Market Definition
The Aftermarket Passenger Car Tire Market comprise only of the tires which are replaced after a certain duration. There are two types of passenger car tire, i.e. radial and bias tires which are deployed in three different kind of passenger cars such as Hatchback, Sedan, and SUV. The rising disposable income of residents & an increase in vehicle ownership rates across the region is the prime factors contributing to the growth of the market. Furthermore, the gradual increase in the adoption of an electric vehicle from consumers would create an opportunity for the players operating in the Asia Aftermarket Passenger Car Tire Market.
Market Insights
The Asia Aftermarket Passenger Car Tire Market is projected to grow at a CAGR of around 4.83% during the forecast period, 2022-27. The Market growth imputes to the growing industrialization & economic progress, rising personal income levels, allowing a substantial portion of the people to own passenger cars, etc. According to the Ministry of Public Security, in 2019, the number of car drivers in China was around 397 million, which is the largest globally. Besides, the increase in the wear & tear rate of the tire, the increasing number of newly registered passenger vehicles, and the surging passenger car ownership rate are some of the key factors expected to enhance the sales of a passenger car.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 4.83% |
| Country Covered | China, India, Japan, South Korea, Indonesia, GCC, Rest of Asia, Others |
| Key Companies Profiled | Bridgestone, Sumitomo Tyre, Michelin, The Goodyear Tire & Rubber Manufacturing Company, Hankook Tire, Continental, Apollo TyresbLimited, Pirelli MRF Ltd., Others |
| Unit Denominations | USD Million/Billion |
Hence, this would further augment the demand for aftermarket tires in the region. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the sales of passenger cars in China increased to 21,481,537 units in 2021 from 21,472,091 units in 2019. Furthermore, the introduction of various norms by the government to reduce the carbon emission from the transport sector has infused significant investment toward electric vehicle manufacturing.
Additionally, the rising government inclination to encourage the consumers to shift to EVs by providing incentives for EV purchase, the launch of a new electric vehicle by the market players & burgeoning sales of electric passenger cars are some of the prime factors expected to propel the growth of aftermarket passenger car tire in the region during 2022-2027.
Key Trends in the Market
Smart tires have been one of the latest trends in the passenger car tire market due to the integration of TREEL sensors & Tire Pressure Monitoring System (TPMS), which enhances the performance of the tires by sensing the road condition. Tires provide real-time information about the road temperature, tire pressure, traction, and vehicle acceleration to their users when contacted on the road, thus increasing the demand for tires. Various companies such as Goodyear, Pirelli, JK Tires, Michelin, etc., have been developing these tires for integration into passenger cars. Thus, the integration of these tires in the OEM passenger car would generate the demand for aftermarket tire sales during the forecasted period. For instance:
Impact of COVID-19 on the Asia Aftermarket Passenger Car Tire Market
In 2020, the COVID-19 pandemic severely impacted the economies of Asian countries such as China, India, Indonesia, Malaysia, etc. As of late March 2020, imports & exports were disrupted due to the imposition of lockdown in the countries. In the aftermath of COVID-19, many countries were unable to access their ports due to fears of the virus spreading. Thus with the cessation of economic activities in the second & third quarters of 2020, the replacement demand for passenger car tires decreased, owing to the reduction in mobile movement of the passenger cars in the region. Further, offices, airports, railway stations, tourist places, and others were closed, leading to a decrease in ‘vehicles miles traveled’ by the passenger car. This led to a decline in the demand for passenger car tire replacements.
However, in the longer run, the Asia passenger car aftermarket tire would suffer the minimal impact from COVID-19, as the manufacturing industries of the tire began their operations after the removal of COVID-19 restrictions. In addition, the mobility of the citizens also increased gradually from the end of 2020, which increased the use of passenger cars leading to the wear & tear of tires. In addition, Asian countries such as India, China, Australia, etc., have experienced robust increases in the sales of passenger cars, which is likely to contribute to a surge in demand for aftermarket passenger car tires.
