ASEAN region will emerge as the sixth largest automotive market in the world by 2018 which will directly contribute to the growing demand for tires in Philippines.
Vancouver, British Columbia (PRWEB) August 01, 2013
The Philippines is one of the largest emerging markets in the ASEAN region, with a population of over 95 million. It’s economy performed exceptionally well during 2012 and also acclaimed to be one of the fastest growing economies in Asia. Increasing urbanization, rising disposable income and growth in industrialization are contributing significantly to the country’s automotive market. Over the last few years, the automotive industry in Philippines has witnessed noteworthy increase in demand for passenger cars and automotive loans, representing a strong consumer demand.
According to a recently published report by TechSci Research ‘Philippines Tyre Market Forecast and Opportunities 2018’, the country’s tire market majorly accounts for two wheeler and utility vehicles segment. One of the leading Japanese tire company has announced its plans to invest USD 640 Million by 2017 to increase its tire production by two and a half times from the existing level.
The tire market in the Philippines is expected to witness trade liberalization with the formation of ASEAN Economic Community (AEC), which is expected to be implemented by 2015. It is also expected that by 2018, ASEAN would become the sixth largest automotive market in the world and regional vehicle sales would double; hence directly contributing to the growing market for tires. In addition, the government of the Philippines is in the process of formulating a policy for the development and growth of automotive industry in the country, which is expected to be implemented by the end of 2013. The government aims to improve the natural rubber plantation in the country in order to boost the domestic tire market, which would encourage local players to set up new production units and also attract foreign investments in tire manufacturing. The government of the Philippines has planned to increase the rubber plantation from 138,710 hectares in 2010 to over 200,000 hectares by the end of 2016, implying an approximate annual increase of 10,000 hectares.
“The increasing investments in the sector along with growing demand for passenger cars would contribute significantly to the demand for tires in the country. The growing number of vehicles is also driving the demand for replacement tires. It is forecasted that the market will witness an increased demand for commercial vehicle tires and passenger car tires in next five years, which will make it a whopping USD 2.8 Billion market by 2018,” said Mr. Karan Chechi, Research Director with TechSci Research a research based global management consulting firm.
‘Philippines Tyre Market Forecast & Opportunities, 2018’ has evaluated the future growth potential of the Philippines tire market and provides statistics and information on market structure, industry statistics and trends. The report includes tire market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in tire market of the Philippines.