Burnaby, British Columbia, Canada, November 21, 2015 --(PR.com
)-- According to TechSci Research report, “Vietnam Tyre Market Forecast & Opportunities, 2020,” tyre market in Vietnam is forecast to touch US$ 2.7 billion by 2020. Prominent factors driving the market include growing automobile sales, rising automobile fleet, favorable government policies and increasing foreign investments in the country’s automotive sector. Moreover, Vietnam’s rubber production capability provides considerable opportunities to tyre manufacturers to increase production capacities and establish new manufacturing plants in the country. As of 2014, around 14 tyre plants accounting for a production capacity of more than 65 million units per annum, operated in the country.
Considering the growing demand for vehicles, many domestic and global players are strengthening their footprint in the country by establishing manufacturing plants in Vietnam. Government of Vietnam, on its part, inked WTO and AFTA agreements with neighboring countries to encourage foreign investments. All these factors have been fueling OEM and replacement demand for automotive tyres in Vietnam. Two-wheeler tyre segment dominates the market, followed by passenger car and commercial vehicle & OTR tyre segments. However, passenger car tyre segment is expected to exhibit fastest growth rate over the next five years, followed by commercial vehicle & OTR tyre segment.
“Vietnam tyre market is dominated by the replacement tyre market which accounted for over 80% of total tyre demand in the country. The share of replacement tyre market is expected to increase further during the forecast period due to growing automobile sales, which is translating into higher fleet size, thereby boosting the tyre demand in the replacement market,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.