Tire Market in Sri Lanka to Grow at 12% CAGR
Increasing
automotive sales, easy availability of loans at cheaper interest rates and
reduced import duty on tires to drive Sri Lanka tire market through 2021
According to TechSci Research report, “Sri Lanka Tire Market Forecast &
Opportunities, 2021”, tire market in Sri Lanka is forecast to grow at a
CAGR of 12.59%, during 2016-2021. Growth in the market is anticipated on
account of rising two-wheeler and three wheeler demand, expanding automobile
fleet and favourable fiscal policies. Moreover, backed by stable business environment, sound economic
conditions, availability of loans at low interest rates and increasing
motorization rate in the country, the automotive industry in Sri Lanka is
anticipated to grow over next five years, which in turn, is expected to boost
demand for tires in the country through 2021.
In 2014, tire
exports from Sri Lanka were around three times the imports. A major share in
the country’s overall tire exports, was accounted for by OTR tires, followed by
commercial vehicle tires, passenger car tires and two-wheeler tires. Whereas, commercial
vehicle tires garnered a major share in the overall tire imports, followed by
passenger car tires, OTR and two-wheeler tires.
Two-Wheeler
tire segment accounted for the largest share in overall Sri Lanka tire market, in
comparison with other tire segments, and the market is anticipated to grow further
due to rapidly increasing two-wheeler fleet from 2.10 million units in 2010 to
3.36 million units in 2015, exhibiting 9.86% CAGR during 2010-2015. In 2015, motorcycle
tires dominated the two wheeler tire market in the country, however, on account
of increasing popularity of mopeds among consumers, the market share of
motorcycles tires in Sri Lanka two wheeler market is projected to decline by
2021. CEAT
Kelani tires, Global Rubber Industries (GRI) Tires and Faga Tires are few of
the major domestic tire manufacturers operating in the Sri Lanka tire market;
while a few global brands operating in the country are Goodyear, Bridgestone,
MRF Tires, Apollo, etc.
“Sri Lanka’s tire
market is a totally replacement driven market due to absence of OEMs in the
country. However, Volkswagen has established an assembly plant in the country
in August 2014 and plans to establish a local production facility in the
country in coming years. This is expected to boost tire sales in the country
with rising demand for tires from both OEMs and replacement segment.” said Mr.
Karan Chechi, Research Director with TechSci Research, a research based global
management consulting firm monitoring Tire markets in 80 countries.
“Sri
Lanka Tire Market Forecast & Opportunities, 2021” has evaluated the future
growth potential of Sri Lanka tire market and provides statistics and
information on market structure, imports and trends of Sri Lanka tire market.
The report intends to provide cutting-edge market intelligence and help
decision makers to take sound investment evaluation. Besides, the report also
identifies and analyzes emerging trends along with essential drivers,
challenges and opportunities available in Sri Lanka tire market.