Increasing sales of trucks and passenger cars on account of various automotive sector policies such as Comprehensive Automotive Resurgence Strategy (CARS program), Comprehensive Motor Vehicle Development Program and Rising Per Capita Income have propelled the growth of tire industry in Philippines in last few years. In addition to these policies, rising consumer spending and strengthening transportation infrastructure supported by government programs such as "Build, Build, Build" (BBB) Program and rising share of urban population would drive the demand for tires over the next six years.
According to 6Wresearch, Philippines tire market revenues are projected to grow at a CAGR of 13.3% during 2019-25. The vehicle ownership ratio in the country is very low which offers high growth potential for the automotive industry to flourish in the country. Moreover, the consumers are shifting towards green vehicles in place of fuel passenger cars. This would increase the production of green vehicle and eventually would boost the sales of tires during the forecast period.
According to Ravi Bhandari, Manager, 6Wresearch, "The Trucks tire segment accounted for the maximum revenue share in the tire market due to growing logistics sector, developing road infrastructure in the country and government programs such as Public Working Vehicle (PUV) Modernization Program. Additionally, "Build, Build, Build" (BBB) Program would boost the construction activity in the country in near future which would drive the growth of trucks tires in the country during the forecast period."
"Further, the passenger car tire segment is predicted to exhibit highest growth during the forecast period on account of rising per capita income and increasing social normalization of car ownership," Ravi further added.
According to Prashant Bhatia, Research Associate, 6Wresearch, "By types, bias tire acquired major market revenue share in the truck and light truck tire segment owing to lower cost and their ability to tackle rough roads without sacrificing ride comfort. Radial tires would dominate the market in coming years on account of substantial deployment of radial tires among all type of vehicles due to benefits such as higher safety, long-term value, lower life-cycle cost and increasing consumer concerns regarding safety reasons.
"In Philippines, majority of tire brands relies on import to cater the demand of tires due to strict government policies for market entrants coupled with high cost in terms of wages and taxes. Import segment is anticipated to grow at a substantial pace during the forecast period," Prashant concluded.
Some of the major companies in the Philippines tire market includes Michelin, Bridgestone, Giti Tire, Continental AG, Goodyear, Yokohama Rubber, Sumitomo Rubber, MRF, Apollo Tyres, Toyo Tire and Cheng Shin Rubber.
"Philippines Tire Market (2019-2025)" report provides an in-depth analysis in more than 60 figures and 5 tables covered in more than 100 pages. The report estimates and forecast the overall Philippines tire market by vehicle types, tire types, and origin. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.