ERJ staff report (DS)
Singapore -- Demand for replacement car tyre markets in the major cities of Thailand, Malaysia, Indonesia, and the Philippines saw a surge in demand in the first quarter of this year over the previous quarter.
A new survey from GfK Asia shows that growth in the opening quarter of the year was driven predominantly by demand boosts in Bangkok and vicinity as well as Malaysia's Klang Valley, which registered incremental sales volume of 38 and 16 percent compared to the closing quarter of 2011. The Bangkok figure is unusual, as it was based on a sharp reduction in sales due to floods around the turn of the year.
"While the healthy sales performance of replacement car tyre in Malaysia was driven by seasonal demand brought about by the festive Chinese New Year period in January, the sudden sales spike in Thailand was an exceptional occurrence that was a result of the flooding disaster which took place at the end of third quarter last year,â€ highlighted Ms. Jasmine Lim, Account Director at GfK Asia. "As a result, replacement car tyre sales fell by 26 percent in quarter four last year, but pent up demand drove sales up considerably in the following quarter.â€
GfK said Japanese brands have historically dominated this region, but that dominance is fading as consumers look for better value. Comparing first quarter results of this year versus the last, market share of major Japanese tyre makers declined by nearly 3 percent. Nevertheless, they are still holding the lion's share of about 40 percent across all four countries. Sales of local and international brands are on the uptrend with their improving standings.
â€we anticipate that tyre brands which are best able to offer top value for consumers' bucks to be the ones who will flourish and grow in 2012,â€ said Lim. GfK reports also showed that the average price of replacement car tyres have remained relatively stable in the last year, increasing by only USD2 per tyre across the four markets.
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Press release from GfK Asia