Malaysia a Growth Market for Michelin

Michelin’s Malaysian operation states its local business is growing despite economic turmoil in Malaysia and abroad. The Kuala Lumpur based Business Times newspaper quotes Michelin Malaysia Sdn Bhd managing director Yves Pouliquen as saying the company’s business growth will be driven by continuous marketing activities involving its dealers and customers as well as new product launches.

“We expect 2009 to be difficult for the industry but it will be better than the 2007 level,” he told reporters at a recent media briefing in Kuala Lumpur. “Overall, 2007 was a good year while last year was fantastic for the industry.” Pouliquen also expressed his confidence that the Malaysian tyre market will continue to grow in line with positive signs of an economic recovery.

According to Pouliquen, Malaysia is considered by Michelin to be one of the top three fastest-moving markets in the Asia Pacific region. “Malaysia has been affected like other countries around the world but was less affected due to the healthy banking system,” he said. “The financial sector has not affected by the subprime mortgage crisis in the United States. That is the key.”

The company, which currently holds more than 10 per cent of the Malaysian tyre market, hopes to improve market share through the launch of five new tyre ranges – two passenger car and three commercial vehicle – in 2009. Pouliquen also stated that Michelin Malaysia has doubled spending on advertising and promotion this year to ‘get closer’ to customers and dealers.

Pouliquen also disclosed that Michelin’s market share for mid and upper-range vehicle tyres is more than 25 per cent. “We expect to see growth, especially in the 15-inch tyre range across all market segments.” This particular size tyre, he added, delivers more than half of the company’s revenue in Malaysia.