Australia Tire Market to Reach USD 2.70 Billion by 2026

2016–2026 AUSTRALIA TIRE MARKET Forecast and Opportunities Published: September 2021 www.techsciresearch.com MARKET INTELLIGENCE. CONSULTING

Table of Contents S. No. Contents 1. Product Overview 2. Research Methodology 3. Executive Summary 4. Voice of Customer 4.1. Factors Influencing Purchase Decision 4.2. Brand Recall 4.3. Brand Switching 4.4. Brand Satisfaction Level 5. Australia Tire Market Outlook, 2016-2026F 5.1. Market Size & Forecast 5.1.1. By Value (USD Billion) & Volume (Million Units) 5.2. Market Share & Forecast (By Volume) 5.2.1. By Vehicle Type (Passenger Car, Light Commercial Vehicle (LCV), Two-Wheeler, Medium &Heavy Commercial Vehicle (M&HCV), OTR and Two-Wheeler) 5.2.2. By Tire Construction Type (Radial, Bias) 5.2.3. By Sales Channel (Offline, Online) 5.2.4. By Price Segment (Ultra Budget, Budget and Premium) 5.2.5. By Region 5.2.6. By Top Five Cities (2020) 5.2.7. By Company (2020) 5.3. Vehicle Fleet Size, 2016-2026 5.4. Market Map (By Vehicle Type, By Region) 2 Automotive © TechSci Research 2

Table of Contents S. No. Contents 6. Australia Passenger Car Tire Market Outlook, 2016-2026F 6.1. Market Size & Forecast 6.1.1. By Value & Volume 6.2. Market Share & Forecast (By Volume) 6.2.1. By Vehicle Type (Hatchback, Sedan and SUV/MPV) 6.2.2. By Tire Construction Type 6.2.3. By Sales Channel 6.2.4. By Rim Size 6.2.5. By Price Segment 6.3. Prominent Tire Sizes 6.4. Passenger Car Fleet Size, 2016-2026 7. Australia Light Commercial Vehicle (LCV) Tire Market Outlook, 2016-2026F 7.1. Market Size & Forecast 7.1.1. By Value & Volume 7.2. Market Share & Forecast (By Volume) 7.2.1. By Vehicle Type (Pickup Truck, Panel Van) 7.2.2. By Tire Construction Type 7.2.3. By Sales Channel 7.2.4. By Rim Size 7.2.5. By Price Segment 7.3. Prominent Tire Sizes 7.4. Light Commercial Vehicle Fleet Size, 2016-2026 3 Automotive © TechSci Research 3

Table of Contents S. No. Contents 8. Australia Medium & Heavy Commercial Vehicle (M&HCV) Tire Market Outlook, 2016-2026F 8.1. Market Size & Forecast 8.1.1. By Value & Volume 8.2. Market Share & Forecast (By Volume) 8.2.1. By Vehicle Type (Truck and Bus) 8.2.2. By Tire Construction Type 8.2.3. By Sales Channel 8.2.4. By Rim Size 8.2.5. By Price Segment 8.3. Prominent Tire Sizes 8.4. Medium & Heavy Commercial Vehicle Fleet Size, 2016-2026 9. Australia OTR Tire Market Outlook, 2016-2026F 9.1. Market Size & Forecast 9.1.1. By Value & Volume 9.2. Market Share & Forecast (By Volume) 9.2.1. By Application Type (Mining Vehicles, Construction & Industrial Vehicles, Agriculture Vehicles, Others) 9.2.2. By Tire Construction Type 9.2.3. By Sales Channel 9.2.4. By Rim Size 9.2.5. By Price Segment 9.3. Prominent Tire Sizes 9.4. Tractor Fleet Size, 2016-2026 4 Automotive © TechSci Research 4

Table of Contents S. No. Contents 10. Australia Two-Wheeler Tire Market Outlook, 2016-2026F 10.1. Market Size & Forecast 10.1.1. By Value & Volume 10.2. Market Share & Forecast (By Volume) 10.2.1. By Vehicle Type (Motorcycle, Scooters/Mopeds) 10.2.2. By Tire Construction Type 10.2.3. By Sales Channel 10.2.4. By Rim Size 10.2.5. By Price Segment 10.3. Prominent Tire Sizes 10.4. Two-Wheeler Fleet Size, 2016-2026 11. Import-Export Analysis 12. Supply Chain Analysis 13. Market Dynamics 13.1. Drivers 13.2. Challenges 14. Market Trends and Developments 15. Policy and Regulatory Landscape 16. Prominent Dealers/Distributors 17. Australia Economic Profile 18. Impact of COVID-19 on Australia Tire Market 5 Automotive © TechSci Research 5

Table of Contents S. No. Contents 19. Competitive Landscape 19.1. Bridgestone Australia Limited 19.2. Goodyear & Dunlop Tyres (Aust) Pty Ltd 19.3. Yokohama Tyre Australia Pty Ltd 19.4. Michelin Australia Pty. Ltd. 19.5. Kumho Tyre Australia Pty Ltd 19.6. Hankook Tyre Australia Pty. Ltd. 19.7. Continental Tyres of Australia Pty Ltd. 19.8. Pirelli Tyres Australia Pty Ltd. 19.9. Toyo Tyre & Rubber Australia Limited 19.10. Federal Tyres Australia 20. Strategic Recommendations 21. About Us & Disclaimer 6 Automotive © TechSci Research 6

PRODUCT OVERVIEW

Scope of Report Product of Interest (POI): Tire Tire is a ring like component that encircles the vehicle’s rim and meets the ground. Tires are filled with compressed air to provide a gripping surface for traction on the surface over which the vehicle travels. Most vehicles are equipped with pneumatic tires where air is held under pressure inside the tire. Since tire production began, natural rubber is extensively used in fabrication of tires. However, the modern tires make use of materials like synthetic rubber, fabric, steel wires, carbon black, etc. adding advanced characteristics to thetires. Market Segmentation VEHICLE TYPE TIRE CONSTRUCTION TYPE AUSTRALIA TIRE MARKET • Passenger Car • Radial Year Range • Light Commercial • Bias Vehicle (LCV) SALES CHANNEL • Offline Review Period • Medium and Heavy • Online Commercial Vehicle REGION 2016 – 2019 (M&HCV) • Northern Territory Base Year • Off the Road (OTR) • New South Wales 2020 • Two-Wheeler • Victoria Estimated Year PRICE SEGMENT • Tasmania 2021 • Ultra Budget • Queensland • Western Australia Forecast Period • Budget 2022 – 2026 • Premium • South Australia • Australian Capital Territory 8 Automotive © TechSci Research 8

RESEARCH METHODOLOGY

Research Methodology Market Profiling •In-depth secondary research was conducted to determine top players in the Australia tire Data Data Filter Research & Actionable Business market, overall market size and segmental Collection & Analysis Intelligence Insights Solution market size. Formulating Questionnaire •In order to conduct industry experts’ interviews, TechSci formulated a detailed questionnaire. ❑ Identifying Key Opinion Leaders ❑ Questionnaire Design Developing List of Respondents ❑ In-depth Interviews A ❑ Recent Primary Developments •List of industry players and industry specialists Research ❑ Market Changing was developed. B Aspects/Dynamics Desk ❑ Government Data Collection C Research Policies Company ❑ Final Conclusion •TechSci conducted interviews with industry ❑ Market Participants Analysis experts and industry players for data collection ❑ Key Strengths and verification. Data Validation •Data obtained as a result of primary and Primary Secondary Paid Sources secondary research was validated through Research Research rigorous triangulation. ❑ LinkedIn ❑ Company Website ❑ Factiva ❑ TechSci Internal ❑ Company Annual ❑ Hoovers Database Reports Data Analysis ❑ White Paper Study ❑ Financial Reports ❑ Investor •The data was scrutinized using MS-Excel and Presentations statistical tools, such as Time Series Analysis, ❑ Regulatory Body etc. to obtain qualitative and quantitative ❑ Associations, etc. insights about the Australia Tire market. 10 Automotive © TechSci Research 10

Research Methodology Baseline Methodology: For the study, TechSci Research gathered information through primary research surveys with leading tire OEMs operating across the country. We also put through an exhaustive search of credible paid databases, such as BusinessWeek, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudently evaluated all the collected information and presented the same in chronological order to depict a meaningful and clear picture of the Australia tire market. While compiling the data, we have also cross checked all the collected information from multiple sources and data warehouses in order to present the most accurate and precise information of Australian tire industry. All the data representation done in the report is in calendar year period. For instance, the year 2020 denotes period between 1st January 2020 and 31st December 2020 until mentioned otherwise. Primary Research – Partial List of Companies Interviewed Few Sources of Secondary Research S. No. Company/Dealers & Distributor Names S. No. Secondary Sources 1. Bridgestone Australia Limited 2. Goodyear & Dunlop Tyres (Aust) Pty Ltd 1. OICA 3. Yokohama Tyre Australia Pty Ltd 4. Michelin Australia Pty. Ltd. 2. World Bank 5. Kumho Tyre Australia Pty Ltd 3. FCAI 6. Hankook Tyre Australia Pty. Ltd. 7. Continental Tyres of Australia Pty Ltd. 4. Industry Magazines 8. Pirelli Tyres Australia Pty Ltd. 5. Credible Paid Database 9. Toyo Tyre & Rubber Australia Limited 10. Federal Tyres Australia 11 Automotive © TechSci Research 11

Research Methodology Vehicle Sales & Fleet Size In order to analyze the Australia tire market, historical and current year vehicle sales and fleet size data was collected through various secondary sources and credible data portals. TechSci Research has also maintained database for vehicle sales and fleet size for all vehicle types, which is regularly updated through various primary research surveys and secondary sources such as tire associations & government publications. Tire Demand Due to the absence of vehicle manufacturers in Australia, the tire demand in the country primarily comes from replacement tire sales only. Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet size and historical vehicle sales. Replacement tire demand is calculated by multiplying vehicle fleet with replacement tire ratio, which is obtained by conducting a series of surveys with car owners and dealers to understand the frequency of tire replacement, as it varies for different countries depending upon the country’s road conditions, climate, economic and regulatory policies, etc. The replacement ratio is expressed in terms of percentage. For example, in case of two-wheeler, replacement ratio is considered 100% if two tires are replaced per vehicle per year. Two-wheeler Fleet Size Replacement Ratio Replacement For instance, for two-wheeler replacement tire demand calculation: (Volume) X (%) X No. of Tires = Tire Demand 100,000 X 19% X 2 = 38,000 Tires The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique, i.e., multiple rounds of telephonic interviews with tire companies/dealers in Australia. The information collected is then cross-verified through industry experts and secondary sources, such as annual reports and paid databases to generate meaningful results. For forecasting the numbers, we have used time series analysis along with regression analysis, followed by judgmental analysis. 12 Automotive © TechSci Research 12

Industry Brief According to TechSci Research report, “Australia Tire Market By Vehicle Type (Passenger Car, LCV, M&HCV, OTR and Two-Wheeler), By Tire Construction Type (Radial and Bias), By Sales Channel (Offline and Online), By Price Segment (Ultra Budget, Budget and Premium), By Region, Competition, Forecast & Opportunities, 2026”, Australia tire market is anticipated to reach USD2.70 billion at a CAGR of 4.19% by 2026 because of escalating fleet size of the vehicles, which is uplifting the aftermarket demand for tires in Australia. The increase in per capita income has out- turned an increase in the purchasing power as well as rising quality of living. This is resulting in the growth of vehicle sales as well as an extension of fleet size, leading the way towards growth in the replacement demand for tires in Australia. Owing to a rapid increase of new models of cars are being launched due to high interest and fondness among the Australian citizens, numerous passenger car producers are emphasizing the insertion of new models with upgraded safety features. The demand for passenger cars is going to remain high in the upcoming years, which is supposed to further boost the demand for tires in Australia through 2026. However, during the COVID-19 pandemic, which led to an economic crunch in 2020, the country's automotive sales dipped considerably. After the long and hugely adverse impact of COVID-19 lockdown, the tire market has again gained some boost in Australia. Following a compelling cutback in production and sales in recent months, vehicle production has resumed, with sales also arising up, concluding in increased demand of tires sales via e-commerce websites are also benefiting the tires markettocopeupaftertheCOVID-19. Australia Tire market can be segmented based on vehicle type, tire construction type, sales channel, price segment and region. On the basis of price segment, the ultra-budget vehicles are dominating the overall Australia tire market with more than 2/5th of total market share. However, the budget segment is projected to witness the fastest growth in the forecast period in the market. On the basis of vehicle type, passenger car tires are leading the Australia tire market with more than half of the total market followed by LCV, M&HCV, two-wheeler and OTR. The people in Australia are preferring sports utility vehicle (SUVs) in passenger car segment, therefore, it is expected that passenger car tires will be in in demand as compared to any other tires, therefore it will increase at a higher CAGR in comparison to other vehicle types. On the basis of tire construction type, radial tires are dominating in Australia tire market over bias tire with almost 3/4th of the total share. This is mainly due to high demand in passenger cars and because of increasing fleet of passenger cars it is expected that it will dominate the market in upcoming years also. Bridgestone Australia LTD, Goodyear & Dunlop Tires (Aust) Pty Ltd, Yokohama Tire Australia Pty Ltd, Michelin Australia Pty. Ltd, Kumho Tyre Australia Pty Ltd. are the key players developing advanced technologies and launching new products to stay competitive in the market. Other competitive strategies include mergers and acquisitions, new product developments and also increase their marketing activities and enriching product portfolio across the country to increase their customer outreach. “In 2020, passenger car tires accounted for the largest share of around 69% in Australia tire market and it is expected to dominate in the forecast period also. In the forecast period also, it is expected that passenger car tires will dominate because of increasing sales and growing fleet size of passenger cars in Australia.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm. Automotive © TechSci Research 13

Sample Data -Snapshot Australia Tire Market Size, By Value (USD Billion), 2016-2026F CAGR 2016-2020 CAGR 2021E-2026F By Value: xx% By Value: xx% 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Value (USD Billion) Australia Tire Market Share, By Vehicle Type, By Volume, 2016–2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Passenger Car 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% LCV 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% M&HCV 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% OTR 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% Two-Wheeler 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% Australia Light Commercial Vehicle Tire Market Share, By Tire Construction Type, By Volume, 2016–2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Radial 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Bias 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Automotive © TechSci Research 14

Report Ordering Report Name: AUSTRALIA TIRE MARKET Forecast and Opportunities 2016–2026 License Type Price Single User License $3500 Multi-User License $4500 Custom Research License $7500 To View Sample OR Purchase Report Automotive © TechSci Research 15

About Us & Disclaimer TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in numberof areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market. Related Reports • Philippines Tire Market, By Vehicle Type (Two-Wheeler, Commercial Vehicle and Passenger Car), By Demand Category (Replacement and OEM), By Region, Competition Forecast & Opportunities, 2026. • Saudi Arabia Tire Market, By Vehicle Type (Passenger Car, LCV, M&HCV, OTR, and Two-wheeler), By Radial Vs Bias, By Online vs Offline Sales Channel, Competition, Forecast&Opportunities, 2026. • MexicoOTRTireMarket,ByApplicationType(Agriculture,Construction, Mining, Material Handling, Ports, Forestry), By Demand Category (Replacement, OEM),ByRimSize(Upto25’’, Above25”),ByTireConstruction(Radial,Bias), ByCompanyandByRegion,CompetitionForecast&Opportunities,2026. TechSci Research – North America TechSci Research – Europe TechSci Research – Asia-Pacific 708 Third Avenue, Manhattan, 54, Old brook, Bretton, B – 44, Sector – 57, Noida, National Capital New York, United States Peterborough, Region, U.P. - India Tel: +1- 646- 360- 1656 United Kingdom Tel: +91-120-4523900 Email: [email protected] Email: [email protected] Email: [email protected] www.techsciresearch.com www.techsciresearch.com www.techsciresearch.com Disclaimer The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.