Growth of the Passenger Car Tires Market in Thailand Challenged by increased tire retreading
Fast Market Research announces the availability of Technavio's new report "Passenger Car Tires Market in Thailand 2015-2019" on their comprehensive research portal.
Thailand is one of the leading rubber producing countries in the world. Its rubber processing industries are flourishing, especially those that manufacture tires and gloves. In 2011, Thailand Thailand had 74 passenger cars per 1,000 people, indicating enormous potential for passenger car sales. Thus, Thailand is one of the most significant markets for tire manufacturers.
The country's GNI per capita (PPP) increased by 45.05%, from $9,230 in 2005 to $13,430 in 2013. This continuous rise fueled passenger car sales. Furthermore, the country had about 5.41 million passenger cars in use the same year. This translated into growth of associated markets such as the tire market.
The market comprises prominent tire manufacturers, such as Michelin, Pirelli, Bridgestone, Toyo Tire, Yokohama, Goodyear, and Continental Tires; and also established automobile manufacturers, such as Ford, Mazda, General Motors, Honda, Mercedes-Benz, Toyota, and Nissan. While the tire market in general witnessed growth, it was affected by the drastic fall in automobile production and sales during 2014. The primary reasons for the decline included political instability, slow economic growth, and removal of Thai Prime Minister Yingluck Shinawatra. Though passenger car sales are expected to experience a decline in 2015 as well, experts believe that the passenger car market in Thailand is expected to become stable by the end of 2015.
Technavio's analysts forecast the passenger car tire market in Thailand to grow at a CAGR of 4.03% over the period 2014-2019.
Get More Details on this Report and a Full Table of Contents at Passenger Car Tires Market in Thailand 2015-2019
Commenting on the report, an analyst from Technavio’s team said: “The application of bio-oils in tire manufacture is a critical trend observed in this market. Oils are an important raw material used in tire manufacturing and three types of oils are used, namely, paraffinic oils, aromatic oils, and naphthenic oils. An increasing trend has been seen in the tire industry of tire manufacturers using more environmentally friendly raw materials.”
According to the report, the augmented need for replacement of old and damaged tires is a market driver that promotes growth in this market. A well-selected and maintained tire, in addition to providing greater comfort and ride quality, contributes greatly to the safety of the vehicle occupants, improved fuel economy, and better stopping and handling on all road conditions.
Further, the report states that increasing instances of tire retreading is a major challenge faced by this market. Typically, the cost of retreading and remounting the same casing costs around half the price of a new tire. Retread tires provide the twofold benefit of fewer raw materials and less harm to the environment.
The key players in the Passenger Car Tires Market in Thailand are Apollo Tyres Ltd., Continental AG, Cooper Tire & Rubber Co., Deestone Company Ltd., Goodyear (Thailand) Public Company Ltd., Kumho Tire Co. Inc., Maxxis International, Michelin Siam Co. Ltd., Nokian Tyres Plc, Pirelli & C. SpA, PT Gajah Tunggal Tbk. (GT Radial), Sumitomo Rubber (Thailand) Co. Ltd., Thai Bridgestone Company Ltd., Toyo Tire & Rubber Co., Vee Rubber International Co., Ltd., Yokohama Rubber Co. Ltd.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.
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