vietnam tire market forecast 2021 - brochure

Vietnam Tire Market Forecast & Opportunities , 2021

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

© TechSci Research

2

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

S. No. Contents

1. Product Overview

2. Research Methodology

3. Analyst View

4. Vietnam Tire Market Outlook

4.1. Market Size & Forecast

4.1.1. By Value & Volume

4.2. Market Share & Forecast

4.2.1.By Vehicle Type (Two-Wheeler, Passenger Car, Light Truck, Medium Truck, Heavy Truck, Bus, and OTR)

4.2.2. By Tire Type (Radial Vs. Bias)

4.2.3. By Company

4.2.4. By Region

4.2.4. By Demand Category (OEM Vs. Replacement)

5. Vietnam Two-Wheeler Tire Market Outlook




5.2.1. By Vehicle Type (Motorcycle Tire, Scooter Tire, and Electric & Hybrid Two-Wheeler Tire)


5.3. Popular Tire Sizes

6. Vietnam Passenger Car Tire Market Outlook



© TechSci Research

3


S. No. Contents



6.2.2. By Vehicle Type (Sedan, SUV, Hatchback & Hybrid)


7. Vietnam Light Truck Tire Market Outlook




8. Vietnam OTR Tire Market Outlook




8.2.1. By Vehicle Type (Agriculture Tire, Construction, Mining & Industrial Tire, and Others)


9. Vietnam Bus Tire Market Outlook






© TechSci Research

4


S. No. Contents

10. Vietnam Heavy Truck Tire Market Outlook







11. Vietnam Medium Truck Tire Market Outlook







12. Supply Chain Analysis

13. Import-Export Analysis

14. Market Dynamics

14.1. Drivers

14.2. Challenges

15. Market Trends & Developments

15.1. Radial Tires: A Popular Choice of Vehicle Owners

© TechSci Research

5


S. No. Contents

15.2. Increasing Online Tire Sales

15.3.Easy Availability of Natural Rubber Attracting Foreign Companies to Set Up Manufacturing Plants in Vietnam

15.4. Surging Tire Exports

15.5. Rising Usage of New Tire Technologies

15.6. Increasing Demand for Mini Bus Tires

16. Policy & Regulatory Landscape

17. Vietnam Economic Profile

18. Competitive Landscape

18.1. Danang Rubber Joint Stock Company

18.2. The Southern Rubber Industry JSC

18.3. Bridgestone Tire Sales Vietnam Limited Liability Company

18.4. Yokohama Tyre Vietnam Inc.

18.5. Michelin Vietnam Co., Ltd

18.6. Sao Vang Rubber Joint Stock Company

18.7. Kumho Tire Co., Ltd. Vietnam

18.8. Continental Ag

18.9. Goodyear Vietnam Co. Ltd

18.10. Cheng Shin Rubber (Vietnam) Ind. Ltd

19. Strategic Recommendations

20. About Us & Disclaimer

© TechSci Research

6

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

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

Vehicle Segment Sub-Segment Customer Segment

Passenger Car

Sedan

IndividualsSUV

Hybrid

Hatchback/Small Car

Light Truck -NA-Transport Companies, Logistics,

Micro Small and Medium Enterprises

Medium Truck -NA-Logistics Companies, Construction

Companies, etc.

Heavy Truck -NA-Logistics Companies, Construction

Companies, etc.

Two-Wheeler

Motorcycle

IndividualsScooter

Electric & Hybrid Two-Wheeler

Off-the-Road Vehicle

Mining, Construction and Industrial Equipment

Mining Companies, Construction companies and Industries

Agriculture Vehicle Farmers

Others (Go-cart Vehicles, Golf Cart Vehicles, Special Purpose Vehicles, etc. )

Sports Companies, Adventure Activity Industries, etc.

©TechSci Research

7

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

A

C

B

Primary Research

Company Analysis

Desk Research

Identifying Key Opinion

Leaders

Questionnaire Design

In-depth Interviews

Market Participants

Key Strengths

Tire Portfolio

Recent Developments

Market Changing

Aspects/Dynamics

Government Policies

Final Conclusion

LinkedIn TechSci Internal

database

Factiva Hoovers

Paid Sources

Company Website Company Annual

Reports White Paper Study Financial Reports Investor

Presentations Regulatory Body, Associations, etc.

Secondary Research

Primary Research

Data Collection

Data Filter& Analysis

Research &Intelligence

ActionableInsights

BusinessSolution

•In-depth secondary research was used todetermine top players in Vietnam tire market,overall market size and to identify topautomobile tire manufactures.

Market Profiling

•In order to conduct industry experts interviews,TechSci Research formulated a detailedquestionnaire.

Formulating Questionnaire

•List of industry players (manufacturers),distributors, retailers and industry specialistswas developed.

Developing list of respondents

•TechSci Research conducted interviews withindustry experts, industry players, for datacollection and verification.

Data Collection

•Data obtained as a result of primary andsecondary research was validated throughrigorous triangulation.

Data Validation

•The data was scrutinized using MS-Excel andstatistical tools such as Time Series analysis, etc.to obtain qualitative and quantitative insightsabout the Vietnam tire market.

Data Analysis

© TechSci Research

8


Baseline Methodology:

For the study, TechSci Research has gathered information through primary research surveys withleading tire companies operating in Vietnam. We also put through an exhaustive search of credible paiddatabases such as Business Week, Factiva, Hoovers, etc., including our internal database. Our team ofanalysts has then prudently evaluated all the collected information and presented the same inchronological order to depict a meaningful and clear picture of the tire market in Vietnam.

While compiling the data, we have also cross checked all the collected information from multiple sourcesand data warehouses, so as to present the most accurate and precise information of the concernedindustry. We use innovative business model that focuses on improving productivity, which ensuringcreation of high-quality reports. The reports are prepared with in-depth primary research, followed byexhaustive secondary research.

Few of the Companies Interviewed Few of Sources of Secondary Research

S. No. Company Names

1. Kumho Tire Co., Ltd. Vietnam

2. Danang Rubber Joint Stock Company

3 Yokohama Tyre Vietnam Inc.

4. Michelin Vietnam Co., Ltd.

5. Kubota Vietnam Co., Ltd .

6. Truong Hai Automobile Co., Ltd.

7. Hino Motors Vietnam

8. Fuso Vietnam

S. No. Secondary Sources

1. ASEAN Automotive Federation

2. OICA

3Vietnam Automobile Manufacturers’ Association

4.United States of America Department of Commerce

5. World Bank

6. International Monetary Fund

7. UN Comtrade

8. Vietnam Customs

© TechSci Research

9


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

Vehicle Sales & Fleet Size

The basic data points that are needed for the analysis of Vietnam tire market are the historical, currentand forecast figures for vehicle sales and fleet size. The data for vehicle sales and fleet size has beenextracted through various secondary sources and credible data portals. TechSci Research has alsomaintained a database for vehicle sales and fleet size for each vehicle segment (passenger cars, lighttrucks, medium & heavy trucks, two-wheelers, & off-the-road vehicles), which is regularly updatedthrough various primary research surveys and secondary sources such as automotive associations &government publications.

Vehicle Production

TechSci has gathered vehicle production data from credible sources such as ASEAN AutomotiveFederation and OICA. TechSci Research has also maintained a database for vehicle production for eachvehicle segment (passenger cars, light trucks, medium & heavy trucks, two-wheelers, & off-the-roadvehicles), which is regularly updated through various primary research surveys and secondary sourcessuch as automotive associations & government publications.

Tire Demand

OEM Tire Sales

OEM tire demand in Vietnam is directly dependent on country’s vehicle production. The OEM demand istherefore extracted by multiplying the vehicle produced with the number of tires fitted in the vehicle. Forexample, in case of passenger car, five tires are fitted by the OEM during manufacturing process.

© TechSci Research

10


Tire Demand

Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on country’s vehicle fleet size andhistorical vehicle sales. The replacement demand is therefore extracted by multiplying the vehicle fleetwith the replacement tire ratio, which is obtained by conducting a series of surveys with car owners tounderstand the frequency of tire replacement as it varies for different countries depending upon factorssuch as road conditions, climate, economic and regulatory policies applicable in a country. Thereplacement ratio is expressed as a percentage. For example, in case of passenger cars, replacementratio is considered to be 100% if four tires are replaced per vehicle per year.

Example for passenger car replacement tire demand calculation:

Passenger Car

Fleet Size

(Volume)

XReplacement Ratio

(%)X No. of Tires =

Replacement Tire

Demand

X X 100% X 4 = 400,000 Tires

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphitechnique i.e. multiple rounds of telephonic interviews were conducted with tire companies in Vietnam.The information thus gathered through primary interviews was cross-verified through industry expertsand secondary sources such as annual reports and paid databases to generate meaningful results.

Total Tire Market

OEM Tire Sales +Replacement Tire

Sales= Total Tire Market

© TechSci Research

11


Tire Trade (Import & Export)

TechSci Research has analyzed tire imports in Vietnam. The data has been gathered through credibledatabases. The total tire trade has been segmented in accordance with below mentioned HS codes:

HS Code Description Tire Type

XXXX Motor Cars Passenger Car Tire

XXXX Bus or Lorries Tires Commercial Vehicle Tire

XXXX Motorcycle Tire Two-Wheeler Tire

XXXX Tire Having a "Herring Bone"

OTR Tire





XXXX Agriculture Tire

XXXX Construction/Industrial Tire

XXXX Construction/Industrial Tire

XXXX Others Other Tires

The import figures for each vehicle type (Passenger Car, Commercial Vehicle, Two-Wheeler, & OTR) havebeen depicted in Value (USD Million).

Forecast

For forecasting the numbers, we have used Time Series Analysis along with Regression Analysis,followed by judgmental analysis as certain factors would always differ in Vietnam such as infrastructurecondition, economic outlook, etc.

© TechSci Research

12


Sampling Technique:

While conducting the study, TechSci followed the stratified random sampling technique to shortlist the Key Opinion

Leaders (KOLs) in various tire companies in the country. KOLs, out of the prominent tire companies, were

interviewed to identify the size of Vietnam tire market along with the market shares of leading tire players across

different tire segments.

Sample Size:

KOL No. of Respondents

Personnel in Tire Companies / Tire Dealer & Distributors X

Personnel in Automobile Companies/ Dealers/Distributors

X

Industry experts / Government Bodies (Import Export Department, Associations, etc.)

X

Total X

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

13

Vietnam Tire Market to Cross $ 3 Billion by 2021

According to recently released TechSci Research report, “Vietnam Tire Market Forecast & Opportunities, 2021”,the tire market in Vietnam is projected to cross $ 3 billion by 2021. Over the last five years, Vietnam has emergedas one of the fastest developing economies in the Asia-Pacific region. Increasing automobile production/assembly,expanding fleet size and easy availability of natural rubber are few of the major factors boosting the country’s tiremarket. Several automobile companies in Vietnam are planning to expand their manufacturing capacities in thecoming years. For instance, Truong Hai Automobile Co., Ltd., which is one of the major automobile players inVietnam, plans to invest US$ 1.33 billion over a period of three years to expand the company’s productioncapacity in the country. Another major automobile player operating in the country, Hyundai Thanh Cong, is alsoplanning to establish new plants in Vietnam.

Vietnam construction industry is expected to generate revenues worth US$ 10.76 billion in 2016, and the sector isanticipated to grow at a CAGR of over 10% over the next five years. Apart from the construction sector, thecountry’s logistics industry is also forecast to register healthy growth rate owing to anticipated growth in theMSME sector. Booming construction and logistics sectors are expected to drive robust growth in demand forheavy, medium and light trucks in the country, and consequently boost tire sales as well over the next five years.Vietnam tire market is dominated by two-wheeler tire segment, followed by passenger car tire segment, and thistrend is expected to continue during the forecast period. South Vietnam is the leading regional market for tires inthe country, due to high population density, large vehicle fleet size and high concentration of industries andbusinesses in the region.

“In order to boost the country’s economy, Vietnam is signing trade agreements with various countries across theglobe. For instance, Free Trade Agreement was signed between Vietnam and the European Union in 2015. Underthis agreement, nearly all the trade tariffs between Vietnam and the European Union will beeliminated. Moreover, in 2015, the Government of Vietnam, inked AFTA (ASEAN Free Trade Agreements) withneighboring countries to encourage foreign investments into the country. AFTA is expected to bring down tarifflevied on vehicle imports, which is expected to boost the country’s tire market in the coming years.”, said Mr.Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

https://www.techsciresearch.com/report/vietnam-tire-market-forecast-opportunities-2021/729.html

© TechSci Research

14

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

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Value (USD Billion) Volume (Million Units)

Vietnam Tire Market Size, By Value (USD

Billion), By Volume (Million Units), 2011-2021F 1% 1% 1% 1% 1% 1% 1%

2% 2% 2% 2% 2% 2% 2%3% 3% 3% 3% 3% 3% 3%4% 4% 4% 4% 4% 4% 4%5% 5% 5% 5% 5% 5% 5%6% 6% 6% 6% 6% 6% 6%7% 7% 7% 7% 7% 7% 7%

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

Cheng Shin Rubber Inoue Rubber Vietnam Kumho

Yokohama DRC, CSM & SRC Michelin

Bridgestone

Vietnam Tire Market Share, By Company, By Value, 2011-2021F

Vietnam Two-Wheeler Tire Market Size, By Value (USD

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

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 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

Motorcycle Tire Scooter Tire Electric & Hybrid Two-Wheeler Tire

Vietnam Two-Wheeler Tire Market Share, By

Vehicle Type, By Volume, 2015-2021F

South Vietnam

2015 2021F

X% X%

North Vietnam

2015 2021F

X% X%

Central Vietnam

2015 2021F

X% X%

Vietnam Tire Market Share, By Region, By Value, 2011-2021F

Vietnam Passenger Car Tire Market Share, By

Vehicle Type, By Volume, 2011-2021F

10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

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

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

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Sedan SUV Hatchback Hybrid

Vietnam Light Truck Tire Market Size, By Value (USD

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

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F


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

To View Sample OR Purchase Report

Report Price

Report Name: Vietnam 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

15

https://www.techsciresearch.com/sample-report.aspx?cid=729

http://www.techsciresearch.com/report/united-states-radio-taxi-services-market-forecast-and-opportunities-2021/617.html

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

© TechSci Research

TechSci Research – North America

708 Third Avenue, Manhattan,

New York, United States

Tel: +1- 646- 360- 1656

Email: [email protected]

www.techsciresearch.com

About Us :

TechSci Research is a global market research and consulting company with offices in the US, the 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

improving 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.

Related Reports

Global Commercial Vehicle Tire Market By Vehicle Type, By Demand Category, By Region, Competition

Forecast & Opportunities, 2021

Global Commercial Drone Market By Drone Type, By Application, By Region, Competition Forecast &

Opportunities, 2015 - 2021

India Tire Market Forecast & Opportunities, 2021

Partial List of Clients

Disclaimer :The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is madethat it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from varioussources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness ofany information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially statesthat it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts,can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internalconsumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

TechSci Research – Europe

54, Oldbrook, Bretton,

Peterborough,

United Kingdom



TechSci Research – Asia-Pacific

B - 44, Sector - 57, Noida, National

Capital Region, U.P. - India

Tel: +91-120-4523900



16