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Market Intelligence . Consulting Philippines Tire Market Forecast and Opportunities, 2021

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M a r k e t I n t e l l i g e n c e . C o n s u l t i n g

P h i l i p p i n e s T i re M a r ke t Fo re c a s t a n d O p p o r t u n i t i e s , 2 0 2 1

P r o d u c t O v e r v i e w

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Vehicle Segment Sub-Segment Customer Segment

Passenger Car

Van

IndividualsSedan/Hatchback

Multi Purpose Vehicle (MPV)/Sports Utility Vehicle (SUV)

Commercial Vehicle

Light Commercial Vehicle

Transport Companies, Logistics, Small Business Entrepreneurs, Delivery Services, Government, Logistics, SMEs, Construction

Asian Utility Vehicle

Light Trucks

Heavy Truck & Bus

Two-WheelerScooters/Underbone

Individuals, Delivery ServicesMotorcycle

Global tire supplier Michelin defines tire as, “A precisely engineered assembly of rubber,chemicals, fabric, and metal, designed to provide traction, cushion road shock andcarry a load under varying conditions.”

Classification According to Vehicle Type

Product Definition

T a b l e o f C o n t e n t s

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S. No. Contents

1. Research Methodology

2. Product Overview

3. Analyst View

4. Philippines Tire Production Overview

5. Philippines Tire Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value & Volume

5.2. Market Share & Forecast

5.2.1. By Vehicle Type (Two-Wheeler, Passenger Car and Commercial Vehicles)

5.2.2. By Company

5.2.3. By Region

6. Philippines Replacement Tire Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value & Volume

6.2. Market Share & Forecast

6.2.1. By Vehicle Type (Two-Wheeler, Passenger Car and Commercial Vehicles)

7. Philippines Two-Wheeler Tire Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value & Volume

7.2. Market Share & Forecast

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S. No. Contents

7.2.1. By Demand Category (OEM Vs. Replacement)

7.2.2. By Vehicle Type (Underbone/Scooter and Motorcycle)

8. Philippines Commercial Vehicle Tire Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value & Volume

8.2. Market Share & Forecast

8.2.1. By Demand Category (OEM Vs. Replacement)

8.2.2. By Vehicle Type (LCV, AUV, Light Truck and Heavy Truck & Bus)

9. Philippines Passenger Car Tire Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value & Volume

9.2. Market Share & Forecast

9.2.1. By Demand Category (OEM Vs. Replacement)

9.2.2. By Vehicle Type (MPV/SUV, Sedan/Hatchback and Van)

10. Import-Export Analysis

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Improving Automotive Sector Scenario

12.2. Growing Demand for Retread Tires

12.3. Increasing Domestic Rubber Production

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S. No. Contents

12.4. Presence of Smuggled Chinese Tires

12.5. Implementation of Favorable Government Initiatives

13. Policy & Regulatory Landscape

14. Philippines Economic Profile

15. Competitive Landscape

15.1. Bridgestone Corporation

15.2. Goodyear Philippines, Inc.

15.3. Yokohama Rubber Company, Ltd.

15.4. Michelin Asia (Singapore) Co. Pte. Ltd.

15.5. Toyo Tire and Rubber Company Ltd.

15.6. Kumho Tire Co., Inc.

15.7. Cheng Shin Rubber Industries Co. Ltd.

15.8. Zhongce Rubber Group Co., Ltd.

15.9. Federal Corporation

15.10. Southern Rubber Industry JSC

16. Strategic Recommendation

17. About Us & Disclaimer

R e s e a r c h M e t h o d o l o g y

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Baseline Methodology:

For the study, TechSci Research gathered information through primary research surveys with leading tiresuppliers based in Philippines, and subsequently, verified information from major distributors of automobiletires in the country. We also put through an exhaustive search of credible paid databases such as BusinessWeek, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudentlyevaluated all the collected information and presented the same in chronological order to depict a meaningfuland clear picture of the tire market in Philippines.

While compiling the data, we have also cross checked all the collected information from multiple sources anddata warehouses, so as to present the most accurate and precise information of the concerned industry. Weuse innovative business model that focuses on improving productivity, while ensuring creation of high-qualityreports. The reports are prepared with in-depth primary research, followed by exhaustive secondary research.

Primary Research - Companies Interviewed

S. No. Company Name

1 Yokohama Philippines

2 Michelin

3 Toyo Tires

4 Kumho Tire

5 Goodyear

Few of Sources of Secondary Research

S. No. Secondary Source

1 ASEAN AUTOMOTIVE FEDERATION

2 Bureau of Customs

3 Department of Trade and Industry

4 OICA

6 Automobile Association Philippines

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For the preparation of Philippines tire report, bottom up model has been used, which has been later on been crossvalidated by using top down approach.

Vehicle Sales & Fleet Size

The basic data points needed for the analysis of Philippines tire market are the historical, current and forecast figuresfor vehicle production, sales and fleet size. Data for fleet size has been extracted through various governmentsources and credible data portals. TechSci Research also maintained a database for vehicle production, sales and fleetsize for each vehicle segment (passenger cars, commercial vehicles and two-wheelers), which is regularly updatedthrough various primary research surveys and secondary sources such as automotive associations & governmentpublications.

Tire Demand

Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet size and historicalvehicle sales. The replacement demand is therefore extracted by multiplying the vehicle fleet with the replacementtire ratio, which is obtained by conducting a series of surveys with car owners to understand the frequency of tirereplacement as it varies from one country to another depending upon factors such as road conditions, climate,economic and regulatory policies applicable in a country. The replacement ratio is expressed as a percentage. Forexample, in case of passenger cars, replacement ratio is considered to be 100% if four tires are replaced per vehicleper year.Example for Passenger Car replacement tire demand calculation:

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique i.e.multiple rounds of telephonic interviews conducted with tire companies/dealers in Philippines. The information thusgathered through primary interviews was cross-verified through industry experts and secondary sources such asannual reports and paid databases to generate meaningful results.

Passenger

Car Fleet

Size

(Volume)

X

Replacement

Ratio

(in %)

X No. of Tires =Replacement

Tire Demand

X X X% X X = X tires

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Tire Trade (Imports & Exports)

TechSci Research has analyzed tire imports and exports in Philippines. The data has been gathered throughgovernment agencies and credible paid databases. The total tire trade has been segmented in accordance withbelow mentioned HS codes:

The imports and exports figures for each HS Code have been depicted in Value (USD Million).

Tire Brands Mapping

TechSci Research has mapped all tire brands being sold in Philippines. TechSci Research has gathered thisinformation through primary and secondary research. The brands being sold in Philippines are imported fromother countries. The objective behind brand mapping is to understand more about the competition such asmarket share, current targets, future strategy, etc.

Forecast

For forecasting the numbers, we have used time series analysis along with regression analysis, followed byjudgmental analysis.

HS Code Description Tire Type

XXXX Motor Cars Passenger Car Tire

XXXX Bus or Lorries Tire Commercial Vehicle Tire

XXXX Motorcycle Tire Two-Wheeler Tire

XXXX Tire Having a "Herring Bone"

OTR Tire

XXXX Tire Having a "Herring Bone"

XXXX Tire Having a "Herring Bone"

XXXX Tire Having a "Herring Bone"

XXXX Tire Having a "Herring Bone"

XXXX Agriculture Tire

XXXX Construction/Industrial Tire

XXXX Construction/Industrial Tire

XXXX Others Other Tire

I n d u s t r y B r i e f

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Philippines Tire Market to Beat $ 900 Million by 2021

Surging automotive sales and favorable trade environment anticipated to drive sales of tire in Philippines through 2021

According to TechSci Research report, “Philippines Tire Market Forecast & Opportunities, 2021”, the country’s tire market isforecast to cross $ 900 million by 2021. Major factors positively influencing demand for tires in the Philippines include rapidinfrastructure development, implementation of favorable policies by the government coupled with growing disposableincome of vehicle owners, which increased from US $ 6,890 in 2011 to US $ 8,450 in 2014. Moreover, rising vehicle sales inthe country on the back of introduction of a wide variety of new vehicle models in the domestic market, is anticipated to fuelgrowth in demand for tires in the country over the next five years. With a volume share of over 50% in the Philippines tiremarket, two-wheeler tire segment dominated the overall tire market in the Philippines in 2015, followed by commercialvehicle tires and passenger car tires. Due to availability of the easy finance options, demand for two-wheelers as well aspassenger cars in the country grew during 2011-2015.

As of 2015, tire market in the Philippines was majorly concentrated in three provinces, i.e. National Capital region, SouthernTagalog region and Central Luzon region. With a cumulative volume share of more than 55% in 2015 in the Philippines tiremarket, these regions dominated the country’s tire market and a similar trend is expected to continue during 2016-2021.Moreover, with implementation of the Motor Vehicle Development Plan (MVDP), OEMs are being offered various incentives,as well as tax and other fiscal benefits to establish automotive manufacturing / assembling plants in the country, on the backof which, a growing number of companies are setting up their assembling plants in the Philippines. Few of the leading tiremanufacturing companies operating in the country include Bridgestone, Goodyear, Yokohama, Michelin, Toyo, Kumho, ChengShin, Zhongce Rubber, Federal, etc. However, as only one tire manufacturing facility is present in the country, the domesticdemand for tires in the Philippines is majorly met through imports.

“With surging GDP, Philippines is expected to attract huge foreign investments in the coming years. Moreover, governmentspending on the country’s construction as well as infrastructure sector is expected to grow through 2021. With anticipatedgrowth in the country’s infrastructure sector, demand for commercial vehicles is expected to increase in the coming years,which is forecast to further boost sales of tires in the country over next five years.”, said Mr. Karan Chechi, Research Directorwith TechSci Research, a research based global management consulting firm.

S a m p l e D a t a - S n a p s h o t

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Philippines Tire Market Size, By Value (USD

Million), By Volume (Million Units), 2011-2021F

35

79

1115

1719

21 23 25

2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F2021F

Value (USD Million) Volume (Million Units)

1 2 3 4 57 8 9 10 11 12

Philippines Tire Market Share, By

Vehicle Type, By Volume, 2015-2021F

33% 33% 33% 33% 33% 33% 33%

34% 34% 34% 34% 34% 34% 34%33% 33% 33% 33% 33% 33% 33%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Passenger Car Commercial Vehicle

Philippines Tire Market Share, By

Company, By Volume, 2015-2021F

10% 10% 10% 10% 10% 10% 10%

20% 20% 20% 20% 20% 20% 20%

20% 20% 20% 20% 20% 20% 20%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Michelin Chinese Brands Yokohama

33% 33% 33% 33% 33% 33% 33%

34% 34% 34% 34% 34% 34% 34%33% 33% 33% 33% 33% 33% 33%

Bridgestone Others* Goodyear

Philippines Replacement Tire Market Size, By Value

(USD Million), By Volume (Million Units), 2011-2021F

35

79

1115

1719

21 23 25

2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F2021F

Value (USD Million) Volume (Million Units)

1 2 3 4 57 8 9 10 11 12

Philippines Two Wheeler Tire Market

Share, By Demand Category (OEM Vs.

Replacement), 2011-2021F

40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40%

60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%

OEM Demand Replacement Demand

Philippines Commercial Vehicle Tire Market Share, By

Vehicle Type, By Volume, 2015-2021F

10% 10% 10% 10% 10% 10% 10%

20% 20% 20% 20% 20% 20% 20%

30% 30% 30% 30% 30% 30% 30%

40% 40% 40% 40% 40% 40% 40%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Heavy Truck & Bus Light Truck

Asian Utility Vehicle (AUV) Light Commercial Vehicle (LCV)

CV, 33.00%

PC, 34.00%

Two Wheeler, 33.00%

Philippines Tire Imports Share, By

Vehicle Type, By Value, 2014 Philippines Commercial Vehicle

Tire Imports, By Value, 2010-2014

(USD Million)

1

2

3

4

5

2010 2011 2012 2013 2014

R e p o r t O r d e r i n g

To View Sample OR Purchase Report

Report Price

Report Name: Philippines Tire Market Forecast & Opportunities, 2021

License Type Price

Electronic Access - Single User License $2500

CD-ROM Mail Delivery $3000

Hard Copy Mail Delivery $3500

Electronic Access - Multi-User License $5000

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A b o u t U s & D i s c l a i m e r

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TechSci Research – North America

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Email: [email protected]

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About Us

TechSci Research is a global market research and consulting company with offices in US, UK and India. TechSci Research provides

market research reports in a number of areas to organizations. The company uses innovative business models that focus on improved

productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-

specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global

industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation

of the opportunities available in the market.

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Disclaimer

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made thatit is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sourcesincluding which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of anyinformation and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that ithas no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can changewithout notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage ofthe same for purpose other than internal will require prior approval of TechSci Research.

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