BURNABY, Canada, April 13, 2015 /PRNewswire/ --
Rise in automobile sales, improvement in public infrastructure, and growth in purchasing power to drive tyre sales in Bangladesh over the next five years
According to the recently released TechSci Research report, "Bangladesh Tyre Market Forecast & Opportunities, 2020", tyre market in Bangladesh is forecast to grow at over 9% CAGR until 2020 on the back of growth in automobile sales, ongoing improvements in public infrastructure, and growth-oriented government policies. Government of Bangladesh has laid special emphasis on enhancing the road infrastructure of the country, which has been instrumental in driving vehicle sales in the country. Several global tyre giants have also expressed interest in making significant investments by setting up their manufacturing units in the country.
Two wheeler tyre remains the dominant segment in overall tyre market in Bangladesh as majority of the country's population comes under low income group. The trend is expected to continue over the forecast period as well. In 2014, Dhaka, the capital city of Bangladesh, held significant majority market share, and hence emerged as the leading region in terms of tyre sales throughout the country. Automobile and tyre sales in Bangladesh are expected to grow with rise in purchasing power of people as well as growing investments and joint ventures of foreign market players. The country might become the exporting destination for global tyre manufacturers.
The report also reveals that Bangladesh is among the leading importers of reconditioned cars and majorly imports them from Japan. However, this has led to a scenario wherein new car sales dropped significantly. In order to curb this problem, the government is planning to reduce import duties levied on new cars being imported from other markets.
"Bangladesh largely lacks in tyre manufacturing set ups, which leads to tyre imports from other countries as the only feasible option to cater the growing demand. The company largely imports tyre from China, India, Indonesia, Thailand and Japan. This reflects an opportunity for local companies to set up indigenous manufacturing base in Bangladesh and also enables foreign players to set up their localized production facilities to capture significant market. Increase in local manufacturing units will generate employment as well as help Bangladesh's infrastructure and economy to grow." Said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Bangladesh Tyre Market Forecast & Opportunities, 2020" has evaluated the future growth potential of Bangladesh tyre market and provides statistics and information on market structure, imports and future growth of Bangladesh tyre market. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in Bangladesh tyre industry.
About TechSci Research
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SOURCE TechSci Research