Domestic tire demand is expected to rebound from Q4 2022
- Although there is a risk that the weak macroeconomic backdrop will reduce purchasing power of Vietnam consumers, it will not fully translate into lower sales of automotive part producers in 2023, given that truck production was cut from Q3 2021 to Q2 2022. We expect truck makers to rebuild their inventories in 2023, thus pushing up tire demand.
- Domestic logistic activities will rise in Q4 2022 due to 1) holiday season; 2) better road infrastructure; and 3) expected re-opening of China’s economy. Earnings sources of tire producers come from replacement and OEMs demand which positively correlated with logistic demand.
- To cope with expected increasing tire demand, Vietnam local-based rubber tire producers plan to expand their production capacity in 2023. DRC is going to complete the phase 3 of Radial tire plant within the 2023-24 period. CSM has a plan to upgrade the TBR tyre plant. SRC plans to invest in expanding the production capacity of tubeless motorcycle tires.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.