GOODYEAR PHILIPPINES, Inc. is targeting to further increase its market share in the National Capital Region (NCR), which it already dominates.
“Hopefully we increase it… Say, 1% every year,” Goodyear Philippines Market Director Kenneth D. L. R. Sambajon said in a media roundtable in Taguig City on Thursday.
Citing figures from a Gfk Global report, Mr. Sambajon said Goodyear Philippines already accounts for 41% of the 19.2 million tires of the 2.4 million passenger segment vehicles registered with the Land Transportation Franchising and Regulatory Board in the NCR.
For the past four years, the company has been expanding its market share by 1% annually.
Saul Aurelius Isidore C. Babas, marketing head at The Goodyear Tire & Rubber Co., said NCR is a priority market since it is where the company generates the most sales.
Goodyear Philippines, Inc. is a subsidiary of The Goodyear Tire & Rubber.
Mr. Babas expects the company to continue growing in “double-digits” at par with the overall industry’s 12% average annual growth rate for the past five years.
Goodyear Philippines’ outlook is bolstered by the growth registered in the sport utility vehicle (SUVs) segment.
“For the past how many year, we have seen tremendous growth in the SUVs. Because of this tremendous growth in the automotive industry, it replicates on the tire replacement industry,” Mr. Babas said.
However, the company expects an impact from the slump in auto sales this year. In the first nine months of the year, vehicle sales dropped 13.8% to 261,057 units, weighed down by higher excise taxes, soaring inflation and rising fuel prices.
Mr. Sambajon said its effect on the tire replacement market is expected to be felt after three years, the minimum turnover period for higher-end tires.
“In terms of that impact, bababa ang replacement rate after three years. But also the positive thing is more and more people will keep their SUVs for a longer period of time,” the Goodyear Philippines marketing chief said. “The impact will be different in that you will now think twice about buying a cheaper tire.”
Next year, Goodyear Philippines will be celebrating 100 years of operations in the country, while its Ohio-based parent will mark its 120th year. — Janina C. Lim
