Australian Tire Market Reaching $2.8B
According to TechSci Research report, "Australia Tyre Market Forecast & Opportunities, 2020", tire market in Australia is forecast to reach around US$ 2.8 billion in 2015. Increase in industrialization, increasing automobile fleet, development of online sales channels as mainstream distribution channel, and shortening replacement period of tires are few of the major factors driving sales of tires in Australia. In 2014, passenger car tire segment dominated the Australia tire market, followed by light commercial vehicle tire and medium and heavy commercial vehicle tire segments. Two-wheeler and OTR tire segments cumulatively accounted for only a small share in the Australia tire market. With high concentration of vehicles in New South Wales, Victoria, and Queensland, these three regions account for more than three-fourths of tire sales in the country.
Bridgestone, Goodyear & Dunlop Tyres, and Yokohoma are few of the leading players operating in Australia tire market. However, with no tire manufacturing facility in Australia, the country is completely dependent on imports to meet its domestic tire demand. Companies such as Michelin, Kumho, Toyo, Hankook, Continental and various Chinese tire brands are expected to offer stiff competition to established players during the forecast period. However, Bridgestone, Goodyear & Dunlop, and Yokohoma are forecast to continue their dominance in the country's tire market through 2020, due to high consumer preference for tires from these companies, according to the report’s authors.
"With introduction of the National Tyre Stewardship Scheme by Federal Government of Australia in 2014, demand for retreaded tires in Australia is projected to increase during 2015-20. The scheme was implemented in association with tire companies, in order to find solutions for end-of-life tires and increase awareness regarding safe and effective disposal of old tires," said Karan Chechi, research director with TechSci Research.