Industry Report: Tyres in Thailand

SPEEDA Industry Report

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The report focus on below 3 key segments of the industry which assist users with understanding where to focus on for further deep-dive research.

Report Overview - Tyres in Thailand

Salient Nature/Key Features of the Industry

• Thailand’s tyre industry is largely complemented by country’s prominent automobile industry.

• Thailand is the world’s largest rubber producer, and the abundance of natural rubber along with the country’s relatively cheap and highly skilled labour force are some of the key factors that have made it a high-potential player in the global tyre industry.

Value Chain/Business Model

• Most of the raw materials required by Thailand’s rubber tyre manufacturers are procured from domestic suppliers.

• Tyre manufacturers usually plan to procure rubber blocks at least three months in advance and have long-term tie-ups with block manufacturers to ensure timely supply.

• Rubber tyres are domestically dispatched to the replacement (vehicle dealers, car maintenance centres, or repair shops) and OEM (automobile manufacturing/assembly plants) markets.

• The tyres may also be supplied through authorised distributors.

Value Chain of Thailand's Tyre Industry

Others:

• As of 2021, Thailand was the largest import partner of the US, which is the world’s largest tyre importer. Nevertheless, the US is planning to impose an anti-dumping duty on Thai tyres.

• Tyre production and domestic sales picked up in 2021, after falling steadily over 2018–20. This aligned with domestic automobile and motorcycle production trends during these periods. Nevertheless, the tyre export sector has experienced a general uptrend over 2015–21, slightly dipping in 2020 due to the impact of the COVID-19 pandemic.

• The industry is relatively concentrated, with the top five players accounting for over 60% of market share in 2020, and dominated by global brands such as Michelin, Dunlop, and Bridgestone.

Report Index

Industry Overview

• Tyre Industry Complemented by Country’s Prominent Automobile Industry

• Thailand Largest Tyre Exporter Amongst ASEAN-6, Supported by Strategic Location and Manufacturing Hub Status; FTAs Provide Added Benefit

• Raw Materials Mostly Procured Domestically; Finished Products Dispatched Via Authorised Dealers, Directly to Automobile Manufacturers, Export Markets

Market Trends

• Tyre Production and Domestic Sales Stage Post-COVID-19 Recovery; Exports on Uptrend Fuelled by Rising US Demand

Competitive Trends

• Consolidated Industry Dominated by Foreign Operators:  Top Five Players Control Over Half the Market

• Michelin Siam: Global Tyre Brand Operating in Thailand with Full Foreign Ownership

• Sumitomo Rubber (Thailand): Japanese Wholly Owned Subsidiary

• Thai Bridgestone: Tyre Manufacturer with Mitsubishi Ownership

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