Car tire makers are keen to position themselves in hot new markets, and signs point to Indonesia as an interesting market for replacement car tires. Sales in Indonesia rose by 11% in 2014, compared to 2013.
Which ASEAN markets will follow Indonesia and experience strong growth? And what will this mean for the car tire market in the region?
We've got some thoughts on this based on our retail tracking reports from key cities in Malaysia, Philippines, Thailand and Indonesia, of course.
Across markets - increased competition, lower margins
For starters, we observe across four markets, an increased focus, crowding and variety in the 16-inch car tire segment and others. Seven new players joined the existing 60 brands in 2014, bringing with them more than 400 new model offerings for this particular diameter size alone.
Jasmine Lim, Account Director at GfK Asia, said, "More and more new vehicles “More than 6,000 automotive outlets[i] across the tracked markets are facing the same challenging predicament stemming from this influx of contenders. At the end of the day, the beneficiaries are the consumers in these regions who got to purchase their 16-inch tires for less, since average selling prices fell from US$123 to US$115.”