Rising automotive fleet sales would propel the demand for Malaysia tire market - 6Wresearch
Tires improve the overall performance of the vehicles and finds application in all types of vehicles such as passenger cars, motorcycles, heavy and light commercial vehicles and others. Growing demand for vehicles in Malaysia and increasing disposable income of middle-class population are expected to drive the demand for tires in Malaysia over the coming years. Additionally, expanding vehicle sales coupled with rapid development of transportation infrastructure in the country are some of the additional factors which would positively impact the market for tires in Malaysia during the forecast period.
According to 6Wresearch, Malaysia Tire Market revenues are projected to grow at a CAGR of 3.0% during 2019-25. Replacement tire market in Malaysia accounted for majority of the revenue share in 2018 and is expected to continue its dominance during the forecast period as well. The replacement tire market presents huge potential for automotive and tire companies to tap into the market. For instance, Malaysia reported to have the greatest number of replacement passenger car tire brands among the South East Asian countries in the past two years.
According to Rachit Gulati, Senior Research Analyst, Research and Consulting, 6Wresearch, "Malaysia tire market is majorly import driven with few local manufacturers present in the country such as Goodyear, Toyo, Continental and Silverstone, These players are manufacturing tires majorly for the export. Influx of imported Chinese tires in Malaysia is increasing at a very good pace due to lack of anti-dumping laws in the country and reduction of import duty on tires by Malaysian Government from 30% to 5% in 2018.”
"Further, Malaysian population is price sensitive and prefer lower priced Chinese tires instead of local brands which is eating up the profitability of local manufacturers and re-traders," Rachit further added.
According to Gurbani Kaur, Senior Research Analyst, Research and Consulting, 6Wresearch, “Based on vehicle type, passenger car tire accounted for majority of the revenue share in terms of volume in Malaysia tire market in 2018. However, Truck tires were the leading revenue generating segment in the overall Malaysia tire market share in 2018 owing to high prices of the truck tires.
Further, increase in vehicle ownership ratio would lead to growth in demand for light truck vehicle tires in Malaysia during the forecast period. For instance, there were 341 cars for every 1,000 Malaysians as of June 30, 2017.” Gurbani further added.
Some of the major companies in Malaysia tire market include Bridgestone Tyre Sales (Malaysia) Sdn. Bhd, Michelin Malaysia Sdn Bhd, Giti Tire (Malaysia) Sdn. Bhd., Continental Tyre PJ Malaysia Sdn Bhd and others.
“Malaysia Tire Market (2019-2025)” report provides an in-depth analysis with 45 figures and 4 tables covered in more than 80 pages. Malaysia tire market report estimate and forecast the overall Malaysia tire market revenues by origin, types, vehicle types, and end users. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.
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