Thailand Tire Market is projected to grow at a CAGR of around 3% during 2022-27 | Continental, Bridgestone

Thailand Tire Market is projected to grow at a CAGR of around 3% during 2022-27 | Continental, Bridgestone

January 12, 2024
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A Glimpse into the Tire Industry in Thailand

Asia, particularly Southeast Asian countries with hot weather and a monsoon climate, is recognized as a significant global source of rubber. Among them, Thailand, Indonesia, and Malaysia stand out as the top three producers, contributing to 75% of the world’s rubber production. The favourable conditions for rubber tree growth underscore the significance of rubber cultivation in this region.

Since the early 20th century, rubber has been Thailand’s major cash crop. With approximately 3.3 million hectares devoted to rubber plantations and around 1.6 million households engaged in rubber agriculture, Thailand is the leading global exporter and producer of high-quality rubber and rubber processing products, including tires, rubber gloves, and more.

With a comprehensive and efficient production process from cultivating rubber trees to manufacturing a diverse range of rubber products, Thailand has positioned itself as a leading player in rubber and, hence, an important contributor to the global tire market. Affirming this, MarkNtel Advisors has projected the Thailand Tire Market to grow at a CAGR of around 3% during the forecast period, i.e., 2022-27. As per the report, two-wheeler tires demonstrate the fastest growth, while radial tires are all set to acquire the largest market share through 2027.

Lucrative Areas in the Thai Tire Industry

The Tire Industry in Thailand is swiftly expanding, and the two-wheelers, in particular, are exhibiting the fastest growth. The reason might be the escalating traffic congestion and a burgeoning middle-class population. Another would be the affordability and convenience of two-wheelers in navigating high-traffic areas, contributing to their expanding fleet size across the country and creating more tire demand.

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However, the passenger cars segment is likely to continue its dominance in the Thai tire market. The probable factors behind this supremacy are individuals’ improved economic status and purchasing power, which has resulted in increased personal vehicle ownership. Not only this, but the growing popularity of taxi and cab services, such as airport Rail Link, Tommy Taxi Bangkok, Krabi Shuttle, Phuket Shuttle, Krabi Taxi Services, and more, have also led to increased sales of passenger cars. And the credit goes to the high influx of tourists and migrants in cities, including Bangkok, Chiang Mai, Phuket, Krabi, and more. Given the extended operational hours of these vehicles, their tires exhibit early signs of wear and tear, resulting in the demand for replacement tires, which, in turn, augments the overall market growth.

Regarding the type of tires, Radial ones garner the highest popularity, holding the maximum market share, thanks to their advantages such as flexible sidewalls, stable surface contact, decreased fuel consumption, rolling resistance, and improved driving efficiency. With increasing awareness about such benefits, key industry players are ramping production capacities to cater to the increasing demand. Nonetheless,

Bias tires will likely contribute significantly to the overall market growth driven by Thailand’s steadily increasing demand for two-wheelers.

Read More- https://www.marknteladvisors.com/research-library/thailand-tire-market-analysis.html

Bridgestone Successfully Concludes Tire Production Consolidation in Thailand

In October 2023, Bridgestone Corp. concluded the consolidation of its tire production operations in Thailand by shutting down its Rangsit plant and relocating production to two alternative sites.

The Japanese conglomerate officially ceased operations at the Rangsit facility, where it had been manufacturing passenger car radials (PCRs) and truck & bus radials (TBRs). Established in 1967, the Rangsit unit employed 1,070 individuals and could produce 2,280 units/day of PCRs and 2,100 units/day of TBRs. In Thailand, Bridgestone continues to operate a specialty tire production facility in Amata City, Rayong, where it focuses on the manufacturing of earthmover/OTR tires.

Second Largest Global Player in Electric Tires

In 2022, Thailand emerged as the world’s second-largest electric tire exporter, trailing only behind China. This achievement granted Thailand a notable market shares of around 7.1% in the global tire export landscape, with its share valued at $120 million or 4,000 million baht. A key advantage for Thailand lies in its abundant raw material sources, particularly as a significant global supplier of rubber.

Other than this, Thailand serves as a pivotal testing and certification center within the ASEAN region. Its unwavering support for the electric vehicle industry further positions it favorably to engage in various aspects of the automotive process.

Jiangsu General Science Technology to Invest €240 Million in Expanding Radial Tire Production in Thailand

Jiangsu General Science Technology Co. Ltd has revealed its intention to invest Yuan1.9 billion (€240 million) in expanding the production of high-performance radial tires at its Rayong plant in Thailand. According to a filing made to the Shanghai Stock Exchange, the project aims to nearly double the annual capacity of the facility, incorporating an additional 500,000 all-steel truck & bus radial (TBR) tires and 6 million passenger car radial tires. The subsidiary managing the operation, General Rubber (Thailand), has been operational since 2020 and currently possesses the capacity to manufacture 1 million TBR tires and 6 million passenger car tires.

About Us:

MarkNtel Advisors is a leading research, consulting and data analytics firm that provides a wide range of strategic reports on diverse industry verticals to a substantial and varied client base that includes multinational corporations, financial institutions, governments, and individuals.

We specialize in niche industries and emerging geographies to support our clients in the formulation of strategies viz. Go to Market (GTM), product development, feasibility analysis, project scoping, market segmentation, competitive benchmarking, market sizing & forecasting, trend analysis, etc. in around 15 industry verticals to enable our clients to identify attractive investment opportunities and maximize ROI through an early mover advantage.

We understand the growing need of our clients and thus focus on emerging industries to provide our services which can fulfil their need for assessing the current and future industry potential, identification of white spaces & hotspots and venturing into new geographies or business segments.

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