Vietnam Automotive Tires Market

Vietnam Automotive Tires Market Overview

Automotive industry in Vietnam is witnessing significant growth in the recent years. The country has hosted several automotive production and assembly projects like in 2019, first automobile manufacturing factory that was established by a Vietnamese company. This development in the automotive industry is supported with the aim of the government to assist the regional market and meet the domestic demand of the country. According to CCI France International, the growth rate of the car ownership in Vietnam is 10.5% and is projected to increase to 12-15% over the next decade.

Major Vietnam Automotive Tires Market Drivers

The key factor which is proliferating the growth of the market includes the growth in the number of exports of the automotive tires to various countries such as the United States, Australia, and Southeast Asia, among others to meet the rising demand of the companies. Moreover, increasing vehicle sales in the country is leading to the rise in the production of automobiles in the country, which is further accelerating the demand for the automotive tires over the forecast period. As per the Vietnam Automobile Manufacturers Association, the car market in Vietnam has increased by 12% as compared to 2018 and 322,322 units were sold in the year 2019. Vietnam’s automobile industry development through 2025 strategy targets to increase the manufacturing of passenger cars and trucks and also to export around 20,000 locally made cars by 2020 and 90,000 by 2035.

The increasing investments by various companies to establish plants for the manufacturing of automotive tires in the country is a prominent factor that is influencing the growth of the market. For instance, in 2019, Guizhou Tyre Co. Ltd., a Chinese tire manufacturer planned to establish a wholly owned subsidiary called Advance Tyre in Vietnam. Through this subsidiary, the company aims to expand the construction of the bus and truck tire plant that was under construction in the country.

Restraint in the Vietnam Automotive Tires Market

The factors that are responsible for hindering the growth of the Vietnam automotive tires market include the imposition of anti-subsidy tax on the Vietnamese tires by the US and the shortage of the rubber raw materials in the country.

Type – Segment Analysis

Based on the type, the radial segment is expected to grow at a higher CAGR during the forecast period. The factor that is fuelling the growth of the market is the increase in the penetration of automotive with this type of tires as a result of several advantages provided such as the ability to decrease the fuel consumption owing to less rolling resistance, enhanced gripping & puncture resistance, and increased flexibility, among others.

Vehicle Type – Segment Analysis

On the basis of vehicle type, the passenger car segment is anticipated to grow at a higher CAGR during the forecast period. The key factors which are proliferating the growth of the market in this segment include the growth in the adoption of passenger cars by the people owing to the increasing purchasing power and strong GDP growth in the country. According to Vietnam Automobile Manufacturers Association (VAMA), in 2019, 237,221 passenger cars were sold, this was an increase of 20 percent from the previous year. In addition to, the cars prices are projected to decrease in the upcoming years which will lead to the rise in the adoption of this vehicle type in the country.

Key Developments: 

• • In 2020, Vietnam Rubber Group JSC planned to invest in the tube and tyre production through mergers & acquisitions over the affiliate companies of the Vietnam Chemical Group. The company is currently involved in five main activities of processing & planting rubber latex, processing rubber industrial products, and processing rubberwood, among others.
  • In 2018, Cooper Tire & Rubber Company entered into a joint venture with Sailun Vietnam for establishing a manufacturing plant having the capacity to develop more than 2 million bus and truck radial tires per year. 

Segments covered in the Report:

The Vietnam automotive tires market has been segmented on the basis of type, season, vehicle type, rim size, and distribution channel. Based on type, the market is segmented into bias and radial. Based on the season, the market is segmented into summer, winter, and all seasons. Based on vehicle type, the market is segmented into the passenger car, LCV, buses, and trucks. Based on rim size, the market is segmented into less than 15 inch, 15-20 inch, and more than 20 inch. Based on the distribution channel, the market is segmented into OEM and aftermarket. 

Report Coverage	Details
Market Revenues (2022)	USD Million
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Type, By Season, By Vehicle Type, By Rim Size, and By Distribution Channel
Regional Coverage	Vietnam
Companies Profiled	Profiles of Top 10 Major Companies Operating in “Vietnam Automotive Tires Market”
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Vietnam Automotive Tires Market by Type

• • Bias
  • Radial

Vietnam Automotive Tires Market by Season

• • Summer
  • Winter
  • All Seasons

Vietnam Automotive Tires Market by Vehicle Type

• • Passenger Car
  • LCV
  • Buses
  • Trucks

Vietnam Automotive Tires Market by Rim Size

• • Less than 15 Inch
  • 15-20 Inch
  • More than 20 Inch

Vietnam Automotive Tires Market by Distribution Channel

• • OEM
  • Aftermarket