Malaysia Tyre Market to Post CAGR of Around 9% during 2014-19

 Growing automobile sales, expanding fleet size, favorable government policies and increasing foreign investments in automotive industry drive tyre market in Malaysia

According to recently released TechSci Research report, “Malaysia Tyre Market Forecast and Opportunities, 2019’’, the tyre market in Malaysia is forecast to grow at a CAGR of 9.15%, in value terms, during 2014-19. Some of the key factors driving the market include increase in volume sales of automobiles, expansion in vehicle fleet size, introduction of favorable government policies and rise in foreign investments within the automotive industry in Malaysia.

The passenger car tyre segment dominates the tyre market in Malaysia in terms of volume share, followed by the two-wheeler tyre and commercial vehicle tyre segments. The OTR tyre segment holds miniscule market share of less than 5% in the country’s tyre market. Passenger car tyre segment is anticipated to continue dominating Malaysia tyre market in the future, though its market share is likely to decline marginally over the next five years due to growth in the commercial vehicle tyre segment. Western Malaysia, comprising Kelantan, Pahang, Selangor, Perak and Negeri Sembilan provinces, accounted for around 90% share, in volume terms, in the country’s tyre market in 2013. Eastern Malaysia, comprising Sarawah and Sabah provinces, accounted for the remaining market share of about 10% in the same year.

Continental Tyres, Bridgestone, Goodyear and Michelin are some of the leading players in the tyre market in Malaysia. However, other companies such as Pirelli, Yokohama, Hankook and Sumitomo are expected to give stiff competition to these established players during the forecast period.Malaysia being the third largest rubber manufacturing country worldwide, provides immense growth opportunities to tyre manufacturers, which are planning to establish tyre production facilities in the country.

“With easy availability of rubber and other resources, the market for retread tyre in Malaysia is also expected to register consistent growth in the next five years. Tyre retreading business in Malaysia is dominated by the commercial vehicle tyre segment, with retread tyres being used commonly in trucks and buses. While retreaded tyres are also used in passenger cars and OTR vehicles, tyre retreading involves greater cost benefits in commercial vehicles, thus explaining the dominance of commercial vehicle tyre segment in the country’s retread tyre market.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“Malaysia Tyre Market Forecast and Opportunities, 2019” has evaluated the future growth potential of tyre market in Malaysia and provides statistics and information on market structure, exports and future market growth. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in the tyre market in Malaysia.