting the overall market growth.
Moreover, with the swiftly expanding transportation & networking across Bangladesh with the lengths of roads, the number of automobiles is rising significantly and driving the tire market. In the country, tire requirements are fulfilled mainly by Multinational Companies by imports & recycling scrapes, further states the research report, “Bangladesh Tire Market Analysis, 2022.”
Imports & Transportation through Buses & Trucks to Drive the Market during 2022-27
Based on the Type of Vehicle, Buses & trucks are anticipated to display the fastest growth of the Bangladesh Tire Market during the forecast period. It owes principally to the increasing imports of tires from countries like China & India to suffice the requirements of automobiles in Bangladesh, where these imports are taking place in trucks & buses. This way, the demand for tires is increasing for both purposes, viz., the rising number of buses & trucks & imports.
Besides, viewing the demand-supply gap in Bangladesh, several companies are entering the tire market to meet the mounting demand for tires for trucks & buses. Countries like India are actively exporting Trucks & Buses Radial (TBR) Tires in Bangladesh and, in turn, promoting the market growth.
Growing Need for Government Support through Tax Exemptions
The need for government support for the sustainability of the tire industry is swiftly growing. Hence, the government is providing tax exemptions for tire manufacturers & proposing initiatives to adopt Electric Vehicles (EVs) as a step forward in reducing carbon emissions and proliferating the growth of the tire industry. For instance:
According to MarkNtel Advisors, the leading players in the Bangladesh Tire Market are Bridgestone, Goodyear & Dunlop Tyres, Continental, Yokohama, Michelin, Hankook, Toyo, MRF Tyres, JK Tyres, & Apollo Tyres.
Key Questions Answered in the Study