Press Release Description

Introduction of New Tire Production Plants to Galvanize the Malaysia Tire Market

Malaysia imports rubber as a raw material for tires from countries such as Germany, Japan, China, Thailand, etc. Moreover, the increasing vehicle fleet size coupled with growing road infrastructure is anticipated to intensify the demand for tires in the future. Moreover, the country has a handful number of players in the country such as Bridgestone, Michelin, Hankook, Pirelli, etc.

According to the MarkNtel Advisors research report, Malaysia Tire Market Analysis, 2020”, the country’s tire market is expected to surge at a CAGR of around 4.5% in terms of units sold during 2020-25. The motorization rate of Malaysia is around 439 vehicles per 1000 inhabitants. The replacement tires exhibited a larger market share on account of growing automobiles on the road, the demand for replacement in tires is surging.

Moreover, the passenger vehicle segment sales grew by 49% in September 2019 from 27,018 to 40,266 units, while commercial vehicle segment sold 178 units more, to 4,400 from 4,222 in the same month.

Radial tires Outpaced Bias Tires

Radial tires grabbed the largest market share in the Malaysia tire market in 2019 owing to its properties such as they have flexible sidewalls, reduces fuel consumption and maintains grip on the roads in extreme weather conditions. The adoption of radial tires is less in medium-heavy commercial vehicles and OTR vehicles, thus, bias tires are used in these vehicles. However, the trend is expected to reverse in the forthcoming period.

According to OICA, the passenger car sales were 533,201 in 2018 as compared to around 514,545 units in 2016. This would positively impact the tires sales in the years to come as revealed by MarkNtel Advisors’ in their research report, “Malaysia Tire Market Analysis, 2020”.

According to the MarkNtel Advisors the major leading players in the Malaysia tire market are Michelin, Bridgestone, Continental, Pirelli, Goodyear, Hankook, Toyo, Sumitomo, Giti, Friendship Rubber Industry among others. In 2017, Toyo announced to construct a building in the new plant named Toyo Phase 2 for the expansion of the industry. To magnify the production capacity of 2.4 million tyres to 7.4 million tyres a year. The construction of the building would fully complete in 2020. 

“Malaysia 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 Malaysia Tire market providers across the globe. Moreover, the report also encompasses the key leading players in the industry, along with competitive benchmarking and competition matrix and company profiling.

Industry Segmentation:

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, winter and Summer)
6. By Region (North, South, Central, East, Sabah and Sarawak)
7. By Price Category (Low (Up to USD90), Medium (USD91-USD140), High (Above USD140))
8. 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”)
9. By Company (Michelin, Bridgestone, Continental, Pirelli, Goodyear, Hankook, Toyo, Sumitomo, Giti, Friendship Rubber Industry)

Key questions answered in the study:

1. What are the current and future trends of the Malaysia 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 Malaysia tire market?
6. What are the customer orientation, purchase behavior, and expectations from Malaysia tire suppliers across various regions?