GfK: Central Malaysia PCR sales 1.2 million units in 1Q 2013
Increased affluence and the rise of car ownership is creating demand for passenger car tyres in Malaysia’s booming central region. The latest GfK retail audit report shows that sales of passenger car tyres in the high traffic states of Kuala Lumpur and Selangor have been rising consecutively in the last two years, with the first quarter of this year reporting a surge of 14.6 per cent over the same period in 2012.
The findings are also said to reflect a surge in demand lower profile tyres than have been commonly used in Malaysia such as 55, 50, 45, 40, as well as 35 and below aspect ratios. These segments grew 26 per cent in sales volume in the latest quarter; outpacing overall car tyre volume growth of 14.6 per cent. Last year this group of relatively low profile sizes made up 44 per cent of the market and represent some 49 per cent of the total car tyre sales volume now.
The market is also moving towards faster speed ratings. According to GfK researchers, W-rated products represented 11 per cent of sales in the three months of last year and over 12 per cent this year. “Consequently, the ‘T’ medium speed rated tires correspondingly declined from 11 to 9 percent in sales contribution,” highlighted Selinna Chin, managing director for GfK in Malaysia.
Following the rising popularity of lower profile tyres in the Malaysian central region, car tyres with rim diameter of 16 inch have emerged as the highest growth segment this quarter, accounting for nearly 18 percent of total sales volume. This has led to a lowered demand for the more traditional 13 and 14 inch rims which contributed to 32 per cent in total.
GfK findings also reported a steady and gradual increase in the average price of car tyres sold within the central region from an average of US$77 per piece in March 2011 to an average of US$100 by March this year.
“Newly-launched cars are increasingly being fitted with lower profile and higher speed rate performance tyres to meet the demand of users who seek better safety and comfort without having to compromise on performance,” said Chin. “As the number of cars on the road will inevitably continue to grow, this segment’s rising demand will be the driving force behind the healthy performance of the passenger car tyre industry in the coming years,” concluded Chin.