South East Asia Tire Market By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two Wheelers, Three Wheelers, Off-the-Road Vehicles (OTR)), By Tire Construction (Radial, Bias), By Demand Category (OEM, Replacement), By Country, Competition, Opportunities and Forecast, 2020-2030F

Market Overview

South East Asia Tire Market was valued at USD 14.31 Billion in 2024 and is expected to reach USD 20.78 Billion by 2030 with a CAGR of 6.41% during the forecast period. The South East Asia tire market is currently experiencing substantial growth, fueled by the increasing number of vehicles on the road and the rising demand for high-quality tires. This growth can be attributed to the burgeoning automobile sectors in countries such as Indonesia, Thailand, and Malaysia, where the demand for vehicles is on a steady rise. Moreover, the rapid urbanization and notable growth in per capita income across the Country have further propelled the demand for tires, as more individuals can now afford personal vehicles.

Key Market Drivers 

Economic Growth and Increased Vehicle Ownership

Sustained economic growth across South East Asia has led to a remarkable rise in consumer spending and improved living standards, which directly correlates with increased vehicle ownership. As economies transition from lower-income to middle-income status, a larger segment of the population gains access to personal transportation options such as motorcycles, passenger cars, and utility vehicles. Urbanization and industrial development have created a mobile workforce, further contributing to a higher demand for private and commercial vehicles. For instance, In 2024, Thailand led Southeast Asia’s EV market with BYD selling 27,005 electric vehicles, followed by SAIC (MG) at 9,081 and Hozon (Neta) at 7,969 units, outperforming regional competitors.

Expanding Automotive Industry

The South East Asian region has emerged as a strategic hub for automotive manufacturing and assembly, supported by favorable government policies, abundant labor, and proximity to key markets. Countries such as Thailand, Indonesia, and Vietnam have attracted major global automobile manufacturers due to incentives like tax breaks, export facilitation, and infrastructure support. As a result, the region has seen a surge in the establishment of automotive production plants and R&D facilities. This boom has significantly propelled the demand for OEM tires, as every newly manufactured vehicle requires a complete set of tires before hitting the market. Moreover, the localized production of vehicles encourages a self-sufficient ecosystem for tire manufacturing, including local raw material sourcing and regional distribution networks. Beyond the OEM segment, the maturation of the automotive industry contributes to a thriving aftermarket. As vehicles age, the need for high-quality replacement tires becomes crucial. This entire cycle—from manufacturing to aftermarket support—creates a strong interdependence between automotive production and tire sales. The expanding automotive sector not only drives volume growth in the tire industry but also stimulates product innovation and competition, pushing manufacturers to produce higher-quality, customized tire solutions. For instance, Thailand’s Thailand 4.0 strategy offers strong incentives for foreign investment in EV production and infrastructure, targeting 30% zero-emission passenger vehicle production by 2030 and over 85% for buses and trucks by 2035, aiming to produce over one million zero-emission vehicles before 2035.

Consumer Demand for High-Performance Tires

As the middle class in South East Asia continues to grow, so too does the sophistication of consumer preferences, particularly in the automotive sector. Consumers are increasingly demanding high-performance tires that deliver superior control, durability, and ride quality. The shift is especially prominent among drivers of sports cars, SUVs, and premium vehicles, who prioritize grip, cornering ability, braking efficiency, and responsiveness. Rising affluence has enabled buyers to move beyond basic transportation needs toward personalized and performance-oriented vehicle upgrades. High-performance tires, often equipped with advanced tread designs and rubber compounds, are also gaining popularity due to their contribution to safety and driving confidence in diverse road conditions. Urban driving, combined with periods of high-speed highway travel, necessitates tires that can withstand varying speeds and environmental challenges.

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Key Market Challenges

Intense Competition and Price Sensitivity

The South East Asia tire market is highly fragmented, with a wide mix of local, regional, and global players competing for consumer attention and market share. This fierce competition stems from the region’s economic attractiveness, relatively low entry barriers in some countries, and expanding vehicle base, which collectively entice numerous brands to establish operations. However, this saturated market creates significant pricing pressure. Many consumers in the region are extremely price-conscious due to income disparities and economic volatility, which forces tire companies to compete primarily on cost rather than value or brand differentiation. 

Low-Cost Imports and Counterfeit Tires

The inflow of low-cost imported tires and the proliferation of counterfeit tire products are severe challenges that undermine both consumer safety and market integrity in South East Asia. These products typically originate from regions with lax manufacturing standards or enter the market through gray channels that bypass formal regulatory oversight. Low-cost imports may not meet internationally recognized safety and performance standards, yet they are often preferred by budget-conscious consumers who prioritize price over quality. More concerning are counterfeit tires—illegally manufactured to mimic trusted brands—which deceive consumers and can lead to dangerous on-road failures. These substandard products not only damage the reputation of reputable tire manufacturers but also pose a significant threat to public safety and erode consumer trust in the overall market. 

Key Market Trends 

Growing Demand for All-Season Tires

The increasing preference for all-season tires in South East Asia is transforming consumer behavior and influencing tire development strategies. These tires are engineered to provide a balanced performance across a range of weather conditions—dry, wet, and light snow—which makes them particularly appealing in a region that experiences variable climates throughout the year. In tropical areas with monsoon cycles and in higher-altitude zones where temperatures may drop considerably, vehicle owners are increasingly looking for a one-size-fits-all solution. All-season tires offer convenience by removing the need for biannual tire changes, which is both time-saving and cost-effective. For urban drivers and commercial fleets alike, reducing downtime from seasonal tire replacements directly translates to operational efficiency. 

High-Performance and Ultra-High-Performance Tires

A significant trend shaping the South East Asia tire market is the rising demand for high-performance (HP) and ultra-high-performance (UHP) tires, driven by the growing community of car enthusiasts and a surge in premium vehicle ownership. HP and UHP tires are designed for vehicles that demand superior responsiveness, precision handling, and enhanced traction at higher speeds. These tires often feature stiffer sidewalls, advanced tread patterns, and specialized rubber compounds, offering better stability and braking performance. South East Asia's affluent urban consumers, especially those investing in sports sedans, luxury vehicles, and performance SUVs, are increasingly favoring these premium tire categories.

Digitalization and Online Tire Sales

Digital transformation is redefining the tire purchasing experience in South East Asia, with online platforms becoming a key driver of sales. As smartphone penetration and internet access grow, especially in urban centers, more consumers are opting to research, compare, and purchase tires online. E-commerce platforms and dedicated tire retail websites offer unparalleled convenience, extensive product catalogs, transparent pricing, user reviews, and installation scheduling features, enabling consumers to make well-informed decisions from the comfort of their homes.

Segmental Insights

Tire Construction Insights  

South East Asia tire market is segmented by tire construction into radial and bias categories. Radial tire construction, renowned for its durability and fuel efficiency, dominates the market. This is largely due to the high demand for long-lasting tires in the rapidly growing automotive sector in this region, where commuters heavily rely on their vehicles for daily transportation. With the increasing number of cars on the road and the need for better fuel economy, radial tires have become the preferred choice among consumers.

On the other hand, bias tires, while less prevalent, still find application in heavy machinery and off-road vehicles due to their robustness and resistance to damage, particularly in countries with challenging terrain like Indonesia and Vietnam. These tires are designed to withstand rough and uneven surfaces, providing enhanced traction and stability in various industries such as construction, agriculture, and mining. Despite the dominance of radial tires, bias tires play a crucial role in specific sectors where durability and reliability are of utmost importance.  

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Country Insights

Thailand emerged as the dominant region in the South East Asia Tire Market in 2024, driven by its strong position as a regional automotive manufacturing hub. The country hosts a large number of vehicle assembly plants and component manufacturing facilities, making it a central player in both original equipment manufacturer (OEM) and replacement tire demand. The growth of domestic vehicle production has resulted in increased procurement of tires at the manufacturing level, reinforcing Thailand’s leadership in the regional market. Rising exports of vehicles assembled in Thailand have further amplified the need for consistent and high-quality tire supply, enhancing the local market’s volume and value share. For instance, In March 2025, Thailand’s tractor tire market saw strong growth with sales reaching 54,117 units, up from 45,992 units in February 2025, indicating rising agricultural and industrial demand.

Japan remains a mature and technologically advanced tire market in Southeast Asia, driven by high domestic vehicle ownership and a strong export sector focused on premium tires. Leading tire manufacturers continue to innovate with advanced materials and smart tire technologies, maintaining Japan’s competitive edge globally. The country’s focus on sustainability has also led to increased demand for eco-friendly and fuel-efficient tires. In 2024, Japan’s tire market grew by 3.2%, with replacement tire sales accounting for over 60% of total volume. Additionally, export values of Japanese tires rose 5.5% in the first half of 2025, reflecting strong global demand.

Indonesia’s tire market is expanding rapidly, fueled by rising vehicle ownership, especially motorcycles and commercial vehicles. Infrastructure development and government incentives for automotive growth have boosted tire demand across OEM and replacement segments. The country is also emerging as a manufacturing base for regional tire production due to competitive labor costs.

Recent Developments

• In 2025, Powerland launched India’s first road-legal electric ATV, the Tachyon 4x4, priced at about $11,400 USD. It features an 11 kWh battery, 50 hp motor, 800 Nm torque, and a 100 km range, with regenerative braking, eco/boost modes, and Bluetooth diagnostics. Certified as an electric tractor in India, it’s also sold in Europe at around $17,100 USD. Powerland plans a new manufacturing plant in Goa to produce 3,000 units annually by 2026.
• Polaris India introduced the premium RZR Pro R 4 Ultimate ATV in 2025, priced at ₹89.74 lakh (~$108,000 USD) ex-showroom. The company also opened its 10th dealership in Chennai, expanding its reach in India’s off-road vehicle market.
• In 2023, China supplied over 2,100 Desertcross 1000-3 ATVs to Russia for military use. These 1,000 cc, 2WD/4WD vehicles support reconnaissance and supply missions, costing $17,141 to $22,783 USD. Though unarmored and vulnerable, their affordability and versatility make them valuable assets.
• In 2024, motorcycle tire sales in Indonesia increased by 8.7%, while commercial vehicle tire sales grew 6.4%, signaling robust demand in key transport sectors.

Key Market Players

• Bridgestone Corporation
• Continental AG
• Goodyear Tire & Rubber Company
• Sumitomo Rubber Industries Ltd
• Michelin Group
• Pirelli & C. S.p.A.
• Yokohama Rubber Company Limited
• Kumho Tire Co. Inc.
• Toyo Tire Corporation
• Apollo Tyres Ltd.

Report Scope:

In this report, the South East Asia Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• South East Asia Tire Market, By Vehicle Type:

o   Passenger Car

o   Light Commercial Vehicle (LCV)

o   Medium & Heavy Commercial Vehicles (M&HCV)

o   Off-the-Road Vehicles (OTR)

o   Two-Wheeler

o   Three-Wheeler

• South East Asia Tire Market, By Tire Construction:  

o   Radial

o   Bias

• South East Asia Tire Market, By Demand Category: 

o   OEM

o   Replacement

• South East Asia Tire Market, By Country:   

o   Indonesia

o   Vietnam

o   Thailand

o   Malaysia

o   Philippines

o   Singapore

o   Cambodia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the South East Asia Tire Market.

Available Customizations:

South East Asia Tire Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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