South Korea Tyre Market Forecast and Opportunities, 2020

South Korea has emerged as a major market for automotive tyres in Asia-Pacific over the last few years. On account of significant industrial growth, the country’s automotive industry has been flourishing at a rapid pace. This is evident from the fact that South Korea is the fifth largest passenger car manufacturer in the world. As a result, the country has been registering significant growth in tyre volume sales over the last five years. Growing vehicle exports, increasing adoption of electric vehicles and favorable government initiatives are expected to propel the market over the next five years. However, the country lacks in indigenous tyre manufacturing units due to scarcity of natural rubber, and hence, depends largely on natural rubber imports from Thailand, Indonesia, Vietnam, Malaysia and the Philippines.

According to “South Korea Tyre Market Forecast & Opportunities, 2020”, the tyre market in South Korea is forecast to reach around US$ 5 billion in 2017. Growing vehicle exports, increasing adoption of electric vehicles and favorable government initiatives are expected to propel the market over the next five years. With a majority share in South Korea’s tyre market, the passenger car tyre segment is the most dominant tyre segment in the country’s tyre market. Since major global automobile manufacturers like Hyundai, General Motors, Renault Samsung, Daelim and Doosan have a significant presence in South Korea, the demand for tyres from the OEM segment exceeds replacement sales. Northern region comprising Seoul, Incheon, Gyeonggi province and Gangwon province is the largest tyre market in South Korea as the region is the political and industrial hub of the country, which makes it an attractive investment destination for leading global players operating in diverse industry segments including automobile and allied industries. “South Korea Tyre Market Forecast & Opportunities, 2020” discusses the following aspects about the tyre market in South Korea:

• South...