sri lanka tire market 2021 brochure

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

Sri Lanka Tire MarketForecast and Opportunities , 2021

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

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Vehicle Segment Sub-Segment Customer Segment

Passenger Car

Hatchback

IndividualsSedan

SUV

Light Commercial Vehicle

Mini BusTransport Companies, Logistics, Small Business Entrepreneurs, Delivery Services, Government

Pick Ups

Vans

Medium & Heavy Commercial Vehicle

Medium Commercial Vehicle

Logistics, SMEs, Construction

Heavy Commercial Vehicle

OTR (Off-the-Road) Vehicle

Agriculture Vehicles Farmers, Mining companies, ConstructionCompaniesMining & Construction Vehicles

Two-WheelerMopeds

Individuals, Delivery ServicesMotorcycles

Three-WheelerPassenger Carrier

Individuals, Delivery ServicesLoad Carrier

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

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

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S. No. Contents

1. Research Methodology

2. Analyst View

3. Product Overview

4. Sri Lanka Tire Production Overview

5. Sri Lanka Tire Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value & Volume

5.2. Market Share & Forecast

5.2.1. By Vehicle Type (Passenger Car, LCV, 2W, 3W, M&HCV and OTR)

5.2.2. By Company

5.2.3. By Region

6. Sri Lanka Two Wheeler (2W) Tire Market Outlook

6.1. Market Size and Forecast

6.1.1. By Value and Volume

6.2. Market Share and Forecast

6.2.1. By Vehicle Type (Motorcycle and Moped)

7. Sri Lanka Three Wheeler (3W) Tire Market Outlook




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S. No. Contents

8. Sri Lanka Medium & Heavy Commercial Vehicle (M&HCV) Tire Market Outlook




8.2.1. By Vehicle Type (HCV and MCV)

9. Sri Lanka Passenger Car (PC) Tire Market Outlook




9.2.1. By Vehicle Type (Hatchback, Sedan and SUV)

10. Sri Lanka Light Commercial Vehicle (LCV) Tire Market Outlook




10.2.1. By Vehicle Type (Vans, Pickups & Light Trucks and Mini Bus)

11. Sri Lanka Off-The-Road (OTR) Tire Market Outlook





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S. No. Contents

11.2.1. By Vehicle Type (Agriculture Vehicle and Construction & mining Vehicle)

12. Import-Export Analysis

13. Market Dynamics

13.1. Drivers

13.2. Challenges

14. Market Trends & Developments

14.1. Growing Demand for OTR Tires

14.2. Increasing Automotive Sales

14.3. Rapidly Growing Online Tire Sales

14.4. Rising Demand of Retread Tires

14.5. Increasing Popularity of Chinese Tires

15. Policy & Regulatory Landscape

16. Sri Lanka Economic Profile

17. Competitive Landscape

17.1. CEAT-Kelani International Tyres (Pvt.) Limited

17.2. Apollo Tyres Ltd.

17.3. MRF Limited

17.4. Cheng Shin Rubber Industry Co. Ltd.

17.5. Global Rubber Industries, Pvt. Ltd.

17.6. Faga Tyres Private Limited


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S. No. Contents

17.7. Bridgestone Corporation

17.8. Samson Rubber Industries (Pvt) Ltd

17.9. Kumho Tire Co.

17.10. Goodyear Tire & Rubber Co.

18. Strategic Recommendations

19. About Us & Disclaimer

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

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Baseline Methodology:

For the study, TechSci Research gathered information through primary research surveys with leading tiresuppliers based in Sri Lanka, and subsequently, verified information from major distributors of automobiletires in the country. We also put through an exhaustive search of credible paid databases such as BusinessWeek, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudentlyevaluated all the collected information and presented the same in chronological order to depict a meaningfuland clear picture of the tire market in Sri Lanka.

While compiling the data, we have also cross checked all the collected information from multiple sources anddata warehouses, so as to present the most accurate and precise information of the concerned industry. Weuse innovative business model that focuses on improving productivity, while ensuring creation of high-qualityreports. The reports are prepared with in-depth primary research, followed by exhaustive secondary research.

Primary Research - Companies Interviewed

S. No. Company Name

1 MRF Tyres

2 Bridgestone

3 Autodrome PLC

4 GRI Tires

5 Ceat Kelani

Few of Sources of Secondary Research

S. No. Secondary Source

1 Department of Motor Traffic

2 Department of Customs

3 Department of Commerce

4 OICA

6Rubber Development Department of Sri

Lanka


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For the preparation of Sri Lanka tire report, bottom up model has been used, which has been later on cross validatedby using top down approach.

Vehicle Sales & Fleet Size

The basic data points that are needed for the analysis of Sri Lanka tire market are the historical, current and forecastfigures for vehicle production, sales and fleet size. Data for fleet size has been extracted through various governmentsources and credible data portals. TechSci Research also maintained a database for vehicle production, sales and fleetsize for each vehicle segment (passenger cars, light commercial vehicle, medium & heavy commercial vehicles, two-wheelers & off-the-road vehicles), which is regularly updated through various primary research surveys andsecondary sources such as automotive associations & government publications.

Tire Demand

Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet size and historicalvehicle sales. The replacement demand is therefore extracted by multiplying the vehicle fleet with the replacementtire ratio, which is obtained by conducting a series of surveys with car owners to understand the frequency of tirereplacement as it varies from one country to another depending upon factors such as road conditions, climate,economic and regulatory policies applicable in a country. The replacement ratio is expressed as a percentage. Forexample, in case of passenger cars, replacement ratio is considered to be 100% if four tires are replaced per vehicleper year.Example for Passenger Car replacement tire demand calculation:

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique i.e.multiple rounds of telephonic interviews were conducted with tire companies/dealers in Sri Lanka. The informationthus gathered through primary interviews was cross-verified through industry experts and secondary sources such asannual reports and paid databases to generate meaningful results.

Passenger

Car Fleet

Size

(Volume)

X

Replacement

Ratio

(in %)

X No. of Tires =Replacement

Tire Demand

X X X% X X = X tires


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Tire Trade (Imports & Exports)

TechSci Research has analyzed tire imports and exports in Sri Lanka. The data has been gathered throughgovernment agencies and credible paid databases. The total tire trade has been segmented in accordance withbelow mentioned HS codes:

The imports and exports figures for each HS Code have been depicted in Value (USD Million).

Tire Brands Mapping

TechSci Research has mapped all tire brands are being sold in Sri Lanka. TechSci Research has gathered thisinformation through primary and secondary research. The brands being sold in Sri Lanka are imported fromother countries. The objective behind brand mapping is to understand more about competition such as marketshare, current targets, future strategy, etc.

Forecast

For forecasting the numbers, we have used time series analysis along with regression analysis, followed byjudgmental analysis.

HS Code Description Tire Type

XXXX Motor Cars Passenger Car Tire

XXXX Bus or Lorries Tire 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 Tire

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

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Tire Market in Sri Lanka to Grow at 12% CAGR

According to TechSci Research report, “Sri Lanka Tire Market Forecast & Opportunities, 2021”, tire market in SriLanka is forecast to grow at a CAGR of 12.59%, during 2016-2021. Growth in the market is anticipated on account ofrising two-wheeler and three wheeler demand, expanding automobile fleet and favourable fiscal policies. Moreover,backed by stable business environment, sound economic conditions, availability of loans at low interest rates andincreasing motorization rate in the country, the automotive industry in Sri Lanka is anticipated to grow over next fiveyears, which in turn, is expected to boost demand for tires in the country through 2021.

In 2014, tire exports from Sri Lanka were around three times the imports. A major share in the country’s overall tireexports, was accounted for by OTR tires, followed by commercial vehicle tires, passenger car tires and two-wheelertires. Whereas, commercial vehicle tires garnered a major share in the overall tire imports, followed by passenger cartires, OTR and two-wheeler tires.

Two-Wheeler tire segment accounted for the largest share in overall Sri Lanka tire market, in comparison with othertire segments, and the market is anticipated to grow further due to rapidly increasing two-wheeler fleet from 2.10million units in 2010 to 3.36 million units in 2015, exhibiting 9.86% CAGR during 2010-2015. In 2015, motorcycle tiresdominated the two wheeler tire market in the country, however, on account of increasing popularity of mopedsamong consumers, the market share of motorcycles tires in Sri Lanka two wheeler market is projected to decline by2021. CEAT Kelani tires, Global Rubber Industries (GRI) Tires and Faga Tires are few of the major domestic tiremanufacturers operating in the Sri Lanka tire market; while a few global brands operating in the country areGoodyear, Bridgestone, MRF Tires, Apollo, etc.

“Sri Lanka’s tire market is a totally replacement driven market due to absence of OEMs in the country. However,Volkswagen has established an assembly plant in the country in August 2014 and plans to establish a local productionfacility in the country in coming years. This is expected to boost tire sales in the country with rising demand for tiresfrom both OEMs and replacement segment.” said Mr. Karan Chechi, Research Director with TechSci Research, aresearch based global management consulting firm monitoring Tire markets in 80 countries.

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

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Sri Lanka Tire Market Size, By Value (USD Million), By

Volume (Thousand Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 12

3 5 7 9 1115 17 19 21 23 25

2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F2021F

Value (USD Million) Volume (Thousand Units)

Sri Lanka Tire Market Share, By Vehicle Type, By Volume, 2011-2021F

4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4%

9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9%14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14%

19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19%

24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24%

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

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

OTR LCV PC M&HCV 3W 2W

Sri Lanka Two-Wheeler Tire Market Size, By Value (USD

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

1 2 3 4 5 7 8 9 10 11 12

3 5 7 9 1115 17 19 21 23 25

2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F2021F


Sri Lanka Tire Market Share, By Company, By Volume, 2015-2021F

25% 25% 25% 25% 25% 25% 25%

25% 25% 25% 25% 25% 25% 25%

25% 25% 25% 25% 25% 25% 25%

25% 25% 25% 25% 25% 25% 25%

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

Others* MRF Apollo CEAT-KelaniSri Lanka Passenger Car

Sales, 2008-2015 (Units)

Sri Lanka Passenger

Car Fleet, 2008-2015

(Thousand Units)

12

34

56

201020112012201320142015

35

79

1113

2010 2011 2012 2013 2014 2015

Sri-Lanka Light Commercial Vehicle Tire Market

Share, By Vehicle Type, By Volume, 2015-2021F

25% 25% 25% 25% 25% 25%25%

25% 25% 25% 25% 25% 25% 25%

50% 50% 50% 50% 50% 50% 50%

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

Mini Bus Pick Ups & Light Trucks Vans

Sri Lanka Off-The-Road Vehicle Tire Market Size, By Value

(USD Million), By Volume (Thousand Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 12

3 5 7 9 1115 17 19 21 23 25

2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F2021F


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

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

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About Us:

TechSci Research is a global market research and consulting company with offices in Canada, Romania and the UK . TechSci Research

provides market research reports in a number of areas to organizations. The company uses innovative business models that focus on

improved 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.

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Disclaimer:

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made thatit is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sourcesincluding which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of anyinformation and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that ithas no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can changewithout notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage ofthe same for purpose other than internal will require prior approval of TechSci Research.

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