Michelin expands Philippine distribution network after over 60% volume growth
Michelin Philippines is accelerating its local expansion after growing its business by more than 60 percent in volume since 2023, as the French tire manufacturer bets on the country’s long-term market potential.
The company appointed three new specialized importer-distributors—Bermaz Auto Philippines, Icon Equipment Solutions Philippines Inc., and BSB Junrose Corp.—bringing its importer network in the country to seven.
They join Drakester Inc., Entire Car Care Centre Inc., RYCO Inc., and Tiara Commercial & Industrial Corp.
Michelin Philippines and Pacific Islands managing director Jonathan Khong told a press conference on Monday, Aug. 24, that the company remains optimistic about the Philippine market, citing opportunities in industries such as mining, agriculture, transportation, and logistics.
Khong said Michelin considers the country’s challenging road conditions when determining which products to offer in the local market.
“In a country where there are more challenging road conditions, for example, we will sell a different tire. So to answer your question, we [do] take into consideration, in fact, the road conditions whenever we make a tire available for sale in that country,” he told Manila Bulletin in a separate interview.
Rather than treating difficult road conditions as a barrier to sales growth, Michelin uses its engineering and tire technology to offer products suited to local operating conditions.
The company is also seeing rapid changes in how Filipino consumers purchase tires, particularly through e-commerce.
Khong said the Philippines is at the forefront of this shift, with Filipino consumers buying tires online at one of the fastest rates compared with other markets in the region.
Meanwhile, rising raw material and freight costs as well as foreign exchange (forex) fluctuations continue to exert pressure on the tire business.
Khong said Michelin seeks to keep its products competitive by emphasizing the value they provide, even if the company does not necessarily offer the cheapest tires in the market. - Danielle T. Bayani