China, Japan, and India are ranked first, third, and fifth in terms of automobile sales, as per the data of Organisation Internationale des Constructeurs d’Automobiles (OICA), with 2019 sales figures of 25,796,931, 5,195,216, and 3,816,858 units, respectively. As a result, the global automotive industry, earlier a monopoly of the Western world, has now come to be dominated by Asia-Pacific (APAC). The reasons for this are the rapid economic growth in these nations and shift of auto plants from Europe and North America to here.
Thus, with vehicle production and sales continuing to boom in the region, P&S Intelligence expects the APAC automotive tire market to reach 1,826.8 million unit sales by 2024 from 1,080.5 million units in 2018, at a 9.1% CAGR between 2019 and 2024. The reason for this is obvious: tires are as essential to automobiles as flavor is to food. Tires are the actual component that allow a vehicle to move. Wrapped around the wheel rim, they, additionally, withstand the weight of the vehicle and help cushion some degree of movement vibrations and jerks.
This is the reason the tire replacement rate is increasing with people wanting to use their vehicles longer. The condition of the tire is a major deciding factor in the fuel economy/mileage of the vehicle. If the tire is worn out, the friction and rolling resistance increase, which is why the engine has to work harder to push the vehicle across the same distance as with a tire in its prime condition. Hence, more fuel is burned for going the same distance, which relates to a lower fuel economy.
Thus, having tires in a good condition also reduces the wear on the engine, which automatically increases the latter’s life. A high fuel economy and longer vehicle life aren’t the only reasons regular tire change is essential; it also plays a key role in keeping the environment clean. This is because with more fuel being burned, greenhouse gas (GHG) emissions increase too, which are already the biggest reason for all the environment conservation concerns these days.
For this very reason, new materials are being created for tires that can help in not only reducing the rolling resistance but also the vehicle weight, as the weight also plays a key role in deciding the fuel economy and amount of GHG emissions. Moreover, natural rubber reserves are shrinking, and the price of this commodity keeps fluctuating, which is also why tire companies are looking at new polymers and elastomers. A new reinforced filler technology, dual fillers, improved grades of silica, and nanotechnology are now being used to manufacture these automotive components.
Thus, tire demand will keep rising with the growing automotive production and sales across APAC.
Get More Details APAC Automotive Tire Market Competitive Landscape
