The market is also witnessing a rapid increase in the demand for winter tyres and eco-friendly tyres
Burnaby, British Columbia (PRWEB) December 19, 2013
South Korea has one of the largest automotive industries in the world, both in terms of production and exports. The rapid growth in the country’s automotive exports are contributing to a speedy increase in the demand for tyres. The tyre sales in the country are supported by the demand for OEMs for domestic and export market along with the increasing replacement market for tyres. Availability of cheap and skilled labor force, FTA (Free Trade Agreement) with EU & US and rapid technological developments are boosting the demand for tyres in South Korea.
According to the recently published TechSci Research report “South Korea Tyre Market Forecast and Opportunities, 2018”, the tyre industry in South Korea is expected to grow at the CAGR of 5% during 2013-2018 in value as a result of continuous increase in the demand of tyres from the OEMs as well as the increasing demand for tyres in the replacement market. The increasing replacement demand can be attributed to the fact that South Korea’s vehicle population is one of the highest in the world. South Korea’s tyre industry is dominated by Hankook, Kumho and Nexen. These companies account for majority of the tyre sales in South Korea’s market.
The vehicle production in South Korea is increasing fast and as a result, tyre companies operating in South Korea are also expanding their scale of operations. The market is also witnessing a rapid increase in the demand for winter tyres and eco-friendly tyres. The increasing demand for energy efficiency is necessitating the usage of eco-friendly tyres while the sales of winter tyres are increasing to ensure vehicle safety during the winter season.
Apart from the sales of tyres in the OEM and the replacement market, majority of the tyres are exported from South Korea. The country is one of the largest producers and exporters of tyres in the world. Tyres manufactured in South Korea are preferred in the global market because of their less price and high quality. The market for automobile and tyre exports is increasing each year.
“The market for tyres in South Korea is being driven by the increasing automotive demand. The country has emerged as one of the most promising tyre markets across the globe because of its technological advancements, FTA’s with US and EU, etc. As a result of increasing demand for South Korean made vehicles in North America and several Asian markets, the market for tyres in South Korea will grow further. The demand for small cars and electric cars made in South Korea is increasing in these regions and this will drive the tyre market in South Korea over the coming years,” said Mr Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“South Korea Tyre Market Forecast & Opportunities, 2018” has analyzed the potential of the tyre market in South Korea and provides statistics and information on market sizes, shares and trends. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyses the emerging trends along with essential drivers and key challenges faced by the tyre industry.