Phl growing as 2nd largest market for industrial tires

Chinese tire maker Aeolus Tyres Co. Ltd., expects the Philippines to catch up and become the second largest market for industrial tires in the world, next to China.

Aeolus Tyres Co.Ltd., chairman Wang Feng, who was in Cebu to formally introduce their new tire product called the “Neo Series,” said that the Philippines is one of the fastest growing market for industrial tires, and it could soon overtake Australia as the second largest market.

Wang said the Philippine government’s focus on building infrastructure and the booming real estate sector lifted the demand for quality industrial tires.

“The Philippines is an important market for us. You have over 100 million population,” added Wang.

Although, the Philippines has emerged as the company’s fast growing market in Asia Pacific, the listed company however, still have no plans of setting up a tire manufacturing plant here, citing the government’s lack of attractive offer for big foreign investors.

Gerard Tan of Southgate Express Marketing, Inc., the exclusive distributor of Aeolus tires in the Philippines, said the government has to give favorable conditions for foreign investors to consider expanding in the country.

As of now, Tan said the Philippines’ high power cost, expensive labor fees, and labor laws that have yet to be put in the proper place have weakened the Philippines attractiveness to foreign investors such as Aeolus.

With manufacturing based in China, Aeolus Tryes Co. Ltd., was founded in 1965 and is now among the top 20 tire manufacturers in the world, producing over five million tires each year for a wide range of vehicles.

It has presence in over 140 countries all over the world, including the Philippines. The brand value is worth US$6 billion in the global market,

Aeolus Tyres’ brand started its entry in Cebu since 2002, now it is well competing with established brands in the market, and has distribution presence in major urban areas in the Philippines.

Since the implementation of Duterte’s build-build-build program, Philippine’s sales for tires grew by 20 percent from the usual five percent to 10 percent growth it experienced in the last 17 years.