According to “Malaysia Tyre Market Forecast & Opportunities, 2020”, replacement tyre market in Malaysia accounted for around 73% market share in 2014, and this trend is anticipated to continue through 2020.
Major factors driving growth in Malaysia tyre market include increasing vehicle sales and expanding automobile fleet in the country. The tyre market in the country is dominated by passenger car tyre segment, followed by two-wheeler tyre segment, which cumulatively captured a market share of about 90% in the country’s tyre demand in 2014. Continental, Toyo Tires, Goodyear, Friendship Rubber Industry, Michelin, Bridgestone, Yokohama and Hankook are few of the leading tyre companies operating in the country.
Major automotive OEMs such as Mercedes-Benz, Toyota, Honda, Suzuki, Nissan, Peugeot, Volvo, BMW, Ford, Renault, Hino, Land Rover, Mazda, etc., have established their manufacturing plants in Malaysia to address domestic and export demand for automobiles in neighboring countries, thereby driving huge demand for automotive tyres in the country.
As of 2014, Malaysia’s vehicle motorization rate (for passenger cars and commercial vehicles) stood at around 400 vehicles per 1,000 people. Continuing increase in vehicle ownership coupled with the country’s growing infrastructure are forecast to drive modest growth in Malaysia tyre market over the next five years.