Press Release

Growing Funding for Establishing EV Manufacturing Units in Southeast Asia to Boost the Two-Wheeler Tire Market

The Southeast Asia Two-Wheeler Tire Market is set to record 6.36% CAGR during 2023-28, cites MarkNtel Advisors in their recent research report. The high demand for scooters & mopeds in Thailand, Vietnam, Indonesia, etc., i.e., leading to the increasing establishment of two-wheeler manufacturing units and, in turn, boosting tire sales. In addition, the region is witnessing growing penetration of electric two-wheelers, which now offer improved range with zero emissions, as well as reduced operational costs. As a large number of individuals are shifting toward electric mobility, several new companies are entering the industry and the existing ones are extending their product portfolio.

Additionally, various government policies and funding international organizations have also been announced in Southeast Asian countries, which would support the growth of the OEM category of both electric & conventional two-wheelers in the coming years. For instance:

• In 2023, the Asian Development Bank venture capital fund signed an agreement to invest USD3 million in Selex Smart Electric Vehicles JSC (Selex), an electric-two wheeler battery pack manufacturer in Vietnam.
• In 2022, Honda Motors completed the expansion of its Lat Krabang plant in Thailand, which produces two-wheelers ranging from 125cc to 250cc, and now, the company would be able to manufacture motorbikes of 400cc-800cc.

Moreover, many two-wheeler manufacturers have also shown keen interest in the Southeast Asian market with the rapidly expanding electric & conventional two-wheeler manufacturing infrastructure. For instance,

• In 2023, TVS announced its association with ION Mobility with an aim to develop an electric two-wheeler manufacturing unit and sales ecosystem in Singapore & other neighboring countries.

Hence, considering these factors, the rapid expansion of two-wheeler fleet is likely in the region, which, consequently, would surge the demand for two-wheeler tires in the coming years, further states the research report, “Southeast Asia Two-Wheeler Tire Market Analysis, 2023.”

Scooters & Mopeds to Remain Dominant in the Southeast Asia Two-Wheeler Tire Market

A large number of Southeast Asians are opting for scooters & mopeds as they offer better fuel economy with ease of mobility in both rural & urban conditions as well as greater storage capacity, owing to which even e-commerce and food & grocery delivery companies are also showing interest in them. With this rapid surge in demand for scooters & mopeds, many companies have established manufacturing units in the region. For instance:

• In 2022, Piaggio opened its two-wheeler manufacturing unit in Chikarang, Indonesia, to produce Vespa scooters.
• In 2022, electric moped manufacturer Thamlev announced moving its manufacturing unit from China to Malaysia.

With the growing inclination toward scooters & mopeds, various manufacturing units are likely to be established in the region, which would help increase the existing fleet size and promote two-wheeler tire sales in the OEM category during 2023-28.

Indonesia to Record Notable Market Growth through 2028

Indonesia is amongst the major markets for two-wheeler tires in Southeast Asia. With the availability of a large two-wheeler fleet as well as high sales for new models, the demand for two-wheeler tires in the country remains on the higher side. The substantial presence of two-wheelers used for both personal mobility & commercial purposes has been contributing notably to the growth of the Indonesia Two-Wheeler Tire Market.

Moreover, the increasing demand for ride-hailing services in Indonesia has instigated companies like GoShare & Gojek to expand their fleet size in the country in order to cater to the transportation requirement of residents. Hence, the expansion of the scooter fleet is further accelerating the demand for two-wheeler tires. In 2021, GoShare added over 250 scooters to its existing fleet to make daily commuting more convenient for Indonesian residents. Therefore, the mounting adoption of scooters by ride-haling companies is set to spur growth in the Indonesia Two-Wheeler Tire Market over the coming years.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Michelin, Maxxis, JK Tyre, Pirelli Tires, Continental Tyres, CEAT, Apollo Tyres, TVS Srichakra, etc.) are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends that have shaped the industry to its current form?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition shaped across various countries, followed by their comparative factorial indexing?
6. How have buying behavior, customer inclination, and expectations from product manufacturers evolved during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?