South Korean tire imports grew by 9.9% year on year (y/y) during the first half of 2015, according to data released by the Korea Tire Manufacturers Association. During the six months, 3.74 million tires were imported with a combined value up 1.1% y/y to USD231 million. Passenger car tires accounted for 70% of these imports, or 2.68 million units, up 8.9% y/y.
Significance: The increase in imported tires in South Korea is in line with the country's growing demand for imported completely built-up vehicles. Sales of these vehicles surged 27.1% y/y to 119,832 units during the first half (July data were not available at the time of writing. The rising popularity of imported vehicles is largely due to favourable business conditions in South Korea, arising from free-trade agreements with the European Union and the United States, as well as changing consumer preferences. To counter growing competition from foreign brands, market leader Hyundai is reportedly considering sourcing Michelin and Continental tires for upcoming luxury models such as the Equus, which are reportedly due to launch next year.
