Thailand market dominated by 3 tyre majors – report

According to a report from market research and consulting company TechSci Research, three tyre majors account for more than 70 per cent of tyre sales in Thailand. Bridgestone, Michelin and Goodyear dominate a market that is expected to grow significantly in the next few years and generate revenues up to around US$17 billion by the end of 2018. However the report, titled ‘Thailand Tyre Market Forecast and Opportunities, 2018’, opines that companies such as Yokohama, Sumitomo and Continental tyres are providing these three with “tough competition”.

The report states that Thailand is expected to dominate the tyre and automotive production within the ASEAN region due to government’s various incentive plans, investments by automotive players, availability of raw material and comparatively cheap skilled labour force and professionals in the country. With about 33 million vehicles on roads as of 2012 and rapidly growing sales of new vehicles, Thailand’s replacement tyre market is forecasted to witness notable growth rate when compared with new tyre market over the next five years.

“Thailand is one of the most competitive tyre markets due to the high volumes of natural rubber production, manufacturing facilities along with modern technologies to meet the global standards and support of Thailand government for automotive industry. Moreover, increasing demand for compact and fuel efficient cars along with growth in export of automotive vehicles from Thailand are expected to push tyre sales volume in the country during the forecasted period,” said. Karan Chechi, research director with TechSci Research.