Passenger Car Tires Market in Malaysia 2015-2019
About Passenger Car Tires
Malaysia is one of the leading rubber producing countries in the world. Its rubber processing industries are flourishing, especially those that manufacture tires and gloves. In 2011, Malaysia had 341 passenger cars per 1,000 people. Thus, Malaysia is one of the most significant markets for tire manufacturers.
The future of passenger car tire market in Malaysia is expected to be positive over the forecast period due to the optimistic outlook for the automotive industry. The tire market in Malaysia is driven by growing demand for automobiles, overall growth of the economy, and growth of the replacement tire market.
Technavio's analysts forecast the passenger car tire market in Malaysia to grow at a CAGR of 4.47% over the period 2014-2019.
Covered in this Report
This report covers the present scenario and the growth prospects of the passenger car tire market in Malaysia for the period 2015–2019. This report provides data on the market based on the following segments:
Technavio Announces the Publication of its Research Report – Passenger Car Tires Market in Malaysia 2015-2019
Technavio recognizes the following companies as the key players in the Passenger Car Tires Market in Malaysia: Bridgestone Tyre Sales (Malaysia), Continental Tyre PJ Malaysia, Goodyear Malaysia, GT Radial Malaysia, Hankook Tire, Kumho Tire, Maxxis International, Michelin Malaysia, Pirelli, Sailun Group, Simex Tyres, Sumitomo, Toyo Tyre Malaysia and Yokohama Rubber
Commenting on the report, an analyst from Technavio’s team said: “Natural rubber prices have been declining since 2011 and were at a five-year low in Tokyo, Shanghai, Indonesia, and Thailand in December 2014. This fall in the prices of synthetic and natural rubber is set to benefit those who use them as raw materials, provided that the demand for the end product does not fall. The chief beneficiaries are tire vendors, such as Bridgestone, MRF, Yokohama, Goodyear, Sumitomo, and Michelin, as they consume about 70% of the global natural rubber production. The profit margins of tire vendors have surged since 2011, the year when the prices started dipping. However, tire vendors are expected to pass these savings onto consumers. The initiation would be with an aim to gaining a larger market share.”
According to the report, a well-selected and maintained tire, in addition to providing greater comfort and ride quality, contributes greatly to the safety of the vehicle occupants, improves fuel economy, and aids better stopping and handling on all road conditions. OEMs buy a standard quantity of tires for installation on new vehicles. The requirement is huge in terms of volume; however, the bulk of the revenue is dependent on the replacement tire market. Passenger cars typically account for the majority share of the total number of vehicles on the road among all the vehicle segments. Being the biggest segment, passenger cars have a considerable impact on sales in the tire market in any economy. In 2014, Malaysia, an advanced middle-income economy, had sales of 588.34 thousand passenger cars, which will now become the new customers for the replacement tire market. In 2015, as a result of the impact of the GST rate, passenger car sales are expected to grow. However, the passenger car market in Malaysia is expected to grow during the forecast period.
Further, the report states that Malaysia was the third largest producer of natural rubber in the world, but with a decline in production it has ended up being ranked lower in terms of natural rubber production.
Bridgestone Tyre Sales (Malaysia), Continental Tyre PJ Malaysia, Goodyear Malaysia, GT Radial Malaysia, Hankook Tire, Kumho Tire, Maxxis International, Michelin Malaysia, Pirelli, Sailun Group, Simex Tyres, Sumitomo, Toyo Tyre Malaysia, Yokohama Rubber