Opportunities for more tyre retail outlets in SE Asia - GfK

ERJ staff report (DS)

London -- Global leading market research company GfK says Seoul has a ratio of around 1172 cars per tyre store, whereas each tyre store in Kuala Lumpur, Bangkok, Jakarta or Manila services an average of 2250 vehicles.

“Our study shows that there has been a considerable increase in the number of automotive-related retailers in the region. Take Jakarta for example. GfK's most recent universe count conducted in May 2010 registered a 23 percent increase in the total number of car garages and tyre specialists as compared to the previous one carried out in April 2009,” commented Stanley Kee, Regional Commercial Director of GfK Asia.

GfK findings also reported revenue increases in the passenger car tyre aftermarket across Indonesia, Malaysia, and Korea when comparing the respective countries' latest quarter's sales values with the same quarter* in 2009. Developing economies like Malaysia and Indonesia grew at a higher rate of 8.3 and 17.9 percent respectively, while the replacement car tyre industry in South Korea, a developed market, grew at a much lesser extent at 2.5 percent.

“As cars become more stylish, tyre trends move in similar tandem to match in sophistication, leaning towards higher speed ratings, and heavier tyres as a result of larger rims as well as wider tyre widths. In addition to the increased weight, rising costs of raw materials have been causing prices of tyres to rise over the past year,” noted Mr. Kee.

Looking forward, Mr. Kee concluded, “With vehicle population in developing countries on a constant uptrend, there is definitely more room for retail network expansion and also for the entrance of more players to meet the high demand of the constantly evolving automotive industry. The industry would be better able to provide truly localised, quicker and dedicated professional service to vehicle owners.”

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Press release from GfK