Malaysian Tyre Market Growth Expected In 2016
The tyre market in Malaysia is forecast to witness a moderate growth during 2015-20. Backed by rising sales of automobiles, expanding automobile fleet and favorable government policies, tyre market in Malaysia continues to witness modest growth over the next five years. Increasing sales of vehicles, rising purchasing power of consumers and increasing number of OEMs are the major factors dominating growth in the country’s tyre market. The tyre market in the country is dominated by passenger car tyre segment, followed by two-wheeler tyre segment, which cumulatively captured a market share of about 90% in the country’s tyre demand in 2014.
Continental, Toyo Tires, Goodyear, Friendship Rubber Industry, Michelin, Bridgestone, Yokohama and Hankook are few of the leading tyre companies operating in the country. Major automotive OEMs such as Mercedes-Benz, Toyota, Honda, Suzuki, Nissan, Peugeot, Volvo, BMW, Ford, Renault, Hino, Land Rover, Mazda, etc., have established their manufacturing plants in Malaysia to address domestic and export demand for automobiles in neighboring countries, thereby driving huge demand for automotive tyres in the country.
“Malaysia’s tyre market is dominated by the replacement tyre segment, which accounts for more than 70% of total tyre demand in the country. However, the country’s OEM segment is expected to grow at a faster pace compared to OEM segment tyre during the forecast period.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.