With South Korean replacement passenger tire sales of over 8.6 million units worth $800.9 million last year, the replacement tire business joins the rest of the automotive industry in being a major part of the entire local economy.
According to GfK’s automotive retail audit, sales in the second half of the year climbed 15% over the first half and nearly 30% compared to the same period in 2009.
GfK commenced tracking of replacement tires in South Korea in mid-2009, covering five major regions – Seoul, Kyunggi, Inchon, Kyungbuk, and Kyungnam. Findings showed that replacement passenger tire prices retailed in the range of $87 to $99 during the 12 months, averaging at $93 per tire in 2010.
While quarter three sales totaled $212.7 million for 2.35 million replacement car tires sold – the highest in unit terms retailed for the year – fourth quarter reported the highest earnings at $216.4 million although having sold a lesser quantity of 2.19 million units.
“The year-end winter season garnered $75 million worth of replacement passenger tire sales in December, which closed 2010 on a high,” observed Moongeun Kwon, general manager of GfK Korea. “It is also interesting to note that the average price of replacement passenger tires also peaked in the last quarter and continued to soar above the $100 mark in the subsequent two months that followed.”
Accelerating inflation across Asia, South Korea notwithstanding, has pushed up prices of raw materials and replacement passenger tires were selling at $99 in the last quarter of the year. The price hikes carried forward to January and February which registered $104 and $102, respectively.
“When we look at the overall performance of the replacement tire industry in the last one and a half year period segmented on a six-monthly basis, the industry has been registering an upward growth trend in both unit and value sales. South Korea is today one of the most advanced automobile producing countries in the world. In fact, the Korean Automotive Manufacturers Association predicted a growth of nearly 6% in domestic car sales in 2011,” said Kwon. (Tyres & Accessories)
