Philippines Tyre Market to Surpass USD970 Million by 2020
Booming automotive sector, increasing government support and favorable trade environment to drive Philippines Tyre Market
According to recently released TechSci Research report, “Philippines Tyre Market Forecast and Opportunities, 2020’’, the tyre market in the Philippines is forecast to cross USD970 million by 2020. Major factors propelling growth include increasing concentration of automobile OEMs in the country, rapid infrastructure developments, and favorable trading and policy environment. Region-wise, a major portion of the demand for tyres is expected to stem from the National Capital Region (NCR) of the country due to high levels of urbanization and a large automotive fleet size in the region.
In the Philippines tyre market, passenger car tyre segment is projected to witness the fastest growth during the forecast period due to rapid urbanization and industrialization, rising per capita disposable income levels and growing sales of passenger cars. However, two-wheeler tyre segment would continue to dominate the overall sales of tyres in the country in volume terms. Easy availability of financing schemes makes two wheelers the preferred mode to commute. Consequently, the demand for two-wheeler tyres from both OEM and replacement segments is forecast to rise during 2015-20.
With implementation of the Motor Vehicle Development Plan (MVDP), OEMs are being offered various lucrative incentives, tax and other fiscal benefits to establish automotive manufacturing plants in the country. In order to capitalize on the available opportunities, many major global OEMs such as Toyota, Nissan, Mitsubishi, Kawasaki, Kymco, Suzuki, etc. have established their manufacturing or assembling plants in the Philippines. Increasing concentration of global automobile manufacturers in the country is expected to boost the sales of tyres in the OEM segment over the next five years. Further, rapid infrastructure development programs have increased demand for commercial vehicles and this is expected to significantly augment the demand for commercial vehicle tyres from OEM as well as replacement segments through 2020.
“Domestic demand in the Philippines is mainly met through imports from leading global tyre companies. Excessive dependence on imports due to a poor domestic production scenario and imposition of import duties would raise prices of tyres in the Philippines in the ensuing years. Higher prices of tyres would aid the growth of the Philippines tyre market in value terms during 2015-20.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Philippines Tire Market Forecast and Opportunities, 2020” has evaluated the future growth potential of Philippines tyre market and provides statistics and information on market structure, exports, imports and future prospects. 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 Philippines tyre market.