Developing Asian Cities Register High Average Vehicle Count per Tire Servicing Garage: GfK Asia

November 2, 2010, SINGAPORE – As the car population around the Asian region continues to grow in the wake of economic recovery, the demand for aftermarket products and services are also increasing.

Global leading market research company GfK who conducts retail audit in the automotive aftermarket in major Asian cities like Bangkok, Kuala Lumpur, Jakarta, Manila and Seoul, made an interesting observation pertaining to the vehicle population versus tire servicing garage saturation level in differing economies. While each tire servicing garage in developing cities such as Kuala Lumpur, Bangkok, Jakarta and Manila services an average of 2250 vehicles, this figure is almost halved, at 1172:1 when compared with a developed city such as Seoul.

“Our study shows that there has been a considerable increase in the number of automotive-related retailers in the region. Take Jakarta for example. GfK’s most recent universe count conducted in May 2010 registered a 23 percent increase in the total number of car garages and tire specialists as compared to the previous one carried out in April 2009,” commented Stanley Kee, Regional Commercial Director of GfK Asia.

“The automotive industry is one of the region’s key economic drivers because many economic activities rely on or are linked to this industry,” added Mr. Kee. “Vice versa, improving consumer sentiments have also boosted the performance of the industry when the global economy started picking up.”

GfK findings also reported revenue increases in the passenger car tire aftermarket across Indonesia, Malaysia, and Korea when comparing the respective countries’ latest quarter’s sales values with the same quarter* in 2009. Developing economies like Malaysia and Indonesia grew at a higher rate of 8.3 and 17.9 percent respectively, while the replacement car tire industry in South Korea, a developed market, grew at a much lesser extent at 2.5 percent.

“As cars become more stylish, tire trends move in similar tandem to match in sophistication, leaning towards higher speed ratings, and heavier tires as a result of larger rims as well as wider tire widths. In addition to the increased weight, rising costs of raw materials have been causing prices of tires to rise over the past year,” noted Mr. Kee.

In the last 12 months**, total value of the replacement car tire industry in Jakarta alone totaled USD 79 million with the price per tire averaging USD 72, while in Malaysia’s Klang Valley, the market value came up to more than USD 224 million, with each tire costing USD 67 on average.

Looking forward, Mr. Kee concluded, “With vehicle population in developing countries on a constant uptrend, there is definitely more room for retail network expansion and also for the entrance of more players to meet the high demand of the constantly evolving automotive industry. The industry would be better able to provide truly localized, quicker and dedicated professional service to vehicle owners.”

About GfK Automotive Retail Audit
GfK’s first started retail audit for the Automotive panel in Europe as early as the 1980s. In 2009, GfK Asia introduced retail audit for passenger car tires in Malaysia, Indonesia, South Korea, Thailand and Philippines. Apart from passenger car tires, GfK Asia also conducts retail audit of car starter batteries in Thailand and Malaysia, passenger car engine oil in Malaysia and Indonesia and retail audit for motorcycle engine oil is now available in Vietnam.

Notes:
*Quarter on Quarter comparison: July - September 2010 VS July – September 2009
**Last 12 months: October 2009 – September 2010

About GfK Asia Pte Ltd
A part of the global GfK Group, GfK Asia has over 25 years of experience providing reliable retail and technology market data in Asia. Our analysts track a broad range of consumer products, including technical consumer equipment, optics, automotive, and gaming software. GfK Asia covers more than 160 products and over 918,000 models, collecting monthly data from over 8,000 specialist / independent shops as well as over 560 organized retailers with approximately 15,000 outlets. Based in Singapore, GfK Asia offers extensive coverage of Singapore, Malaysia, Thailand, Indonesia, Korea, Taiwan, Hong Kong, Vietnam, The Philippines, and India.

The GfK Group
The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 4 market research organization worldwide operates in more than 100 countries and employs over 10,000 staff. In 2009, the GfK Group’s sales amounted to EUR 1.16 billion. For further information, visit our website: www.gfk.com. Follow us on Twitter: www.twitter.com/gfk_group.

GfK Asia Pte Ltd
One George Street
1 George Street
Singapore 049145

This release was published on openPR.