Report Overview

Bangladesh Tire Market – Industry Trends & Forecast Report 2029

The Bangladesh tire market size was worth USD 186.6 million in 2022. During the forecast period between 2023 and 2029, the Bangladesh tire market size is expected to grow at a CAGR of 2.9% reaching a value of USD 227.5 million by 2029. The Bangladesh tire market is driven by rapid urbanization and a growing middle class which leads to greater vehicle ownership. The shift toward sustainable practices has prompted a focus on eco-friendly and fuel-efficient tires. Additionally, advancements in technology, such as tire sensors and digital solutions, are enhancing safety and performance, further stimulating market growth. The rise of e-commerce platforms is providing consumers with convenient avenues for tire purchases. These multifaceted drivers collectively shape the landscape of the Bangladesh tire market, fostering opportunities for manufacturers and suppliers alike.

Tire - Overview

Tire refers to a crucial component of a vehicle, designed to provide traction, support, and safety while enabling motion on roads. It is a rubber or synthetic material covering that encases a vehicle's wheel rim, cushioning the impact of road irregularities and providing a stable contact surface. Tires are specifically engineered to endure various road conditions, carrying the vehicle's weight, and transmitting forces like braking, accelerating, and steering. They come in different types, such as radial or bias, and are categorized by vehicle types like passenger cars, commercial vehicles, and two-wheelers. Tires can be used for Original Equipment Manufacturer (OEM) installation on new vehicles or purchased as replacements when the original ones wear out. Additionally, they can be equipped with tubes or designed as tubeless, offering different advantages in terms of performance, safety, and maintenance.

Bangladesh Tire Market

Growth Drivers

Growing Demand for Automobiles

The automobile market in Bangladesh has witnessed a substantial surge in demand, directly impacting the tire industry. The country's growing economy, increasing disposable income, and urbanization have collectively driven a higher demand for automobiles, leading to a subsequent rise in tire sales. As more individuals and businesses invest in vehicles for personal and commercial purposes, the need for quality tires has intensified. The expansion of the automotive sector, coupled with improved road infrastructure, has amplified the demand for reliable and durable tires that offer enhanced safety and performance. According to Bangladesh Road Transport Authority, the total number of registered motor vehicles in Bangladesh increases from 3,77,660 in 2020 to 4,45,030 in 2021.  Additionally, the influx of foreign automobile manufacturers and dealerships has stimulated competition, prompting local and international tire manufacturers to cater to the market's evolving preferences. To address this growing demand, tire companies are focusing on innovations in tire technology, tread patterns, and materials to ensure longevity, fuel efficiency, and better traction. Government initiatives to boost the automotive industry, coupled with financing options, have made vehicle ownership more accessible to a broader segment of the population, further boosting tire sales.

Restraints

High Import Duties on Tire

High import duties on tires have emerged as a significant restraint in the Bangladesh tire market. These duties, aimed at protecting domestic tire manufacturers, increase the overall cost of imported tires, rendering them more expensive for consumers and businesses alike. As a result, this policy limits consumer choices and makes it harder for local businesses to access affordable and diverse tire options. The higher prices discourage potential buyers from purchasing imported tires, leading to a potential imbalance in the market and reduced competition. Consequently, this hampers the growth of the tire market, stifles innovation, and restricts the availability of specialized tires. To foster a healthier tire market, policymakers might consider a more balanced approach to import duties, promoting fair competition and a wider range of choices for consumers and businesses.

Impact of COVID–19 on Bangladesh Tire Market

Lockdowns, supply chain disruptions, and reduced economic activity led to a decline in demand for tires across various sectors, including automotive and industrial. The automotive industry, a major consumer of tires, experienced a slowdown due to restricted movement and reduced consumer spending. Furthermore, disruptions in the global supply chain affected the availability of raw materials and components, leading to production challenges. While the market has shown signs of recovery as restrictions eased, the overall growth trajectory remains uncertain. E-commerce and digital platforms gained prominence as consumers turned to online channels for tire purchases. Government stimulus packages and industry adaptations to changing consumer behaviour played roles in mitigating the impact. The long-term market outlook hinges on economic revival, consumer confidence, and the pace of industrial and commercial resurgence.

Bangladesh Tire Market – By Vehicle Type

Based on vehicle type, the Bangladesh tire market is segmented into passenger cars, light commercial vehicles (LCVs), medium & heavy commercial vehicles (M&HCVs), off-the-road (OTR) vehicles, and two-wheelers. The two-wheelers segment shows significant growth due to the country's transportation landscape and socioeconomic factors. Two-wheelers, such as motorcycles and scooters, are widely popular in Bangladesh due to their affordability, fuel efficiency, and suitability for navigating the country's congested roads. They provide a cost-effective mode of transportation, especially for the vast population with limited purchasing power. As a result, a significant portion of the population relies on two-wheelers for daily commuting and transportation needs. Additionally, Bangladesh's road infrastructure and traffic conditions often favor two-wheelers, allowing them to maneuver through congested areas more easily than larger vehicles. This is particularly beneficial in urban areas where traffic congestion is a common issue. The demand for two-wheeler tires remains relatively consistent, as they are essential for the operation and safety of these vehicles. This consistent demand has contributed to the prominence of the two-wheeler tire segment in the overall tire market.

Bangladesh Tire Market – By Demand

Based on the demand, the Bangladesh tire market is split into OEM (Original Equipment Manufacturer) and replacement segments. The replacement segment holds a dominant position, due to the country's road infrastructure and driving conditions often leading to higher wear and tear on tires, necessitating more frequent replacements. Also, the majority of vehicles on the road are older and used, increasing the demand for replacement tires. Thirdly, economic considerations drive consumers to prioritize cost-effective options, leading them to opt for replacement tires rather than OEM tires, which are generally associated with higher prices. Additionally, the availability of a wide range of replacement tire brands and options further contributes to the segment's larger market share.

Bangladesh Tire Market – By Tube Type

Based on the tube type, the Bangladesh tire market is bifurcated into tube and tubeless segment. The tubeless is a larger segment as these offer advantages such as reduced maintenance, better fuel efficiency, and enhanced safety due to their ability to maintain pressure even if punctured. These benefits are particularly attractive to consumers seeking cost-effective and reliable options, which is crucial in a market like Bangladesh where price sensitivity is high. Moreover, tubeless technology aligns with the demands of modern vehicles and their increasing adoption. As vehicles become more advanced and manufacturers emphasize efficiency and safety, the preference for tubeless tires grows. Despite this, some older vehicles and specific applications might still require tubes.

Bangladesh Tire Market – By Type of Tires

Based on the type of tires, the Bangladesh tire market is segmented into radial and bias. The bias segment holds a larger share due to their lower manufacturing costs and suitability for certain vehicles and conditions. They are commonly used in commercial vehicles and off-road applications due to their robust construction.

Radial tires will grow at a higher rate over the forecast period due to their superior performance, longevity, and fuel efficiency. As vehicle technology and road infrastructure improve, radial tires have become more appealing to consumers seeking better handling and comfort. While the bias tire segment remains significant, the radial tire market has been growing steadily as consumers increasingly value the benefits they offer. The shift towards radial tires reflects an evolving preference for improved performance and efficiency, though the exact market share balance can vary based on factors like vehicle types, consumer preferences, and economic conditions.

Bangladesh Tire Market – By Sales Channel

Based on the sales channel, the Bangladesh tire market is segmented into dealer/exclusive outlets, online, and others. The dealer/exclusive outlets segment is the largest sales channel attributed to the country's traditional buying patterns, where consumers prefer to physically examine tires and seek expert advice before making a purchase. The exclusive outlets provide a direct experience, allowing customers to assess tire quality, size, and suitability for their vehicles. Moreover, the automotive market in Bangladesh has been offline, reinforcing the significance of brick-and-mortar dealerships.

While online sales have been on the rise, especially accelerated by the pandemic, they have yet to surpass the dominance of physical outlets. Challenges like limited internet access in certain areas, digital literacy, and customer preference for personalized assistance continue to favour traditional outlets. However, with improving digital infrastructure and changing consumer behaviours, the online segment is steadily growing, emphasizing the importance of a multi-channel strategy for tire manufacturers and retailers to cater to diverse customer preferences.

Competitive Landscape

The Bangladesh tire market is characterized by many regional and Bangladesh vendors. The key players operating in the Bangladesh tire market include Apex Footwear Limited, Rahimafrooz, BRB Cable Industries Limited, Khan Tyre and Rubber Industries Limited, RANGPUR FOUNDRY LTD, Jamuna Tyres, M R Trading, MRF Tyre Distributor, Triangle Tyre Bangladesh Limited, and National Tyre and Rubber Industries Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 - Jamuna Tyres launched a new range of tires for motorcycles, offering improved fuel efficiency and wet road grip.

• In May 2023 - RANGPUR FOUNDRY LTD introduced a durable tire range for buses and trucks, emphasizing enhanced fuel efficiency.

• In April 2023 - Khan Tyre and Rubber Industries Limited marked its maiden tire export to India, signifying an expansion in its market reach.

• In March 2023 - BRB Cable Industries Limited unveiled robust tires for off-road vehicles, designed to provide superior traction on rugged terrain.

• In February 2023 - Rahimafrooz disclosed a USD 100 million investment for a tire manufacturing plant, projected to be operational by 2025, fostering job creation.

• In January 2023 - Apex Footwear Limited launched a new tire line for passenger cars and commercial vehicles, highlighting better wet road traction and fuel efficiency.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Medium & Heavy Commercial Vehicles (M&HCVs)

• Off-the-Road (OTR) Vehicles

• Two Wheelers

By Demand Category

• OEM

• Replacement

By Type of Tires

• Radial

• Bias

By Sales Channel

• Dealer/Exclusive Outlets

• Online

• Others

By Tube Type

• Tube

• Tubeless

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Bangladesh Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Growing demand for automobiles
         2. Increasing road infrastructure
      2. Restraints
         1. High import duties
         2. Lack of skilled labor
      3. Opportunities
         1. Growing demand for radial tires
         2. Development of new tire technologies
      4. Challenges
         1. High cost of raw materials
         2. Inadequate infrastructure
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Bangladesh Tire Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles (LCVs)
         3. Medium & Heavy Commercial Vehicles (M&HCVs)
         4. Off-the-Road (OTR) Vehicles
         5. Two Wheelers
      2. By Demand Category
         1. OEM
         2. Replacement
      3. By Type of Tires
         1. Radial
         2. Bias
      4. By Sales Channel
         1. Dealer/Exclusive Outlets
         2. Online
         3. Others
      5. By Tube Type
         1. Tube
         2. Tubeless
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid–19 on Bangladesh Tire Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Apex Footwear Limited
   2. Rahimafrooz
   3. BRB Cable Industries Limited
   4. Khan Tyre and Rubber Industries Limited
   5. RANGPUR FOUNDRY LTD
   6. Jamuna Tyres
   7. M R Trading
   8. MRF Tyre Distributor
   9. Triangle Tyre Bangladesh Limited
   10. National Tyre and Rubber Industries Ltd
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Bangladesh Tire Segmentation                    

Figure 2       Bangladesh Tire Market Value Chain Analysis                   

Figure 3       Company Market Share Analysis, 2022                  

Figure 4       Bangladesh Tire Market Size, By Value (USD Million), 2019–2029                           

Figure 5       Bangladesh Tire Market Share, By Vehicle Type, By Value, 2019–2029                    

Figure 6       Bangladesh Tire Market Share, By Demand Category, By Value, 2019–2029                                               

Figure 7       Bangladesh Tire Market Share, By Type of Tires, By Value, 2019–2029

Figure 8       Bangladesh Tire Market Share, By Sales Channel, By Value, 2019–2029

Figure 9       Bangladesh Tire Market Share, By Tube Type, By Value, 2019–2029

List of Tables

Table 1        Bangladesh Tire Market Size, By Value (USD Million), 2019–2029

Table 2        Bangladesh Tire Market Share, By Vehicle Type, By Value, 2019–2029                    

Table 3        Bangladesh Tire Market Share, By Demand Category, By Value, 2019–2029                                                  

Table 4        Bangladesh Tire Market Share, By Type of Tires, By Value, 2019–2029

Table 5        Bangladesh Tire Market Share, By Sales Channel, By Value, 2019–2029

Table 6        Bangladesh Tire Market Share, By Tube Type, By Value, 2019–2029

Table 7        Apex Footwear Limited Company Overview

Table 8        Apex Footwear Limited Financial Overview

Table 9        Rahimafrooz Company Overview

Table 10      Rahimafrooz Financial Overview

Table 11      BRB Cable Industries Limited Company Overview

Table 12      BRB Cable Industries Limited Financial Overview

Table 13      Khan Tyre and Rubber Industries Limited Company Overview

Table 14      Khan Tyre and Rubber Industries Limited Financial Overview

Table 15      RANGPUR FOUNDRY LTD Company Overview

Table 16      RANGPUR FOUNDRY LTD Financial Overview

Table 17      Jamuna Tyres Company Overview

Table 18      Jamuna Tyres Financial Overview

Table 19      M R Trading Company Overview

Table 20      M R Trading Financial Overview

Table 21      MRF Tyre Distributor Company Overview

Table 22      MRF Tyre Distributor Financial Overview

Table 23      Triangle Tyre Bangladesh Limited Company Overview

Table 24      Triangle Tyre Bangladesh Limited Financial Overview

Table 25      National Tyre and Rubber Industries Ltd Company Overview

Table 26      National Tyre and Rubber Industries Ltd Financial Overview

Table 27      Other Prominent Players Company Overview

Table 28      Other Prominent Players Financial Overview