Bangladesh Tyre Market To Grow At 9% Till 2020
A recent report published by TechSci Research predicts an over 9% CAGR growth of tyre market in Bangladesh until 2020. The report titled “Bangladesh Tyre Market Forecast & Opportunities, 2020”, credited to rise in automobile sales, ongoing improvements in public infrastructure, and growth-oriented government policies for this growth. With the econ0mic growth and rise it purchasing power of people automobile and tyre sales in Bangladesh are expected to grow in the coming years as well as growing investments and joint ventures of foreign market players. Several global tyre giants have also expressed interest in making significant investments by setting up their manufacturing units in the country.
Rise in automobile sales, improvement in public infrastructure, and growth in purchasing power to drive tyre sales in Bangladesh over the next five years.
The reports says: two wheeler tyre remains the dominant segment in overall tyre market in Bangladesh and the trend is expected to remain same over the forecast period as majority of the country’s population comes under low income group.
“Bangladesh largely lacks in tyre manufacturing set ups, which leads to tyre imports from other countries as the only feasible option to cater the growing demand,” claims Mr. Karan Chechi, Research Director at TechSci Research, “The contry largely imports tyre from China, India, Indonesia, Thailand and Japan. This reflects an opportunity for local companies to set up indigenous manufacturing base in Bangladesh and also enables foreign players to set up their localized production facilities to capture significant market. Increase in local manufacturing units will generate employment as well as help Bangladesh’s infrastructure and economy to grow.”
Source: Yahoo news