BURNABY, British Columbia, January 20, 2014 /PRNewswire/ --
Growing demand for hybrid cars as a result of government initiatives to drive the tyre market in Malaysia over the next five years
Malaysia's favorable government policies, coupled with political and economic stability, and the presence of well-developed infrastructural facilities, have attracted major international automotive and component manufacturers to invest in the country. As Malaysia is also centrally located in the ASEAN region, the country offers immense opportunities for global automotive players to set up their manufacturing operations. Abundant natural rubber production and the membership of AFTA and ASEAN continue to attract the global tyre companies to establish their production plants in Malaysia.
According to a recently published report by TechSci Research "Malaysia Tyre Market Forecast and Opportunities 2018", the tyre market in Malaysia is expected to grow at a CAGR of around 10%, in revenue terms, during 2013-18. Malaysia's tyre sales have received major contribution from the passenger car segment as the country is the largest market for passenger cars in the ASEAN region. Though Malaysia is the world's third largest producer for natural rubber, the country does not have too many tyre manufacturing plants due to the bilateral trade agreements with Indonesia and Thailand, from where tyres can be imported at very low tariffs.
The automobile production in Malaysia is increasing at a rapid pace and as a result, tyre companies operating in Malaysia are also expanding their business operations. The automobile production in Malaysia is also encouraged by the government of Malaysia through various incentive plans and tax benefits. The hybrid car sales in the country registered a year-on-year growth of around 84% in 2012 and are set to grow further on the back of extended duty exemption, anticipated launch of new models and growing customer acceptance. The tyre market in Malaysia is also witnessing a rapid increase in demand for fuel efficient and eco-friendly tyres.
The report indicates that Goodyear, Continental, Bridgestone and Michelin are the major tyre companies in Malaysia's tyre industry, while Toyo Tyre, Pirelli, and Yokohama are also setting up their businesses and expanding product portfolio to increase their share in the growing tyre market in the country.
"The market for passenger cars is expected to continue dominating tyre market in Malaysia during next five year period, however, the growing agricultural, construction and mining sectors are boosting the demand for OTR tyres in the country. Additionally, the Malaysian government's incentive schemes for automotive manufacturers are also anticipated to drive the growth of automobile production, which would consequently contribute towards propelling the demand for tyres in Malaysia" said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Malaysia Tyre Market Forecast and Opportunities 2018" has evaluated the future growth potential of Malaysia's tyre industry and provides statistics and information on market structure, exports and future growth of the tyre industry. 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 for the tyre industry in Malaysia.
Contacts: Ken Mathews, Email: email@example.com Contact : +1-646-360-1656
SOURCE Techsci Research