ERJ staff report (BC)
Kuala Lumpur, Malaysia – Rising affluence and car ownership have created a strong demand for passenger car tires in Malaysia’s booming central region, according to a retail audit report from market researcher GfK.
Sales of passenger car tires in the high-traffic states of Kuala Lumpur and Selangor are reported as rising consecutively in the last two years, with the first quarter of this year showing an increase of 14.6 percent over the same period in 2012.
There was an uptrend in demand for tires with lower aspect ratios, attributed to the growing popularity of lower-profile tires such as those rated 55, 50, 45, 40, as well as 35 and below.
These segments grew 26 percent in sales volume in the latest quarter; outpacing overall car tire volume growth of 14.6 percent. Lower profile tires, which made up 44 percent a year ago, have grown to make up over 49 percent of total car tire sales volume.
Following the rising popularity of lower profile tires in the region, car tires with rim diameter of 16 inch have emerged as the highest growth segment this quarter, accounting for nearly 18 percent of total sales volume. This has led to a lowered demand for the more traditional 13 and 14 inch rims, says GfK, which contributed to 32 percent in total.
GfK also reported a steady and gradual increase in the average price of car tires sold within the central region from an average of $77 (€59) per piece in March 2011 to an average of $100 (€77) by March this year.
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