Passenger Car Tires Market in South Korea 2015-2019
About Passenger Car Tires
South Korea is one of the leading automobile manufacturing countries in the world. Thus, South Korea is one of the most significant markets for tire manufacturers.
In 2011, South Korea had 284 passenger cars per 1,000 people and a total road network of 105,931 Km. The country's GNI per capita (PPP) increased by 39.16%, from $24,030 in 2005 to $33,440 in 2013. This was one of the factors that led to rise in sales of passenger cars.
The future of passenger car tire market in South Korea is expected to be positive over the forecast period due to the optimistic outlook for the automotive industry. The tire market in South Korea 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 South Korea to grow at a CAGR of 3.78% over the period 2014-2019.
Covered in this Report
In this report, Technavio covers the present scenario and growth prospects of the passenger car tire market in South Korea 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 South Korea 2015-2019
Technavio recognizes the following companies as the key players in the Passenger Car Tires Market in South Korea: Bridgestone Tire, Continental Tire, Goodyear Korea, Hankook Tire, Kumho Tire, Michelin, Nexen Tire, Pirelli and Yokohama Tire
Commenting on the report, an analyst from Technavio’s team said: “The global demand for natural rubber plunged due to the slowdown in the global economy and the euro crisis, leading to a fall in prices. The demand for natural rubber is further weakened with the fall in prices of crude oil, the key raw material for synthetic rubber, which is a substitute for natural rubber. The fall in synthetic rubber prices and the growth in global production of natural rubber lead to surplus, leading to further declines in natural rubber prices. This fall in the price 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, without doubt, are tire vendors, such as Bridgestone, MRF, Ceat, Goodyear, Sumitomo, and Michelin, as they consume about 70 percent of the global natural rubber production. The profit margins of the tire vendors have surged since 2011 when prices started dipping. However, tire vendors are expected to pass these savings on to their consumers.”
According to the report, despite the supply of crude oil being much higher than demand, OPEC, the world's largest oil cartel, has not cut production, which led to a rapid fall in oil prices. Crude oil prices have tumbled as low as $50 per barrel. Currently, fuel prices are at their lowest in years. This fall in fuel prices has led to an increase in on-road and off-road driving. With an increase in the miles being driven, passenger car tires, which have an average service life of 30,000 miles in South Korea, are expected to wear out sooner, therefore, leading to a steady need for replacement tires. With higher demand for replacements, the growth rate of the market in South Korea is likely to rise.
Further, the report states that the introduction of unique tire sizes by automobile manufacturers hinders the growth for the replacement tire market.
Bridgestone Tire, Continental Tire, Goodyear Korea, Hankook Tire, Kumho Tire, Michelin, Nexen Tire, Pirelli, Yokohama Tire