Chinese tire brand deems Phl as major growth area

CEBU, Philippines - The increasing individual car ownership coupled with the improving expansion of industrial companies in the Philippines prompted Chinese tire maker Aeolus Tyres Company Ltd, to strengthen its presence in the country.

In an interview with Aeolus Tyres Company Ltd. general manager for international sales and marketing Ali Gou, he said that the Philippines is one of the fastest growing market for both consumer and industrial tire products in the region.

“The Philippines, since our entry 12 years ago, is one of the fastest-growing markets for Aeolus in Southeast Asia. We attribute this growth to the high-quality and high-performance tire product that we manufacture, as well as the growth of the motoring industry here,” Gou said on the sidelines of the company's Asia Pacific Convention held at the Shangri-La Mactan Resort and Spa.

Southgate Express Marketing, Incorporated, general manager Gerard U. Tan said that the availability of Aeolus tires, which will be exclusively distributed by Southgate, will be spread in key areas in the Philippines.

The growing mining sector is one of the brand's growth drivers, along with other institutional customer-base. Likewise, Tan said the growing number of Filipinos owning a car, who are particular on the quality of tire brands, also attributed to the encouraging growth of brand's performance in the Philippines.

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,

A report from the Chamber of Automotive Manufacturers of the Philippines, the Truck Manufacturers Association and the Association of Vehicle Importers and Distribution, automotive sales in the country grew by 28 percent during the first half of 2014.

The company initially supplied tires for the commercial and industrial segments but started supplying tires for the consumer market two years ago.

According to Tan, the fastest-growing market segment is the industrial segment, driven by industries like mining.

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. (FREEMAN)