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Regional tyre makers in Asia show high resilience against foreign competition: Bonafide Research
Jul, 23
2021

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Regional tyre makers in Asia show high resilience against foreign competition: Bonafide Research

 

210659984-Asia-Pacific-Tyre-Market-Outlook-2026

The Asia Pacific as a region is one of the most dynamic regions in the world seeing an incredibly rapid growth rate. As the economies are expanding and the personal incomes with households are growing in the region, vehicle ownership of vehicles growing exponentially. The tyre market is bolstered with the growing automotive sector both in OEM demand and replacement demand. In the research report titled- Asia Pacific Tyre Market Outlook, 2026, Bonafide Research has conducted an extensive study on the current trend, patterns, and dynamics of the tyre market in Europe along with data points and qualitative insights. In order to reach these insights, the market has been segmented and studied on the basis of vehicle types, end-use, design, and sales channels.

As the global automotive industry has strategically focused on the Asia Pacific region for manufacturing and assembly, the region is a major market for driving the OEM demand globally. Following the trend, major American and European tyre companies have also shifted their production facilities to the East. However, these international brands face tremendously high competition from the regional brands that were expanding outwards. In India, companies like Apollo tyres, JK, CEAT, etc. have a stronghold on their market shares and drive the high growth potential tyre market in India. Companies like Michelin, Goodyear, and Bridgestone, etc. find it remarkably difficult to compete with these organizations which have grown with their indigenous expertise.

China on the other hand has big brands such as Roadone, Double Coin, Triangle, Onyx, Sailun Jinyu Group domestically dominate the market. These brands offer tyres at much cheaper prices to the customer as compared to global tyre brands. China is the world’s largest producer and exporter of automobile tyres and plays a crucial role in driving the global tyre market. However, the automotive sector has another hiccup in its growth trajectory. As more and more people are using public transport in China, in a long term, the vehicle sales and registration numbers might go down.

Historically Japan has played a significantly crucial role in representing Asia on the Industrial world map by offering quality at reasonable pricing. Major tyre brands from Japan such as Bridgestone, Toyo Tire and Rubber Co. Ltd., Sumitomo Rubber Industries, The Yokohama Rubber Co. presented a quality standard for the tyre manufacturers globally.

The developing countries are the backbone for driving the tyre market in the region. It is the expanding middle class in smaller and developing economies that are the drivers for the growth of the automotive tyre market in the region. Consequently, this grows the demand for tyres. When people in these strata buy their first vehicle or upgrade to bigger and more efficient vehicles, it generates a recurring demand for tyres in the market as the demand for replacement tyres goes up. These smaller countries also have the potential to become manufacturing powerhouses in the Asia Pacific tyre market due to cheaper labor costs, translating to lower production costs for the tyre manufacturers.

In the research conducted by Bonafide Research, it has been observed that almost 1/3rd of the tyre market is operated by the Rest of the Asia Pacific tyre market other than the major economies like China, Japan, India, and Australia. In this geographical market, the tyre market grew at a CAGR of 5.53% historically including a fall in the market size of roughly 5% due to the disruption caused by the Covid-19. It has been further forecasted that tyre market in this region will be growing at a CAGR of 9.33% during the period of 2021 to 2026.