BURNABY, Canada, May 22, 2014 /PRNewswire/ --
Low motorization rate and increasing automobile exports continue to boost OEM tyre demand
After being hit by global recession and Eurozone crisis, automobile sector in Turkey has been witnessing a growth revival, which is augmenting growth in the Turkish tyre market. Presently, there are 19 major international vehicle producers operating in the Turkish market, including Ford, Toyota, Renault, Fiat, Chrysler, Opel, Honda, Hyundai, Peugeot, MAN, Mercedes, Isuzu and Mitsubishi. These players are operating through joint venture partnerships with domestic companies, direct investment and license agreements.
According to a recently published report by TechSci Research, "Turkey Tyre Market Forecast & Opportunities, 2019", the Turkish tyre market revenues are forecast to grow at a CAGR of around 9% during 2014-19. This growth would be majorly backed up by increasing demand for tyres from passenger car and commercial vehicle segments. Though the growth trajectory, especially for passenger car segment, was hit by adverse internal economic conditions in 2012, which consequently affected the demand for tyres in the country, the passenger car sales witnessed a bounce back in 2013 with a robust double digit growth, which consequently accelerated growth in the Turkish tyre market.
"Motorization rate in Turkey is estimated to be around 173 vehicles per thousand people. This low motorization rate coupled with increasing per capita income of Turkish consumers promises a bright future for the country's automotive sector. Also, being a member of European Customs Union, Turkey also provides seamless access to many neighboring markets along with several benefits such as cancellation of quota limitations and mutual exemption of import and export tariff between Turkey and other European members. Due to these benefits, automotive exports from the country continue to rise. More than three-fourths of passenger cars produced in the country were exported in 2013. This increasing automotive production is eventually contributing to the demand for tyres from the OEM sector in Turkey," said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
Presently, it is being observed that Marmara region in Turkey accounts for a majority of the country's tyre demand. Around one-third of the total tyre sales originate from this region. Istanbul, the most populated province in terms of automobiles in this region, is the main reason behind the dominance of Marmara region in the Turkish tyre market. Other regions with major volume share in automobile sales include Central Anatolia region, Aegean region and Mediterranean region.
"Turkey Tyre Market Forecast & Opportunities, 2019" evaluates future growth potential of the Turkish tyre industry, and provides statistics and information on market structure, import and export scenario, regulatory scenario and competitive landscape of the market. The report is intended to provide cutting-edge market intelligence and help decision makers in taking sound investment decisions. Besides all this, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities currently prevailing in the Turkish tyre industry.
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SOURCE TechSci Research