Vietnam Tire Market is projected to be worth USD 1.31 billion by 2033 and is anticipated to surge at a CAGR of 7.91%.
A tyre is a round, ring-shaped component of a vehicle that is fixed on rims and filled with air. In addition to acting as a tractive force between the car and the road, the tire's main job is to protect the wheel rim. Tyre movement over uneven ground creates a flexible cushion that lessens vibration and reduces stress. Since its origin, natural rubber has been used extensively in the production of tyres. In contrast, contemporary tyres are made of synthetic rubber, steel wires, carbon black, and other materials.
Vietnam Tire Market Driving Factors and Challenges
The Vietnam tyre market has expanded as a result of a number of causes, including the nation's thriving car manufacturing industry, which has helped it become self-sufficient. The rise of the market is also being fuelled by foreign investment in the construction of auto factories, including those for Toyota, Honda, Ford, Kia, and other manufacturers. Additionally, it is anticipated that the high import duties on autos will support market expansion during the forecast period. Due to a thriving domestic automotive manufacturing industry and rising foreign investment for the construction of auto manufacturing facilities, the Vietnam tyre market is expanding significantly. Additionally, tyres are growing smarter in keeping with market trends and consumption patterns as electric and smart cars become more popular. Tyre manufacturers are attaching tyres with sensors that provide alarms for preventive maintenance in order to avoid accidents in the case of wear and tear. Moreover, these sensors may capture data on vehicle acceleration, road temperature, and tyre pressure. Therefore, it is projected that when smart tyres are utilised more frequently, the Vietnamese tyre industry would expand.
On the other hand, one of the key concerns with regard to the market expansion of the Vietnamese tyre industry is the increased volatility in the price of raw materials. Raw ingredients for tyres and rubber are becoming more and more erratic in price. Rubber, steel, nylon, and other raw materials are among those whose prices are always fluctuating and are used to create tyres. The cost of fuel and the availability of bauxite and iron ore have an impact on the pricing of steel and aluminium globally.
Impact of COVID-19 on Vietnam Tire Market
Due to the disruption of the supply chain for the raw materials and components needed for tyre manufacture, the COVID-19 epidemic had a substantial influence on the market share of tyres in Vietnam. Lockdowns and diminished economic activity have also marginally decreased demand for automobiles. Additionally, the pandemic has restricted and disrupted logistics and transportation, which has had an impact on the import and export of tyres. Furthermore, because people prefer contactless methods of buying tyres, the epidemic has caused a shift towards e-commerce platforms for tyre sales.
Vietnam Tire Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Bridgestone Tire Mfg., Continental, Goodtime Rubber Co., Ltd., Goodyear, Kumho Tire, Maxxis International/Cheng Shin Rubber, Michelein, Kenda Rubber Co., Ltd., Pirelli & C. S.p.A, Sao Vang Rubber JSC, Sumitomo Rubber, The Southern Rubber Industries Joint., Toyo Tire Corp., Yokohama Tyre, Others.
Vietnam Tire Market Segmentation:
By Type: Based on the Type, Vietnam Tire Market is segmented as; Bias, Radial.
By Rim Size: Based on the Rim Size, Vietnam Tire Market is segmented as; Up to 19”, 20”-25”, above 25”.
By Vehicle Type: Based on the Vehicle Type, Vietnam Tire Market is segmented as; Light Commercial Vehicles, Medium and Heavy Commercial Vehicles, Off-The-Road (OTR), Passenger Cars, Two-Wheeler.
By Demand Category: Based on the Demand Category, Vietnam Tire Market is segmented as; Aftermarket, OEM.
By Sales Channel: Based on the Sales Channel, Vietnam Tire Market is segmented as; Offline, Online.
By Region: This research also includes data for Eastern Region, Northern Region, Southern Region, Western Region.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.