GfK Asia rolls out Malaysian Tire industry retail tracking

++ GfK Malaysia's survey shows 17,800 Spare Parts Shop, Garages and Tire Specialists serving the pool of more than 12 million Motorcycles, Passenger and Commercial Vehicles ++    

GfK Asia continues to expand its industry sector coverage into Automotive further; in South East Asia Malaysia will pioneer its launch. GfK Malaysia will launch its first passenger Car Tire retail tracking report in June 2009 and hope to expand to include Engine Oil and other Replacement Parts in future.

GfK Asia Commercial Director, Stanley Kee said "In Europe, we have been tracking automotive since the 1980s and within automotive sector, Tire is one key focus. About 50% of the world rubber supply is traded via Singapore and recently the International Rubber Study Group (IRSG) has moved its office from London to Singapore. South East Asia key countries such as Malaysia, Thailand and Indonesia contributes as high as 70% of the world rubber supply for tires, confirms the importance of this region to the world of rubber supply. Malaysia is crucial and domineering country in tire trade, and after its launch we plan to roll out Indonesia, Vietnam, Thailand and Korea on top of China, as our initial phase of the automotive business. The second phase would include countries Philippines, Singapore and Taiwan."

GfK Malaysia sees the region split of spare parts shop, garages and tire specialists excluding car brands service centers concentrating 37% in the Central Region, 26% in the North, 23% in the South, 8% on the East Coast and 7% in East Malaysia. The ratio of 674 automotive vehicle to one spare parts shop, garages or tire specialists in Malaysia presently indicates a good business opportunity but not without steep competition in today's competitive world.

GfK Malaysia General Manager, Jennifer Chan said "The automotive retail landscape is changing in Malaysia. Retail workshops and garages are now becoming more sophisticated in deciding product mix of stock to be in line with the demand trend. Gone are the days of high stock due to poor inventory control."  

In the Central Region where GfK Malaysia will kick start its measurement of the tire market, 91% of the spare parts, garages and tire specialists are independently owned, dictates the logistics distribution challenge for any tire player to win the competition ground. Local brand does have a foot hold in the Malaysia market; within top five brands of tires carried in the Central Region retail front, four are global and one, local.

"Our survey shows that when buying tires for replacement, consumer ranks good value for money as number one, ahead of brand selection followed by comfort of drive being third. This reflects the local and global economic sentiments and general consumers' cautiousness being pragmatic in spending" added Ms Chan.