Market Research Report

Asia Aftermarket Passenger Car Tire Market Research Report: Forecast (2022-27)

By Vehicle Type (Hatchback, Sedan, SUV), By Tire Type (Radial, Bias), By Season (Summer, Winter, All Season), By Rim Size (Up to 12”, 12.1” to 15”, Above 15.1”), By Price C...ategory (Budget Economy, Premium), By Sales Channel (Olin, Exclusive Outlets Multi-Brand Outlets), By Country (China, India, Japan, South Korea, Indonesia, GCC, Rest of Asia) By Competitors (Bridgestone, Sumitomo Tyre, Michelin, The Goodyear Tire & Rubber Manufacturing Company, Hankook Tire, Continental, Apollo TyresbLimited, Pirelli MRF Ltd., Others) Read more

  • Tire
  • Jun 2022
  • 253
  • TR10256

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

  • Launch of Smart Tires in the Asian Market Increases the Performance of the Passenger Cars

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:

  • In 2022, Sumitomo Rubber Industries (SRI) announced to launch first EV-specific tires in China. This would be the smart tire, inbuilt with the latest sensors to focus on the areas of energy efficiency & noise reduction.

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.


Asia Aftermarket Passenger Car Tire Market Research Report: Forecast (2022-27)

Market Segmentation

Based on the Tire Type:

  • Radial
  • Bias

Here, the radial tires captured a dominating share in the Asia Aftermarket Passenger Car Tire market during 2017-21 & the trend is projected to continue in the forthcoming period, owing to the surging radicalization of cars in the country's tire industry. Besides, the enhanced features of the tire, such as low rolling resistance, large bearing capacity, high elasticity, and strong buffer force, make it more appealing to the consumer.

The growing adoption of new energy vehicles by the countries to tackle the rising issue of CO2 emission from the transport industry is further expected to fuel the market growth. Moreover, with the growing number of registered electric cars in the region, the demand for aftermarket radial tires is expected to grow at a robust rate in the forthcoming years.

Based on the Price Category:

  • Budget
  • Economy
  • Premium

Among them, the Economy Price Category held a considerable share in the Asia Aftermarket Passenger Car Tire market during the historical period, as the majority of the population in Asia is middle-class & budget-conscious. Therefore, they prefer tires with longer lives that are fuel-efficient & have moderate pricing. On the other hand, demand for budget tires is expected to fall slightly as a result of rising government initiatives in various countries, including India, Thailand, and South Korea, to boost domestic tire production & reduce imports of Chinese tires, which primarily include budget tires. Therefore, owing to these factors, the economy tires would lead the market growth in Asia during the forecast period, 2022-27.

Based on the Sales Channel:

  • Online
  • Exclusive Outlets
  • Multi-brand

Of them all, the Multi-brand Stores held a notable share in the Asia Aftermarket Passenger Car Tire market during 2017-2021 as multi-brand stores offer numerous choices for the customer to choose a particular brand in a specific size from a wide variety of tires. Moreover, the multi-brand tire sales have been supported by various factors such as ease for the tire companies to sell their products without getting involved in hefty investments to cover the vast population spread in different geographical locations across the region.

Further, the multi-brand store would be holding a substantial market share during 2022-2027 due to the inclination of customers to get multiple options under one roof as well as ease of replacing their tires without hassle.

Regional Landscape:

Geographically, the Asia Aftermarket Passenger Car Tire Market expands across:

  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • GCC
  • Rest of Asia

Of all the countries, China witnessed robust growth in recent years, owing to the rising demand for passenger cars, which led manufacturers to enhance the production of vehicles, thereby developing the tire market significantly. Consequently, the growing sales of passenger cars positively influence the passenger car tire aftermarket. As per the Ministry of Industry and Information Technology, in 2020, around 25 million vehicles were sold in China, including 19.99 million passenger car vehicles.

Considering this extensive fleet of passenger cars in the country & the growth of automobile ownership per capita with increasing average miles would be crucial to driving the passenger car tire aftermarket. In addition, customers are becoming more aware of periodic maintenance, safety, affordability, and durability, which in turn shifts their preference toward low-rolling resistance tires, which dictate the demand for aftermarket tires in passenger cars.

Recent Development by Leading Companies:

  • In 2022, CEAT launched a new color tread wear indicator tires for cars, available in two different sizes, including 205/65 R15 Milaze X3 for the Toyota, Innova & 205/65 R16 Milaze X3 for the Innova Crysta. This new technology of tires is anticipated to help customers’ safety by alerting the user when it’s time to change tires.
  • In 2020, Giti revamped its digital offerings, including a new global website, expanded B2B ordering platform, E-racing, and advanced mobile solutions for employees, dealers, and end-users.

Market Dynamics

Key Driver: Surging Demand for Used Cars Boosts the Requirement for Aftermarket Passenger Car Tire

The countries in the Asian region, such as China, India, and Australia, have seen a significant increase in the sale of used cars during the historical period. The rising cost of new cars & customers' desire for imported luxury vehicles have fueled the region's used car market's growth. Furthermore, depending on the depreciation & condition of the car, used cars are generally offered to customers at much lower prices. Hence, the condition of the pre-installed tires, which need to be replaced by the supplier or owner, determines the need for aftermarket tires. For instance:

  • According to statistics from the China Automobile Dealers Association (CADA), more than 17.58 million used cars were sold in China in 2021, which grew by approximately 22.62% from last year.

In addition, countries with the least car manufacturing companies, such as Bangladesh, New Zealand, Singapore, the Philippines, etc., have been the major importer of used cars from Japan & China. Hence, the expansion of the used cars market in Asian countries has led to the rise in demand for aftermarket tires in both exporting & importing countries.

Possible Restraint: Rising Complexities Among the OEMs for Manufacturing Tires to Hinder the Market Growth

In comparison to a conventional engine car, electric vehicles (EVs), and autonomous vehicles (AVs) have batteries that place a significant load & additional strain on the tire. As a result, the tire manufacturer needs to adjust the tire design to optimize load-bearing capability & handle the electric vehicle's instant torque. Further, the design of the tire must be changed to maintain low rolling resistance & increase the vehicle's fuel efficiency.

Furthermore, different sensors must be fitted to the tires of EVs & AVs to cater to moment-by-moment judgments. Thus, these factors created a challenge for the aftermarket tire industry, as manufacturing companies have not been able to completely cope with emerging trends in passenger car tires from various companies.

Market Opportunity: Rising Sales of Electric Cars Generate the Demand for Aftermarket Tire

The rising depletion of fossil fuel reserves at a considerable rate & the burgeoning growth of carbon emission has forced the consumers to incline toward the adoption of electric cars. This led to an increase in government initiatives of the Asian countries to launch certain policies to help reduce carbon emissions. For instance, in 2020, the Singapore government announced to phase out its all-internal combustion engines of automobiles & replace all of them with cleaner energy vehicles by 2040. Hence, the demand for electric passenger car aftermarket tires would create substantial growth opportunities for the Asia Aftermarket Passenger Car Tire market in the forthcoming years. 

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size - By Value & Units Sold, Forecast Numbers, Segmentation, Shares) of the Asia Aftermarket Passenger Car Tire Market?
  2. What is the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Asia Aftermarket Passenger Car Tire Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Asia Aftermarket Passenger Car Tire Market based on the competitive landscape?
  5. What are the key results derived from surveys conducted during the Asia Aftermarket Passenger Car Tire Market study?

Frequently Asked Questions

   A. The Asia Aftermarket Passenger Car Tire Market is anticipated to grow at a CAGR of 4.83% during 2022-2027.

   A. Sales Channels are anticipated to emerge as an area of remunerative opportunities for the leading players in the Asia Aftermarket Passenger Car Tire Market during 2022-27

   A. Rising sales of electric vehicles in the region are expected to create new business horizons for the Asia Aftermarket Passenger Car Tire Market in the coming years.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Market Segmentation
    4. Assumptions
  2. Executive Summary
  3. Impact of COVID-19 on Asia Aftermarket Passenger Car Tire Market
  4. Asia Aftermarket Passenger Car Tire Market Import Customs Duty & Certifications
  5. Asia Aftermarket Passenger Car Tire Market Trends & Insights
  6. Asia Aftermarket Passenger Car Tire Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. Asia Aftermarket Passenger Car Tire Market Hotspot & Opportunities
  8. Asia Aftermarket Passenger Car Tire Market Value Chain Analysis
    1. Key Stakeholders in Value Chain
    2. Margin at Various Levels
  9. Asia Aftermarket Passenger Car Tire Market Import & Export Statistics
  10. Asia Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
        1. Hatchback
        2. Sedan
        3. SUV
      2. By Tire Type
        1. Radial
        2. Bias
      3. By Rim Size
        1. Up to 12”
        2. 12.1” to 15”
        3. 15.1” to 18”
      4. By Price Category
        1. Budget
        2. Economy
        3. Premium
      5. By Sales Channel
        1. Online
        2. Exclusive Outlets
        3. Multi Brand Outlets
      6. By Season
        1. Summer
        2. Winter
        3. All-Season
      7. By Country
        1. China
        2. India
        3. Japan
        4. South Korea
        5. Indonesia
        6. GCC
        7. Rest of Asia
      8. By Company
        1. Competition Characteristics
        2. Volume Shares
  11. China Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Rim Size
      4. By Price Category
      5. By Sales Channel
      6. By Season
  12. India Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Rim Size
      4. By Price Category
      5. By Sales Channel
      6. By Season
  13. Japan Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Rim Size
      4. By Price Category
      5. By Sales Channel
      6. By Season
  14. South Korea Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Rim Size
      4. By Price Category
      5. By Sales Channel
      6. By Season
  15. Indonesia Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Rim Size
      4. By Price Category
      5. By Sales Channel
      6. By Season
  16. GCC Aftermarket Passenger Car Tire Market Outlook, 2017-2027
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Million Units)
    2. Market Share & Analysis
      1. By Vehicle Type
      2. By Tire Type
      3. By Rim Size
      4. By Price Category
      5. By Sales Channel
      6. By Season
  17. Asia Aftermarket Passenger Car Tire Market Key Strategic Imperatives for Success & Growth
  18. Competition Outlook
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Research & Development
      4. Strategic Alliances
      5. Strategic Initiatives
    2. Company Profiles of Top Companies (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Bridgestone
      2. Sumitomo Tyre
      3. Michelin
      4. The Goodyear Tire & Rubber Manufacturing Company
      5. Hankook Tire
      6. Continental
      7. Apollo Tyres Limited
      8. Pirelli
      9. MRF Ltd.
      10. Others
  19.  Disclaimer


Asia Aftermarket Passenger Car Tire Market  Segmentation