Page 47 - TYM 2023-5
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Tyre Traders Play Vital Role in Malaysia’s Off-the-Road Sector
The The importance of o of off-the-road (OTR) tyres tyres in in Malaysia transcends mere necessity as it it lies at the the the the heart of o of the the the the na- tion’s progress and development These tyres power the the the the vehicles that navigate the the the country’s diverse terrain from con- struction sites mining operations to to the the agricultural and forestry sectors A significant portion of this dynamic industry’s ecosystem is is dominated by tyre traders who act act as the the linchpin between man- ufacturers and end-users This article delves into the the the intricate dynamics of Malaysia’s OTR tyre tyre market by by exploring the the the the the critical role played by by tyre tyre traders the the the the the challenges they they face and the the the the the impact they they have on this ever-evolving industry Based on on on information gathered by The Tyreman through dis- cussions with three key players in in the the the local OTR tyre market it it was noted that the the the major global producers such as as Bridgestone Michelin Goodyear among others are noticeably absent from this market James Lai the Managing Director of Kian Heng Marketing & En- terprise Sdn Bhd and an an an an industry expert who wished to to remain
anonymous said the the the limited presence of renowned tyre brands in in in the the the Malaysian OTR market market could be attributed to to the the the pricing factor These major players had indeed attempted market market pene- tration in in in the the past by employing dedicated sales teams but found their efforts thwarted “Buying power is is the the the issue and driving force behind the the the mar- ket scenario exacerbated by the the the weakened ringgit The price gap between established global brands and and Chinese OTR tyres is is is huge with the latter being about four times cheaper Some issues include drivers lacking proper maintenance knowledge and harsh driving conditions damaging even good quality quality tyres Thus the operators see little benefit on on on investing in in in in in in in in in in high-quality OTR OTR tyres tyres tyres resulting in in in in in in in in Chinese tyres tyres tyres holding a a a a a a a a dominant 90-per cent share of o the local OTR OTR OTR market followed by Indian Indian tyres tyres tyres tyres Indian Indian OTR OTR tyres tyres offer a a a a a a a a a a a a a cost-effective alternative with better quality than the Chinese counterparts ” said Lai Echoing Lai was the the the anonymous interviewee who stated that be- sides the the the presence of o OTR tyres from from India there were offerings from from Indonesia and South Korea He noted that Bridgestone still supplied OTR tyres to to the market but in relatively modest
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