Based on the latest survey by GfK Asia, the demand for replacement car tyre markets in the major cities of four emerging markets of Southeast Asia saw a surge of 14 percent in demand in the first quarter of this year over the previous quarter. GfK retail tracking of replacement car tyres across bustling cities* in Indonesia, Malaysia, Philippines, and Thailand where vehicle ownership is highest reported some 2,557,600 car tyres being replaced in the first three months of the year.
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Findings from the global leading market research company revealed that growth in the opening quarter of the year was driven predominantly by demand boosts in Bangkok and vicinity as well as Malaysia’s Klang Valley, which registered incremental sales volume of 38 and 16 percent compared to the closing quarter of 2011.
“While the healthy sales performance of replacement car tyre in Malaysia was driven by seasonal demand brought about by the festive Chinese New Year period in January, the sudden sales spike in Thailand was an exceptional occurrence that was a result of the flooding disaster which took place at the end of third quarter last year,” highlighted Ms. Jasmine Lim, Account Director at GfK Asia. “As a result, replacement car tyre sales fell by 26 percent in quarter four last year, but pent up demand drove sales up considerably in the following quarter.”
Judging by all the brands present across all 4 markets, it is apparent that dominance of Japanese tyre brands is being diluted in this region. Comparing first quarter results of this year versus the last, market share of major Japanese tyre makers declined by nearly 3 percent. Nevertheless, they are still holding the lion’s share of about 40 percent across all four countries. On the other hand, performances of local and international brands are on the uptrend with their improving standings.
“Prudent consumers will tend to choose local car tyre brands due to their lower cost, a factor that is especially crucial during the economic recovery phase,” said Ms. Lim. “With the prediction that consumer will continue to exercise caution in their spending in the upcoming months, we anticipate that tyre brands which are best able to offer top value for consumers’ bucks to be the ones who will flourish and grow in 2012.”
GfK reports also showed that the average price of replacement car tyres have remained relatively stable in the last year, increasing by only USD2 per tyre across the four markets.
– Previous quarter comparison: Jan – Mar 2012 VS Oct – Dec 2011
– Cities covered in the countries surveyed:
– Malaysia: Klang Valley
– Indonesia: Jakarta, Bodetabek, Surabaya, Medan, Bandung, Makassar
– Philippines: National Capital Region
– Thailand: Bangkok and vicinity