South Korea Tyre Market to Cross US$5 Billion in 2017
Growing vehicle exports, rising adoption of electric vehicles and government tax exemptions on automobiles to drive tyre sales in South Korea through 2020
According to a recently released TechSci Research report “South Korea Tyre Market Forecast and Opportunities, 2020’’, the tyre market in South Korea is forecast to touch around USD5 billion in 2017. Major drivers for tyre sales in the country include increasing automobile exports coupled with growing demand for tyres by leading OEMs like Hyundai, Renault Samsung, General Motors, etc. Moreover, tax exemptions announced by the government of South Korea on automobile sales is likely to boost automobile sales in the country through 2020. The report reveals that labor union strikes are very prevalent in South Korea, and hence, pose a threat to the country’s automotive industry as well.In 2013, almost every automobile manufacturer in South Korea faced labor strikes at their production units, which resulted in decline in their annual automobile production, thereby affecting tyre sales in the country.
Hankook Tyres, Kumho Tyres and Nexen Tyres are the leading tyre brands in South Korea, and hold significant majority stake in the overall market. Strong tie-ups with leading auto OEMs, huge presence in overseas market through exports, and superior sales network throughout the country are the major reasons for the dominance of these three companies in South Korea. In addition, the government of has Free Trade Agreements with other countries, which makes it easy for the companies to export tyres to their overseas markets. Tremendous increase in the demand for winter tyres designed specifically for use on icy roads is also changing the scenario of tyre market to a large extent.
“Passenger car tyre segment is expected to continue dominating the market in the coming years. Growing demand for electric vehicle sales and rising tyre exports are also expected to drive the market in the coming years”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“South Korea Tyre Market Forecast and Opportunities, 2020” has evaluated the future growth potential of tyre market in South Korea and provides statistics and information on market structure and consumer behavior trends. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in South Korea tyre industry.