Thailand has emerged as one of the most preferred destinations for automobile production for various leading global automotive players due to availability of cheap labor and geographical advantage of its location in the ASEAN (Association of Southeast Asian Nations) region.
Thailand is the leading rubber producing country worldwide, and accounted for around one-third of the global rubber production in 2014. Major global automotive OEMs such as General Motors, Toyota, Honda, Mitsubishi, Honda, Isuzu, Ford, Nissan, etc., have established their manufacturing plants in Thailand, in order to address increasing domestic as well as global demand for automobiles, which in turn, has been surging demand for automotive tyres in the country. Thai automotive OEM companies cumulatively produced around 3 million light commercial vehicles and two-wheelers in 2014, thereby propelling demand for tyres from the OEM segment.
According to “Thailand Tyre Market Forecast & Opportunities, 2020”, with increasing automobile production, domestic vehicle sales, abundant rubber availability and growth-oriented government initiatives, Thailand tyre market is expected to witness consistent growth over the next five years.
Two-wheeler motorization rate is very high as compared to other vehicle segments in Thailand. Consequently, two-wheeler tyre segment is anticipated to continue its domination in the country’s tyre market during the forecast period, in volume terms, followed by light commercial vehicle tyre segment.
Thailand tyre market is majorly dominated by global players such as Bridgestone, Michelin and Goodyear, followed by Yokohoma, Sumitomo, Pirelli and Continental. However, other global players such as Toyo Tyres, Nokian, Apollo, Dunlop, Falken, etc., have also entered Thailand over the last few years, which has consequently increased competition among the tyre companies operating in the country.