Thailand is home to around 27 manufacturing units of tires. The country has emerged as a tire manufacturing hub in South East Asia. The major factor enabling such a magnanimous transformation of the Thailand tire industry is the ease of raw material. Simultaneously, its proximity to China has also resulted in a spillover effect of investments in the automobile manufacturing industry. Hence, it is anticipated to strongly contribute to the growth of Thailand tire market in the forthcoming period.
According to the MarkNtel Advisors’ research report, “Thailand Tire Market Analysis, 2020”, the tire market is projected to grow at a CAGR of around 3% in terms of unit sold during 2020-25. Due to the country’s location, imports and exports of tires are magnifying. The total imports of tires in Thailand were about USD 455 million in 2018. The country imported around 28% from China, 12% from Japan, 9% from Malaysia, and 11% from India.
Increasing automobile production is boosting the demand for tires. In 2018, the automobile production stood at around 2 million from around 1.8 million in 2014. Moreover, the increasing initiatives by the government for surging the growth of the electric vehicle market are projected to boost the demand for tires in the country. In March 2017, the government approved investment incentives that exempted the manufacturers of electrified vehicles (including hybrids (HVs), plug-in hybrids (PHVs) and EVs) from corporate income taxes for a certain period. Toyota, Nissan, Honda, Mazda, and Suzuki already applied for HV incentives.
Growing Inclination of Individuals for Passenger Cars
In 2018, the country was ranked first among the ASEAN countries in terms of domestic production of automobiles. The light commercial vehicle segment leads the market owing to the rising construction activity and intensifying tourism sector in recent years. However, there has been an induced demand for passenger cars thereby boosting the requirement for tires. The production of passenger cars increased from 818,440 in 2017 to 877,015 in 2018 with an increase of 7.2%.
The dealer and distributors are the most common and preferred channels for sales and purchase of tires in Thailand. While online sales are still in infancy. With the improvement in internet connectivity, online sales have been picking up from the urban areas. The e-commerce portals such as Tyrepac, Tyrepluss, Monotaro, etc., offers tires through the online mediums in the country. Hence, the sales trend is expected to register a gradual and slow momentum during the forecast period, revealed by MarkNtel Advisors’ in their research report, “Thailand Tire Market Analysis, 2020”.
According to the MarkNtel Advisors the key players who has grabbed a considerable market share in the Thailand tire market include Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Kumho, Pirelli, Toyo and Cooper, etc. In 2019, Apollo tyres launched its first truck tire centre for commercial fleets in the country. The Apollo Truck Tyre Zone (ATTZ) is located in HatYai district in Songkhla province in Thailand with TEN Auto Tyres. The tire manufacturer claims that ATTZ is equipped with modern tools and one-stop solution services.
“Thailand Tire Market Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the industry potential, key factors such as trends, drivers, hotspots and opportunities and challenges available for Tire providers in Thailand. Moreover, the report also encompasses the key leading players in the industry, along with competitive benchmarking and competition matrix and company profiling.
1. By Type of Vehicles (Passenger Car, Light Commercial Vehicle, Buses and Trucks, Medium and Heavy Commercial Vehicles, Off the Road (OTR), Two Wheelers, Three Wheeler)
2. By Demand Category (OEM and Replacement)
3. By Type of Tires (Radial and Bias)
4. By Sales Channel (Dealer/Exclusive stores, Online and Others)
5. By Season (All season, and Summer)
6. By Price Category (Low, Medium, High)
7. By Rim Diameter (Upto 12”, 12.1” to 15”, 15.1.” to 18”, 18.1” to 20”, 20.1” to 22.5”, 22.6” to 26”, 26.1” to 35”, 35.1” to 47”, Above 47”)
8. By Region (Mid-west, West, South, North-East)
9. By Company (Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Sumitomo, Pirelli, Deestone, Toyo)
Key questions answered in the study:
1. What are the current and future trends of the Thailand tire market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the country?
4. How the competition has been shaping across the countries followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Thailand tire market?
6. What are the customer orientation, purchase behavior, and expectations from Thailand tire suppliers across various regions?