Goodyear Philippines Inc. targets 46% market share

MANILA, Philippines — Tire maker Goodyear Philippines Inc. is looking to grow its market share to 46 percent in five years as it expects car owners to keep their vehicles and invest more on tires amid higher excise taxes on automobiles.

Goodyear Philippines marketing director Kenneth Sambajon said in a briefing, the company targets to expand its market share to 46 percent in the next five years.

“Hopefully, we increase it. What we want is to grow based on how we have actually been growing for the past three years,” he said.

Based on data from market research provider GfK, Goodyear is the most preferred tire with a share of 41 percent in the National Capital Region as of August.

Sambajon said Goodyear Philippines’ current market share has increased from just 37 percent three years ago.

Goodyear Philippines marketing head Saul Babas said the company has seen double-digit growth in sales over the past four years, with the sports utility vehicle segment driving the business.

As Goodyear Philippines’ main business is the replacement of tires, he said the company’s growth is reflective of the performance of the automotive industry.

The impact of the automotive industry’s performance is reflected in the company’s sales after three years, with tires being replaced three years after the vehicle purchase.

While sales of vehicle assemblers Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association Inc. have declined 14 percent as of end-September following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law which slapped higher excise taxes on cars, Goodyear Philippines remains hopeful the company’s sales would continue to post double-digit growth.

Sambajon said more and more people are likely to keep their cars for a longer period of time and be willing to spend for tires given the higher excise taxes.

“If you keep your car over five years to eight years or even 10 years, it’s going to be different. The impact is going to be different because you now think twice about buying a cheap tire. You will now invest in your tire once again. And when you invest in your tire again, most likely, it’s going to be premium,” he said.

The company is confident in its offerings as these are created with safety and innovation, with some of the tires even taking two to three years to develop.

To date, the company has the largest network of tire retailers and Goodyear Autocare outlets providing service to customers in the country.