Report Description

Sri Lanka Tire Market is predicted to grow at slower pace in the coming years due to increasing logistic and travel activities in the country.

Sri Lanka Tire Market Overview

A car's suspension and steering system would be incomplete without its tires. While the automobile is driven, tires support vehicles weight as well as the braking and steering forces apply to the road surface. Bead, rim, body plies, inner liner, sidewall, tread, and belts are some of the fundamental parts that make up a tire. For greater performance, tire producers primarily offer two types of tires: radial and bias tires. Bias tires have layers of ply cords that are stacked at an angle to form the tire's carcass, whereas radial tires have ply cords that radiate out from the tire's center. As a result of its soft sidewalls, which again absorb the force of irregularities in the road surface, radial tires also offer additional comfort at higher speeds. Bias tires, on the other hand, have more solid sidewalls and can support more weight. The expansion of Sri Lanka's tire industry has been fueled by the availability of premium natural dry rubber. Additionally, the expansion of the auto industry and rising demand for tire exports are both contributing to the steady growth of the Sri Lankan tire market. Moreover, it is anticipated that as fleet size of vehicle increases, the demand for tires is projected to increase in the coming years.

Availability of Raw Material

Since the first rubber seeds were cultivated on the island around 150 years ago, Sri Lanka, one of the major rubber industries, has been a significant global sourcing location for natural rubber and rubber-based products. Besides that, Sri Lanka has developed a specialty in the sustainable production of high-end medical gloves, robust tires, and sole crepe for shoes for the international market. The local producers use about 70% of the overall production. The potential for additional growth in global rubber production emerges since the demand for natural rubber is greater than the supply. The Rubber Research Institute of Sri Lanka estimates that the island country generated between 74 and 78 thousand metric tonnes (MT) of rubber in 2021 and anticipates achieving its goal of producing 100,000 MT of rubber this year. While demand continues to expand at a steady rate, many important players are boosting their production capacity due to easy availability of raw material. Also, this leads to a rise in demand for Sri Lanka Tire Market in the years to come.

Unstable Government and High Prices of Raw Material

Sri Lanka is dealing with unsustainable debt and a severe balance of payments issue, both of which are weighing on overall growth. The direction of economic consolidation and debt restructuring, as well as the growth projection, are both highly unpredictable. The availability and cost of raw materials may initially fluctuate because of the required macroeconomic adjustments. Additionally, since 60% of the basic materials in a tire are dependent on petrochemicals, the price of crude oil and the cost of products including natural rubber, cause significant price changes. There is a lot of logistics involved, from the plant through the distribution center and merchants. Furthermore, shipping charges have a substantial impact on the overall price a consumer spends for a tire. Moreover, the expansion of the automotive tire aftermarket is hampered by the weight, space, and high transportation costs associated with tires. Overall, the growth of the Sri Lankan tire market is anticipated to slow down in the initial years, due to the several causes mentioned above.

Sri Lanka Tire Market Trend

Advancement in Tire Technology

The demand for smart tires and sustainable tires is dramatically rising as the automotive sector develops significantly. To meet the growing demand, numerous manufacturing companies made investments in tire industry research and development during the year. As a significant tire supplier to the Asia-Pacific area and one of the leading companies in the automotive tire aftermarket, Sri Lanka is continually developing new technologies and investing in R&D for smart tire technology. Many companies such as Michelin with its airless technology in tires, intends to accomplish the objective of a 100% sustainable tire, by 2050. Also, Apollo Tires has developed concept agricultural tires using 75% sustainable materials. Furthermore, Goodyear to produce 70% sustainable tires in 2022 with the help of new technologies.  Moreover, the development of new technologies and the use of electric vehicles are factors expected to enhance the Sri Lanka tire industry in the next years.


Recent Development

In 2022, The IATF 16949 accreditation was given to three of CEAT Kelani Holdings' manufacturing facilities, demonstrating that their products adhere to extraordinarily high-quality standards and supply chain efficiency, making CEAT Sri Lanka the first tire manufacturing group in the country to be eligible for this prominent international certification.

CEAT Kelani Holdings introduced two new store formats for the CEAT brand in Sri Lanka in 2022. Two Shop in Shop (SIS) retail establishments have already been opened by the company in Colombo, and four more are expected to be finished by the end of 2023.

Lanka Ashok Leyland PLC (LAL), a joint venture company of Ashok Leyland India appointed CEAT Kelani Holdings as an Original Equipment Manufacturer (OEM) for a variety of heavy-duty trucks, tippers, and light commercial vehicles assembled in Sri Lanka.

Global Rubber Industries (GRI) completed phase II of its USD 100 million investment to upgrade the production capacity at its specialty tire factory in Sri Lanka, in July 2022. With the expanded production capacity, the company's agriculture tire category should be able to meet the rising demand in the USA, Europe, and Australia markets, producing 60MT per day.

In the Hambantota Port Industrial Zone, south of Sri Lanka, Shandong Haohua Tire has started working on a USD 300 million project. In the initial phase, it is anticipated to produce 7.2 million passenger car tires, 1.8 million truck and bus radials, and more, for the markets in Europe and America.


Download Free Sample Report

Market Opportunities

The rubber products used in Sri Lankan tires are primarily exported to other countries. Growing activity levels across the globe increase the number of vehicles sold for use on public roads, which in turn, boosts the need for tires. The market will experience more growth in the upcoming years due to the development of smart and environmentally friendly tires. Also, the nation expected to get profit from the global switch to electric vehicles, which would raise the industry's market share. Also, the increased adoption of electric vehicles gave manufacturers more chances to expand the range of products they offered. Several businesses are making investments in research that may improve tire properties. Due to the aforementioned causes, manufacturers and suppliers have numerous options to create nationwide distribution networks in order to meet the growing demand in the next years.

Market Segmentation

The Sri Lanka Tire Market is segmented by vehicle type, by demand category, by tire construction type, by tube type and by region. Based on vehicle type, the market is segmented into Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two-Wheeler, Off Road Vehicles. On the basis of demand category, the market is divided into OEM and Aftermarket. Furthermore, based on tire construction type, market is divided into Radial and Bias. In terms of tube type, it is fragmented into Tube and Tubeless. The market analysis also studies the region wise segmentation to devise tire market, divided among Central, Southern, Western, North-Western.

Company Insights

Michelin stated in March 2023 that it would invest USD 300 million in computer-aided design (CAD) for its Canadian operations to advance sustainable transportation and reduce its environmental impact.

The Michelin Unique Puncture-Proof Tire System (UPTIS) is a wheel/tire system that is puncture-proof without compressed air, primarily for automobile cars and light vans.

Apollo Tires to open its advanced tire testing facility near its global R&D headquarters in India, in 2022. The company also revealed the expansion of its new line of truck and bus radial tires in August 2022.

Bridgestone introduced the R192E all-position radial tires for e-buses in May 2022. These tires have a high load capacity and extremely low rolling resistance.

In 2020, Goodyear produced a self-generating design to lengthen tire life and make them more flexible to a variety of circumstances.

Company Profiles

CEAT-Kelani International Tyres Pvt. Limited, Apollo Tyre Ltd., MRF Limited, Cheng Shin Rubber Industry Co. Ltd., Global Rubber Industries Pvt. Ltd., Faga Tyres Private Limited, Bridgestone Corporation, Samson Rubber Industries Pvt Ltd, Kumho Tire Co. Goodyear Tire & Rubber Co. are the key players developing advanced technologies to stay competitive in the market and enhancing their product portfolio in the regions to increase their customer outreach.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2022

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Value in USD Million, Volume in Thousand Units, and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, volume forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

By Vehicle Type

By Demand Category

By Tire Construction Type

By Tube Type

By Region

Region Wise Scope

Central, Southern, Western, North-Western

Key Companies Profiled

CEAT-Kelani International Tyres Pvt. Limited, Apollo Tyre Ltd., MRF Limited, Cheng Shin Rubber Industry Co. Ltd., Global Rubber Industries Pvt. Ltd., Faga Tyres Private Limited, Bridgestone Corporation, Samson Rubber Industries Pvt Ltd, Kumho Tire Co. Goodyear Tire & Rubber Co.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

Report Scope:

In this report, Sri Lanka Tire Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • Sri Lanka Tire Market, By Vehicle Type:
    • Passenger Car
    • Light Commercial Vehicle
    • Medium & Heavy Commercial Vehicle
    • Two-Wheeler
    • Off Road Vehicles
  • Sri Lanka Tire Market, By Demand Category:
    • OEM
    • Aftermarket

            ·      Sri Lanka Tire Market, By Tire Construction Type:

    • Radial
    • Bias

            ·     Sri Lanka Tire Market, By Tube Type:

    • Tube
    • Tubeless
  • Sri Lanka Tire Market, By Region:
    • Central
    • Southern
    • Western
    • North-Western

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Sri Lanka Tire Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.1.1.     Market Forecast

3.1.2.     Key Regions

3.1.3.     Key Segments

4.    Impact of COVID-19 on Sri Lanka Tire Market

4.1.  Impact Assessment Model      

4.1.1.     Key Segments Impacted

4.1.2.     Key Regions Impacted

5.    Voice of Customer Analysis

5.1.  Factors Influencing Purchase Decision

5.2.  Brand Awareness

5.3.  Brand Satisfaction Level

6.    Sri Lanka Tire Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value

6.1.2.     By Volume

6.2.  Market Share & Forecast

6.2.1.     By Vehicle Type Market Share Analysis (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two-Wheeler, Off Road Vehicles)

6.2.2.     By Demand Category Market Share Analysis (OEM, Aftermarket)

6.2.3.     By Tire Construction Type Market Share Analysis (Radial, Bias)

6.2.4.     By Tube Type Market Share Analysis (Tube, Tubeless)

6.2.5.     By Regional Market Share Analysis

6.2.5.1.         Central Market Share Analysis

6.2.5.2.         Southern Market Share Analysis

6.2.5.3.         Western Market Share Analysis

6.2.5.4.         North-Western Market Share Analysis

6.2.6.     By Company Market Share Analysis (By Value, 2022)

6.3.  Sri Lanka Tire Market Mapping & Opportunity Assessment

6.3.1.     By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2.     By Demand Category Market Mapping & Opportunity Assessment

6.3.3.     By Tire Construction Type Market Mapping & Opportunity Assessment

6.3.4.     By Tube Type Market Mapping & Opportunity Assessment

6.3.5.     By Regional Market Mapping & Opportunity Assessment

7.    Sri Lanka Passenger Car Tire Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value

7.1.2.     By Volume

7.2.  Market Share & Forecast

7.2.1.     By Demand Category Market Share Analysis

7.2.2.     By Tire Construction Type Market Share Analysis

7.2.3.     By Tube Type Market Share Analysis

8.    Sri Lanka Light Commercial Vehicle Tire Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value

8.1.2.     By Volume

8.2.  Market Share & Forecast

8.2.1.     By Demand Category Market Share Analysis

8.2.2.     By Tire Construction Type Market Share Analysis

8.2.3.     By Tube Type Market Share Analysis

9.    Sri Lanka Medium & Heavy Commercial Vehicle Tire Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Value

9.1.2.     By Volume

9.2.  Market Share & Forecast

9.2.1.     By Demand Category Market Share Analysis

9.2.2.     By Tire Construction Type Market Share Analysis

9.2.3.     By Tube Type Market Share Analysis

10.  Sri Lanka Two-Wheeler Tire Market Outlook

10.1.              Market Size & Forecast

10.1.1.  By Value

10.1.2.  By Volume

10.2.              Market Share & Forecast

10.2.1.  By Demand Category Market Share Analysis

10.2.2.  By Tire Construction Type Market Share Analysis

10.2.3.  By Tube Type Market Share Analysis

11.  Sri Lanka Off The Road Vehicles Tire Market Outlook

11.1.              Market Size & Forecast

11.1.1.  By Value

11.1.2.  By Volume

11.2.              Market Share & Forecast

11.2.1.  By Demand Category Market Share Analysis

11.2.2.  By Tire Construction Type Market Share Analysis

11.2.3.  By Tube Type Market Share Analysis

12.  Market Dynamics

12.1.              Market Drivers

12.1.1.  Increasing demand for Two Wheelers in the country

12.1.2.  Rising demand for micro mobility

12.2.              Market Challenges

12.2.1.  Advancement in Tire Technology

13.  Market Trends and Developments

14.  SWOT Analysis

14.1.              Strength

14.2.              Weakness

14.3.              Opportunities

14.4.              Threats

15.  Porter’s Five Forces Model

15.1.              Competitive Rivalry

15.2.              Bargaining Power of Buyers

15.3.              Bargaining Power of Suppliers

15.4.              Threat of New Entrants

15.5.              Threat of Substitutes

16.  Competitive Landscape

16.1.              Company Profiles (Up to 10 leading companies)

16.1.1.  CEAT-Kelani International Tyres Pvt. Limited

16.1.1.1.       Company Details

16.1.1.2.      Product & Services

16.1.1.3.      Recent Developments

16.1.1.4.      Key Management Personnel

16.1.2.  Apollo Tyre Ltd.

16.1.2.1.      Company Details

16.1.2.2.      Product & Services

16.1.2.3.      Recent Developments

16.1.2.4.      Key Management Personnel

16.1.3.  MRF Limited

16.1.3.1.      Company Details

16.1.3.2.      Product & Services

16.1.3.3.      Recent Developments

16.1.3.4.      Key Management Personnel

16.1.4.  Cheng Shin Rubber Industry Co. Ltd.

16.1.4.1.      Company Details

16.1.4.2.      Product & Services

16.1.4.3.      Recent Developments

16.1.4.4.      Key Management Personnel

16.1.5.  Global Rubber Industries, Pvt. Ltd.

16.1.5.1.      Company Details

16.1.5.2.      Product & Services

16.1.5.3.      Recent Developments

16.1.5.4.      Key Management Personnel

16.1.6.  Faga Tyres Private Limited

16.1.6.1.      Company Details

16.1.6.2.      Product & Services

16.1.6.3.      Recent Developments

16.1.6.4.      Key Management Personnel

16.1.7.  Bridgestone Corporation

16.1.7.1.      Company Details

16.1.7.2.      Product & Services

16.1.7.3.      Recent Developments

16.1.7.4.      Key Management Personnel

16.1.8.  Samson Rubber Industries (Pvt) Ltd

16.1.8.1.      Company Details

16.1.8.2.      Product & Services

16.1.8.3.      Recent Developments

16.1.8.4.      Key Management Personnel

16.1.9.  Kumho Tire Co.

16.1.9.1.      Company Details

16.1.9.2.      Product & Services

16.1.9.3.      Recent Developments

16.1.9.4.      Key Management Personnel

16.1.10.                Goodyear Tire & Rubber Co.

16.1.10.1.    Company Details

16.1.10.2.    Product & Services

16.1.10.3.    Recent Developments

16.1.10.4.    Key Management Personnel

17.  Strategic Recommendations

17.1.              Key Focus Areas

17.2.              Target Regions

17.3.              Target Vehicle Type

17.4.              Target Tire Construction Type

18.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

down-arrow

Major factor affecting the Tire market in Sri Lanka is the unstable economy. Currently, Sri Lanka faces an unsustainable debt and severe balance of payments crisis, which is having a negative impact on overall growth.

down-arrow

Two-wheeler segment is leading in Sri Lanka tire market by volume and is expected to lead in the forecast period.

down-arrow

The major player contributing Sri Lanka Tire Market are CEAT-Kelani International Tyres Pvt. Limited, Apollo Tyre Ltd., MRF Limited, Cheng Shin Rubber Industry Co. Ltd., Global Rubber Industries, Pvt. Ltd., etc.

down-arrow

The rapid development of sustainable and smart tire, along with increasing demand for electrical vehicle across many regions, is projected to grow the Sri Lanka Tire Market by 2028.

profile

Srishti Verma

Business Consultant
Press Release

Two-Wheeler Segment Continues to Lead the Sri Lanka Tire Market by 2028

May, 2023

Increasing demand for green tires and growing transportation industry are factors driving the growth of Sri Lanka tire market in the forecast period 2024-2028.