Bolstering production of passenger car vehicles in China and India with the support of local government, on account of increasing population, easy financing options and rising discretionary income are expected to reflect growth in the demand for tires in the major economies of Asia-Pacific region. High aftermarket sales due to increasing replacement demand is further anticipated to boost the tire market in China, India, Japan and other growing economies in the region. China appeared to be the largest market in the region owing to the presence of large automotive vehicle fleet and the presence of huge vehicle production base in the country. Radial tires are expected to dominate the demand over bias tires, as they are highly efficient and long lasting with an ability to carry heavy overload. Abundance of natural rubber and cheaply raw materials such as carbon black and specialty carbon black lead to generation of better profit margins for the manufacturers, thereby, luring the international tire manufacturers to setup production facilities in the growing economies of China, Vietnam, Indonesia and India, etc. and capitalize on opportunities to generate augmented revenues.
According to MarkNtel Advisors’ research report “Asia-Pacific Tire Market Analysis, 2020”, the tire market is projected to grow at a CAGR of around 9% during 2020-25. Increasing activities involving new vehicle launches, vehicle production capacity expansion, mergers, acquisitions and collaborations among automobile OEMs are estimated to reflect growth in demand for tires in the region.
China has witnessed tremendous demand for luxury vehicles and sport utility vehicles during the historic period, followed closely by India and the international manufacturers such as Michelin are focusing on development of high performance tires for original equipment manufacturers such as BMW, Chevrolet, Ferrari and Ford, etc. Apart from this, a lot of tire manufacturers are investing substantially in research and development activities for designing high performance tires for high efficiency and fuel efficiency, thereby, imparting growth in the demand for tires in Asia-Pacific region, China is the house for more than 500 domestic tire manufacturers and Hangzhou Zhongche is the largest of China’s domestic tire manufacturers, similarly, Indian domestic tire market is dominated by MRF, Bridgestone is the among the leading manufacturers in the Japanese and Indonesian tire market and Hankook tires dominate the tire market of South Korea. Despite, the presence of numerous domestic manufacturers serving the regional or local demand, major chunk of the market in these countries is served by the international tire manufacturers due to collaborations of international manufacturers with OEMs and high preference for branded tires in the metropolitan areas across the countries in the region. As a result, domestic manufacturers generate their revenues through sales from the aftermarket or local markets, revealed by MarkNtel Advisors’ research report “Aisa-Pacific Tire Market Analysis, 2020”.
Asia-Pacific Remains the Largest Tire Demand Generating Region in the World
As per MarkNtel Advisors’ study, the major manufacturers of tire in the geography are focusing on expanding vertically in order to deal with a critical challenge of fluctuating prices of raw materials, primarily natural rubber. The prime focus of the competitors is to identify or develop substitutes to natural rubber, for the production of tires. However, a few leading players have been acquiring rubber producing estates in and out of the countries of operation and have incorporated changes in their tire production on the onset of tire labeling standards in Europe. This has helped the manufacturers to adhere to the stringent regulations set by their export markets in Europe to deal with the stringent environmental regulations followed by the European countries.
As of 2019, Asia-Pacific remains the largest supplier of tires to the world. The region houses the production facilities of almost all the leading tire manufacturers across the globe. The leading players in the market involve Bridgestone, Continental AG, Goodyear, Hankook, Michelin, Pirelli, Sumitomo Tires, Kumho Tires, Yokohama and Apollo Tires, etc.
“Asia-Pacific Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and opportunities available for tire providers across the globe. Moreover, the report also encompasses the expert verbatim, key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium and High Commercial Vehicles, Two-Wheelers, Three-Wheelers and OTR)
2. By Demand Category (OEM & Replacement)
3. By Tire Type (Radial and Bias)
4. By Sales Channel (Direct Sales, Online, Channel Partners)
5. By Season (All Season, Winter, Summer)
6. By Rim Size (Up to 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”, 47” and above)
7. By Country (China, India, Japan, South Korea, Indonesia, Thailand, Australia, Vietnam, Singapore, Philippines, Malaysia, Bangladesh, New Zealand and Others)
8. By Company (Continental AG, Bridgestone, Goodyear, Hankook and Yokohama among others)
Key questions answered in the study:
1. What are the current and future trends of the Asia-Pacific Tire Market?
2. How the market has been evolving in terms of vehicle type demand, technology trends and demand category?
3. What is the expert opinion on the future current and future outlook of the Asia-Pacific Tire Market?
4. How the competition has been shaping across various regions followed by competitor’s comparative factorial indexing?
5. What are the key growth drivers, challenges and hotspots coming up in the Asia-Pacific Tire Market across various geographies?
6. What are the margins of stakeholders at various levels of the value chain of Tire Market?