Report Overview

Malaysia Tire Market- Industry Trends & Forecast Report 2027

Malaysia tire market was worth USD 1,274.2 million in 2020 and is further projected to reach USD 2,050.4 million by the year 2027, growing at the CAGR of 7.2% in the forecast period.  Malaysia's tire market is flourishing as a result of increasing automobile production and investments in public transportation. Also contributing to the market's growth is the increasing import of low-cost Chinese tires, as well as an increase in private vehicle ownership.

Source: BlueWeave Consulting

Malaysia Tire Market- Overview

A tire is a rubberized component of a vehicle that protects the rim of the wheel externally besides facilitating the smooth movement of vehicles. Its main purpose is to protect the wheel rim and provide tractive force between the road surface and the vehicle. Rubber tires are made up of tread, jointless cap piles, beads, and other materials such as synthetic rubber, carbon black, and fabric.

As the demand for personal sedans and SUVs for a variety of sports and off-road activities increases in Malaysia, the country’s tire market is also experiencing significant growth. Moreover, eco-friendly tire options, such as Michelin Energy and Bridgestone Ecopia, are making their way into the market in an effort to better suit varying driving conditions, which is expected to further drive innovation in the tire industry of the country.

Malaysia Tire Market Forecast and Trends

Growth Drivers

Increasing Tire Production Capacity

In response to the increasing demand for tires in the domestic market of Malaysia, many international tire brands are establishing their own production facilities to boost sales and exports. Malaysia has several leading tire manufacturers, including Toyo Tires, Goodyear Tire & Rubber Company, Pirelli Tire, etc. Each of these companies invests heavily in increasing production capacity. For instance, in 2017 the Toyota Tire and Rubber Company announced its plans to increase the production capacity of its facilities in Malaysia.

Growing Popularity of Smart Tires

With the growing popularity of smart automotive design, smart tires are increasingly making their space in the automobile industry in Malaysia.  The growth of the country’s tire market is driven by the increasing penetration of electric vehicles and the launch of smart tires in the market by tire manufacturers. Tire manufacturers in Malaysia are innovating their products and adding advanced technologies, such as sensors, to transform their products into smart tires. The sensors help track crucial information about the tire's surroundings, such as road temperature, tire pressure, and vehicle acceleration. Data collected is then transferred and processed into smartphones for predictive maintenance, accident prevention, etc. Thus, smart tires are likely to provide lucrative growth opportunities to the Malaysia tire market.

Restraints

High Prices of Cars Due to Import Duties

The Malaysia car market is dominated by two local manufacturers—Proton and Perodua. These two companies are backed by the government schemes through National Car Policy that acts as a trade barrier for the international car brands. High import duties make the foreign manufacturers' cars extremely expensive for the Malaysians, thus, limiting the number of vehicles on roads.  Several reports indicate that foreign cars are subject to taxes that are 200% higher than their original pricing. This reduces the number of private vehicles in the country, impacting the demand for tires.

Impact of COVID-19 on Malaysia Tire Market

The growth of the Malaysia tire market was negatively impacted by the sudden outbreak of the COVID-19 pandemic. In order to contain the spread of the deadly coronavirus, the Malaysian government issued a Movement Control Order in 2020. Moreover, nationwide lockdown and travel restrictions halted the production operations of both tire and automobile manufacturers, adversely affecting the market revenue. Furthermore, the downfall in the country’s economy directly affected the purchasing power of the consumers, which resulted in the sharp decline in the demand for private vehicles, incurring huge losses to the Malaysia tire market.

Malaysia Tire Market - By Design

Based on designs, the Malaysia tire market is segmented into radial and bias. The radial tires segment accounts for the largest share in the Malaysia tire market. Radial tires are prominently used in passenger vehicles and light commercial vehicles due to their better flexibility compared to their counterparts.  Radials are also known for their low fuel consumption, enhanced flotation and traction, and higher cutting resistance in the tread area. Also, these tires offer better performance and lower fuel consumption than bias tires, which makes them popular among end-users.

Malaysia Tire Market - By Vehicle Type

Based on vehicle types, the Malaysia tire market is grouped into passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR). The passenger cars vehicle segment accounts for the largest market share, driven by the increasing private vehicle ownership. According to a study titled, ‘Private Vehicle Ownership & Transportation Planning in Malaysia’ published by IPCSIT, Malaysia's population was 28.3 million in 2010, and there were 17.4 million private vehicles. The growing demand for private cars in Malaysia can be ascribed to the rising disposable income due to economic growth. The car population rate has increased in most urban cities of the country, such as Kuala Lumpur, Johor Bahru, Kuching, Penang, and Kota. Furthermore, the flourishing cab services industry is also boosting the number of passenger cars on roads, further propelling the overall market growth.

Malaysia Tire Market - By End-User

Based on end-users, the Malaysia tire market is grouped into OEM and replacements segments. The original equipment manufacturer (OEM) segment holds the largest market share because of the high concentration of automobile manufacturers, such as Bufori, EV Innovations, Perodua, Proton, etc. in the country. With an average annual production of over 500,000 vehicles, the production rate of tires is also increasing every year, fueling the demand for tires in the country. However, the replacement segment is also growing at a high rate because of the increasing private vehicle ownership and the need for periodic maintenance and replacement of tires for maximum safety.

Malaysia Tire Market - Competitive Landscape

The leading players in the Malaysia tire market are Goodyear Tire & Rubber Co, Michelin Malaysia Sdn. Bhd, Continental Tyre Malaysia Sdn Bhd, Bridgestone Tyre Sales Sdn. Bhd, Hankook Tire Malaysia Sdn. Bhd., Toyo Tyre Malaysia Sdn. Bhd., Maxxis Tires Malaysia., Pirelli Tyre S.p.A, Yokohama Rubber Company, BKT Tires, and other prominent players.

The Malaysia tire market is highly dominated by multinational tire corporations that have a strong presence in the country. These companies significantly invest in expanding their tire production in the country to meet domestic needs as well as boost their exports.  In addition, they offer a wide range of tires for a variety of vehicles to increase their product penetration and diversify their end-user base. In addition, this market is also characterized by the use of competitive strategies, such as joint ventures, mergers, acquisitions, partnerships, etc.

Recent Developments

• In October 2021, Michelin, the leading French multinational tire manufacturing company, announced the launch of the LTX Trail in Malaysia, a multipurpose tire targeted towards on and off-road applications.

Scope of the Report:

By Design

• Radial
• Bias

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Medium and Heavy Commercial Vehicles
• Two Wheelers
• Three Wheelers
• Off-The-Road (OTR)

By End-User

• OEM
• Replacements

By Distribution Channel

• Online Distributors
• Offline Distributors

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Tire Production Capacity
         2. Growing Popularity of Smart Tires
      2. Market Restraints
         1. High Prices of Cars Due to Import Duties
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Increasing Automobile Production
         2. Growing Number of Private Vehicle Ownership
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Malaysia Tire Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Design
         1. Radial
         2. Bias
      2. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles
         3. Medium and Heavy Commercial Vehicles
         4. Two Wheelers
         5. Three Wheelers
         6. Off-The-Road (OTR)
      3. By End-User
         1. OEM
         2. Replacements
      4. By Distribution Channel
         1. Online Distributors
         2. Offline Distributors
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Malaysia Tire Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Goodyear Tire & Rubber Co
   2. Michelin Malaysia Sdn. Bhd
   3. Continental Tyre Malaysia Sdn Bhd
   4. Bridgestone Tyre Sales Sdn. Bhd
   5. Hankook Tire Malaysia Sdn. Bhd.
   6. Toyo Tyre Malaysia Sdn. Bhd.
   7. Maxxis Tires Malaysia.
   8. Pirelli Tyre S.p.A
   9. Yokohama Rubber Company
   10. BKT Tires
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Malaysia Tire Market Segmentation

Figure 2: Malaysia Tire Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Malaysia Tire Market Size, By Value (USD Million), 2017-2027

Figure 5: Malaysia Tire Market Share (%), By Design, By Value, 2017-2027

Figure 6: Malaysia Tire Market Share (%), By Vehicle Type, By Value, 2017-2027

Figure 7: Malaysia Tire Market Share (%), By End-User, By Value, 2017-2027

Figure 8: Malaysia Tire Market Share (%), By Distribution Channel, By Value, 2017-2027

List of Tables

Table 1: Malaysia Tire Market Size, By Design, By Value, (USD Million), 2017-2027

Table 2: Malaysia Tire Market Size, By Vehicle Type, By Value, (USD Million), 2017-2027

Table 3: Malaysia Tire Market Size, By End-User, By Value, (USD Million), 2017-2027

Table 4: Malaysia Tire Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

Table 5: Goodyear Tire & Rubber Co Financial Analysis

Table 6: Goodyear Tire & Rubber Co Business Overview

Table 7: Maxxis Tires Malaysia. Malaysia Sdn. Bhd Financial Analysis

Table 8: Maxxis Tires Malaysia. Malaysia Sdn. Bhd Business Overview

Table 9: Continental Tyre Malaysia Sdn Bhd Financial Analysis

Table 10: Continental Tyre Malaysia Sdn Bhd Business Overview

Table 11: Bridgestone Tyre Sales Sdn. Bhd Financial Analysis

Table 12: Bridgestone Tyre Sales Sdn. Bhd Business Overview

Table 13: Hankook Tire Malaysia Sdn. Bhd. Financial Analysis

Table 14: Hankook Tire Malaysia Sdn. Bhd. Business Overview

Table 15: Toyo Tyre Malaysia Sdn. Bhd. Financial Analysis

Table 16: Toyo Tyre Malaysia Sdn. Bhd. Business Overview

Table 17: Maxxis Tires Malaysia. Financial Analysis

Table 18: Maxxis Tires Malaysia. Business Overview

Table 19: Pirelli Tyre S.p.A Financial Analysis

Table 20: Pirelli Tyre S.p.A Business Overview

Table 21: Yokohama Rubber Company Financial Analysis

Table 22: Yokohama Rubber Company Business Overview

Table 23: BKT Tires Financial Analysis

Table 24: BKT Tires Business Overview