Report: Philippines tyre market to experience double digit growth
The tyre market in the Philippines is forecast to grow at a CAGR of about 13.85 per cent between 2014 and 2019, according to a report published by TechSci. The report suggests the growth will be fuelled by a growing vehicle parc, infrastructure development and growth-focused initiatives taken by the government. While two-wheeler tyres accounted for a majority of the market share in 2013, the NCR region remained the highest contributor in tyre sales due to a large population living in the region and rapid development in industries located in the region.
Bridgestone, Goodyear, Yokohama, Michelin and Toyo tyres are reportedly the leading global tyre manufacturers in the country. Yokohama is the only tyre company in the Philippines to have its own manufacturing unit. Other companies largely import tyres from offshore locations to sell tyres in the country. Due to their low cost and easy availability, Chinese tyre brands are preferred by price sensitive customers in the country.
“Illegal trade of tyres and rising penetration of fake tyres are two key threats to the country’s growing tyre market. Since most of the major companies have lost their confidence in the country’s governance and trade scenario, they are increasingly shifting their production units to other lucrative locations in the ASEAN region including Thailand and Indonesia. Considering these market aspects, government’s MVDP initiative is expected to be a turning point for automotive as well as tyre market in the country,” said Karan Chechi, research director with TechSci Research. cja