Vietnam Tire Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Two-Wheelers, Light Commercial Vehicles (LCV), Medium & Heavy Commercial Vehicles (M&HCV)), By Demand Category (OEM, Aftermarket), By Tire Construction Type (Radial, Bias), By Region, By Competition, 2020-2030F

Market Overview:

The Vietnam Tire Market was valued at USD 3.13 Billion in 2024 and is expected to reach USD 4.28 Billion by 2030 with a CAGR of 5.37% during the forecast period. The Vietnam tire market is experiencing significant growth, driven by several key factors. The country's robust automotive manufacturing sector, bolstered by foreign investments from major global automakers like Toyota, Honda, and Ford, has led to increased domestic production and demand for tires. Additionally, Vietnam's strategic position as a leading producer of natural rubber, ranking third globally with an annual output of 1.2–2 million tons, provides a cost-effective advantage in raw material sourcing for tire manufacturers. Government incentives, such as favorable tax rates for foreign enterprises, further enhance the attractiveness of Vietnam as a manufacturing hub.

Technological advancements are also shaping the market dynamics. The rise in electric and smart vehicles has spurred the development of "smart tires" equipped with sensors that monitor tire pressure, temperature, and wear, contributing to enhanced vehicle safety and performance. These innovations align with the growing consumer preference for quality and safety, prompting manufacturers to invest in research and development to meet these demands. Furthermore, the expansion of urban infrastructure and improved road networks have increased vehicle usage, leading to higher demand for replacement tires.

Despite these growth drivers, the Vietnam tire market faces several challenges. Fluctuations in the prices of raw materials, such as rubber, steel, and nylon, pose risks to production costs and profitability. Additionally, intense competition from both domestic and international tire manufacturers, including established global brands, pressures local producers to balance cost and quality. The increasing preference for premium and technologically advanced tires adds complexity to the market landscape, requiring continuous innovation and strategic positioning to maintain competitiveness.

Market Drivers

Rising Vehicle Production

The increasing production of vehicles in Vietnam is a major driver of tire demand. As the automotive industry expands, both passenger cars and commercial vehicles require a constant supply of tires. This growth is largely attributed to the rise in foreign direct investments (FDIs) by global automobile manufacturers, which has enhanced local production capacities. As the demand for vehicles continues to rise, tire manufacturers are positioned to benefit from the growing need for replacement tires, which boosts overall market growth. Moreover, the rise in domestic consumption and export opportunities further strengthens the automotive sector, fostering tire market development. This trend is expected to continue as production volumes grow in tandem with the increasing automotive fleet. The increasing penetration of vehicles in rural areas also adds to the demand for tires, creating new market opportunities. For instance, Vietnam’s domestic car production reached an estimated 388,500 units in 2024, a 27% increase from 2023, according to the General Statistics Office. Approximately 134,500 vehicles were produced during the three-month registration fee reduction from September to November, accounting for one-third of the annual output. December saw a decline to 47,000 units, down from 52,400 units in November, as the fee reduction policy expired and manufacturers adjusted to avoid inventory surplus. By the end of November, domestically assembled vehicle sales hit 159,868 units, reflecting a 1.6% year-on-year increase and comprising 59.5% of total market sales. Looking ahead, domestic production is expected to grow with new factories from Chinese brands like Omoda, Jaecoo, Geely, and Lynk & Co in Thai Binh, Skoda's plant in Quang Ninh with 120,000-unit capacity launching in early 2025, and VinFast’s new electric car factory in Ha Tinh focused on VF 3 and VF 5 models.

Growing Automotive Aftermarket

The automotive aftermarket in Vietnam is flourishing, driven by vehicle owners’ need for tire replacements, upgrades, and maintenance. As vehicles age, tire wear becomes inevitable, and the need for high-quality replacement tires intensifies. This trend is further amplified by the growing number of vehicle owners seeking to enhance performance or fuel efficiency, pushing demand for premium and specialized tires. Consequently, the aftermarket segment has become a key growth driver in the tire industry. With an increasing number of vehicle owners opting for regular maintenance, the demand for replacement tires and related services is poised to grow. Additionally, as vehicles are driven longer distances, the frequency of tire replacement and maintenance needs rises, contributing to sustained aftermarket growth. These factors support the tire industry's ongoing expansion and innovation.

Increasing Consumer Preferences for Quality and Safety

With rising disposable incomes and a more informed consumer base, the demand for high-quality, durable, and safe tires has escalated. Consumers now seek tires that not only provide optimal performance but also guarantee safety under various driving conditions. This shift has prompted manufacturers to focus on technological advancements, such as improved tread patterns, enhanced rubber compounds, and better wear resistance. The emphasis on quality and safety has led to the growth of the high-end tire segment in the market. As safety standards tighten globally, consumers are increasingly inclined to choose tires that meet higher safety ratings and certifications. The growing awareness of the importance of tire maintenance for safety further drives demand for premium and durable tire products. Tire manufacturers are continually investing in R&D to cater to this heightened consumer focus on quality.

Development of Infrastructure and Road Networks

Vietnam’s ongoing efforts to improve and expand its infrastructure, particularly its road networks, play a crucial role in increasing tire demand. Improved road conditions reduce tire wear and increase vehicle usage, encouraging vehicle owners to purchase high-quality tires that can withstand varied terrains. The expansion of urban areas and highways is contributing to the steady increase in vehicle numbers, and consequently, to the demand for tires, both for new vehicles and as replacements. The continuous development of transportation infrastructure not only boosts vehicle ownership but also encourages tire replacements and upgrades. Better roads lead to longer tire lifespans, but the increasing vehicle density raises the frequency of tire replacements, further driving market demand. As transportation networks expand into more remote areas, the need for reliable tires to handle diverse conditions becomes more pronounced.

Technological Advancements in Tire Manufacturing

Tire manufacturers are continuously investing in innovative technologies to improve tire performance and durability. The introduction of smart tires, which are equipped with sensors to monitor pressure, temperature, and wear levels, reflects the increasing focus on technological advancements. These innovations cater to the rising consumer interest in tire safety and performance. As new materials and technologies continue to evolve, they drive the market by offering enhanced products with higher efficiency, longer lifespan, and better fuel economy. The development of advanced tire compounds that improve wear resistance is one of the major trends in the tire industry. Manufacturers are also exploring innovative production processes, such as 3D printing, to reduce manufacturing costs and enhance design flexibility. As technology continues to advance, tire manufacturers are positioned to meet the evolving demands of modern vehicle owners.

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Key Market Challenges

Fluctuating Raw Material Prices

The prices of key raw materials used in tire manufacturing, such as rubber, steel, and synthetic polymers, are highly volatile. These fluctuations often lead to unpredictable production costs, impacting the profitability of tire manufacturers. Price hikes in raw materials can result in higher tire prices for consumers, which may reduce demand, especially in price-sensitive market segments. Managing these cost fluctuations without compromising product quality remains a significant challenge for tire manufacturers. To mitigate this issue, manufacturers are increasingly seeking alternative sources of raw materials or exploring recycling methods. However, these alternatives often come with their own set of challenges, including limited availability or higher production costs. Balancing these fluctuations while maintaining competitive pricing remains a constant hurdle.

Intense Competition

The tire market is highly competitive, with numerous local and international brands vying for market share. Established global brands often dominate the premium segment, while local manufacturers focus on cost-effective offerings. The intense competition between these brands makes it challenging for new entrants to carve out a significant share of the market. To stay competitive, manufacturers must constantly innovate and find ways to differentiate their products in a crowded marketplace, while also managing pricing pressures. Smaller companies face the added challenge of competing with larger players who benefit from economies of scale. Furthermore, the presence of counterfeit and low-quality tire products further intensifies the competition, making it more difficult to maintain market position.

Environmental Concerns and Sustainability

The environmental impact of tire production and disposal is becoming an increasingly important issue for manufacturers. Tires contribute significantly to environmental pollution, both during production (due to emissions) and at the end of their life cycle (due to non-biodegradability). As regulations around sustainability tighten, tire manufacturers face the challenge of adopting more eco-friendly materials and recycling technologies. Balancing environmental concerns with production costs and consumer expectations remains a significant challenge. Many tire manufacturers are exploring alternatives, such as bio-based rubber or tires with improved recyclability, but the implementation of these solutions often requires substantial investment. Consumer demand for sustainable products is rising, but meeting these expectations without significantly increasing costs remains a critical challenge for the industry.

Supply Chain Disruptions

The tire manufacturing industry relies on a complex global supply chain for raw materials and distribution. Disruptions in the supply chain, caused by factors like geopolitical tensions, natural disasters, or logistic bottlenecks, can lead to delays in production and distribution. These disruptions can affect tire availability, especially during peak demand seasons, and lead to increased costs. Manufacturers must develop more resilient and diversified supply chains to mitigate these risks. The COVID-19 pandemic highlighted the vulnerability of global supply chains, causing significant delays and shortages. Tire companies are now more focused on improving their supply chain flexibility and adopting digital tools to predict and manage potential disruptions. Supply chain resilience has become a top priority to ensure uninterrupted tire production and delivery.

Consumer Price Sensitivity

Many consumers in emerging markets, including Vietnam, remain price-sensitive when making purchasing decisions. The rising cost of raw materials, along with innovation and quality improvements, often leads to higher-priced tires, which may deter budget-conscious buyers. This price sensitivity puts pressure on manufacturers to offer affordable alternatives without compromising on quality. As consumer preferences evolve, tire companies must find ways to balance cost, performance, and price to maintain market share. Additionally, consumers are becoming more selective, often opting for tires that provide the best value in terms of durability and performance. As manufacturers continue to innovate, the challenge will be to offer high-performance tires at competitive prices to meet consumer expectations.

Key Market Trends

Shift Towards Smart Tires

The growing interest in smart vehicles has led to the emergence of smart tires equipped with sensors to monitor various parameters such as tire pressure, wear levels, and temperature. These innovations provide real-time data, enhancing vehicle safety and performance. As consumers become more technology-savvy, the demand for such smart solutions is expected to rise, encouraging tire manufacturers to develop new products with enhanced technological features. The integration of smart tires with vehicle diagnostics systems is expected to revolutionize vehicle maintenance, making it easier for car owners to monitor tire health. This trend not only caters to safety-conscious consumers but also appeals to those seeking better fuel efficiency and reduced maintenance costs. Smart tires are poised to become a mainstream offering in the automotive market.

Rise in Electric Vehicle Tire Demand

As electric vehicles (EVs) gain traction worldwide, there is a growing demand for tires specifically designed for EVs. These vehicles require tires with unique features, such as low rolling resistance, to maximize energy efficiency and driving range. Tire manufacturers are responding by developing specialized tires that cater to the specific needs of EVs, such as tires that reduce noise levels and offer better grip on various surfaces. The EV tire market is expected to grow significantly, presenting opportunities for manufacturers to expand their product offerings. EVs often weigh more due to heavy batteries, which means tires designed for these vehicles need to offer enhanced durability. As EV sales continue to rise, demand for specialized EV tires is likely to increase. For instance, Vietnam’s green car market saw a major leap in 2024, with sales of electric and hybrid vehicles reaching 97,000 units—over 22% of total new passenger car sales signaling a robust shift toward sustainable mobility. VinFast led the surge with 87,000 electric cars sold, underscoring strong consumer trust in domestic innovation. Toyota followed with 5,350 hybrid units, while Suzuki and Honda recorded sales of 2,515 and 1,905 hybrid cars, respectively. This momentum aligns with Vietnam’s national goal of carbon neutrality by 2050, supported by government incentives such as a zero percent registration fee for battery electric vehicles until early 2025.

Sustainability and Eco-Friendly Tires

As environmental awareness increases, consumers are placing greater emphasis on eco-friendly products. The demand for sustainable tires is rising, driven by the need to reduce carbon footprints and promote responsible consumption. Manufacturers are responding by developing tires made from renewable materials, such as natural rubber and biodegradable compounds. Additionally, recycling technologies are being improved to extend the life cycle of tires and reduce their environmental impact. This trend reflects the growing importance of sustainability in the tire industry. The demand for tire recycling and retreading services is also increasing, as consumers seek more sustainable options. Eco-friendly tires are becoming a key selling point for manufacturers looking to appeal to environmentally conscious consumers.

Focus on Tire Performance and Safety

Tire performance and safety have become increasingly important to consumers, particularly as vehicle safety standards continue to evolve. There is a growing emphasis on tires that offer better handling, shorter braking distances, and enhanced durability. Manufacturers are investing in research and development to create tires that perform better in a wide range of driving conditions, including wet roads, extreme temperatures, and rugged terrains. The demand for high-performance tires is set to increase, driven by consumer expectations for safer and more reliable products. Tire manufacturers are developing innovative tread designs and rubber compounds to enhance grip and control, especially in challenging driving conditions. As safety features in vehicles evolve, tires will continue to play a critical role in overall vehicle safety performance.

Growth of the Online Tire Market

The online tire market has been expanding rapidly as consumers embrace e-commerce for convenience and cost savings. Online platforms provide consumers with a wide variety of tire options, competitive pricing, and the ability to compare different brands and specifications from the comfort of their homes. The rise of digital platforms has also made it easier for customers to schedule tire installation services. As more consumers shift to online shopping, tire manufacturers and retailers are increasingly focusing on enhancing their digital presence and offering online solutions to capture this growing segment. The growing trend of home delivery and tire fitting services further supports the shift toward online tire sales. Online marketplaces and tire retailers are adapting to the demand for seamless digital experiences to cater to changing consumer preferences.

Segmental Insights

Tire Construction Type Insights

In 2024, the radial tire construction type is expected to dominate the Vietnamese tire market. Radial tires have become the preferred choice for most vehicle segments due to their superior performance characteristics, including enhanced durability, better fuel efficiency, and improved comfort. This type of tire is constructed with steel belts that run radially from the center, which provides better flexibility and resistance to wear compared to bias tires. The benefits of radial tires are particularly noticeable in terms of vehicle handling and stability, making them the preferred option for passenger cars, light trucks, and even commercial vehicles in Vietnam.

The growing automotive sector in Vietnam has further driven the demand for radial tires, as consumers prioritize fuel economy and ride quality. Radial tires provide a smoother ride with less rolling resistance, translating to better fuel efficiency, which aligns with the increasing focus on cost-effectiveness and sustainability in the automotive industry. Additionally, the radial tire’s ability to withstand higher speeds and longer distances without compromising performance has made it a popular choice among vehicle owners.

Another factor contributing to the dominance of radial tires is their superior tread life, which appeals to consumers who seek long-term value from their tire investments. Radial tires typically offer longer wear, reducing the frequency of tire replacements and providing a cost-effective solution for vehicle owners. This aspect is particularly important in a market like Vietnam, where rising disposable incomes and increasing vehicle ownership are pushing consumers toward durable, high-performance options.

In comparison, bias tires, which feature crisscrossed plies and are more rigid, are more commonly used in specialized vehicles and older models. While bias tires tend to be cheaper and provide better load-bearing capacity, they are less efficient in terms of fuel consumption and overall comfort. As a result, radial tires are expected to maintain their dominant position in the Vietnamese market throughout 2024 and beyond, particularly in passenger vehicles and commercial fleets looking for long-lasting, cost-efficient, and high-performance tires.

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Region Insights

In 2024, the northern region of Vietnam is expected to dominate the tire market. The region's prominence is primarily driven by its industrial and automotive growth, alongside the increasing vehicle ownership and demand for both original equipment and replacement tires. Northern Vietnam, particularly Hanoi and its surrounding areas, is a key hub for manufacturing, trade, and transportation, contributing to a significant portion of the country's automotive market. As the economy in the north continues to expand, the demand for tires is projected to increase, driven by both personal vehicle growth and the need for commercial vehicle tires.

The northern region also benefits from its strategic location with proximity to key transportation corridors and ports, making it a major center for logistics and distribution. The rapid urbanization of cities such as Hanoi has led to a rise in the number of vehicles on the road, further propelling tire demand. The region’s well-established infrastructure and transportation networks also support increased mobility, leading to a continuous need for tire replacements and upgrades. Additionally, the growth of the automotive sector in northern Vietnam is also spurred by a rising middle class that is investing in personal vehicles, which drives the demand for high-quality tires.

Furthermore, the northern region hosts a significant portion of Vietnam's commercial fleet, with an emphasis on trucks, buses, and other heavy vehicles. These vehicles require durable and high-performance tires to support the region's extensive distribution and transportation needs. As these commercial sectors grow and the automotive aftermarket expands, the demand for replacement tires continues to strengthen, establishing northern Vietnam as the dominant market for tire sales.

The combination of increased vehicle sales, growth in transportation and logistics, and rising urbanization contributes to the northern region's leadership in the tire market in 2024. With these factors in place, northern Vietnam is set to remain the dominant force in the tire industry, supported by its vital role in the country’s economic landscape and automotive expansion.

Recent Developments

• In 2025, Kolon Industries, a South Korean chemical and textile manufacturer, has announced a $20.5 million investment to expand its tire cord production facility in Vietnam. Scheduled to be operational by January 2027, the expansion will increase the plant's annual capacity from 36,000 to 57,000 tons. To optimize costs, Kolon plans to repurpose equipment from its recently closed Nanjing plant in China. ​
• In 2024, Vietnam emerged as a global hub for car tyre manufacturing, with export turnover of technical rubber products reaching approximately US$4 billion in 2024. Vietnamese manufacturers secured major international contracts and leveraged domestic raw material sources to maintain competitive pricing and high product quality. Tyre orders rose by 10–15% toward the end of the year, while technical rubber product orders surged by 20–30%. In response to global sustainability demands, producers integrated recycled plastics into manufacturing processes, catering to strong demand from Northeast Asian, European, and U.S. markets. Despite the growth, the industry faced challenges linked to plastic waste and the need for advanced, eco-friendly technologies to meet global circular economy standards.
• ​In 2024, Shandong-based tyre manufacturer Haohua commenced production at its new Vietnam facility on October 28, 2024. The plant is equipped to manufacture both passenger car radial (PCR) and truck and bus radial (TBR) tyres, with the first units from both lines already produced. This development underscores Vietnam's growing role in the global tyre manufacturing industry.

Key Market Players

• Bridgestone Corporation
• Betron Vietnam Co., Ltd
• Goodyear Tire & Rubber Company
• Sumitomo Rubber Industries Ltd
• Danang Rubber JSC
• Pirelli & C. S.p.A.
• Yokohama Rubber Company Limited
• Kumho Tire Co. Inc
• BFGoodrich Tyres
• Hankook Tire & Technology Co., Ltd.

Report Scope:

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

·         Vietnam Tire Market, By Vehicle Type:

o    Passenger Car

o    Two-Wheelers

o    Light Commercial Vehicles (LCV)

o    Medium & Heavy Commercial Vehicles (M&HCV)

·         Vietnam Tire Market, By Demand Category:

o    OEM

o    Aftermarket

·         Vietnam Tire Market, By Tire Construction Type:

o    Radial

o    Bias

·         Vietnam Tire Market, By Region:

o    Northern

o    Central

o    Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Tire Market.

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Vietnam Tire Market report with the given market data, Tech Sci Research offers customizations according to the 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).

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