Giti Tire is a Singapore-based global tire company, whose roots go back more than 65 years in Indonesia. In all, the company has 12 offices and five R&D/technical centres worldwide, as well as production facilities in China, Indonesia, and the US. In addition, the company has OEM relationships and recognition from numerous top global manufacturers, and participates in high-profile motorsports categories both in the car and truck categories. Executive Director of International Sales and Marketing Chris Bloor explains how Giti has become a major player in the global tyre market.
How and when did Giti start working with the major OEMs?
Giti has been working with major OEM’s for many years, receiving supplier quality awards by international companies like General Motors for more than a decade. Giti now has OEM fitments on many passenger car and commercial truck and bus manufacturers, including new partnerships in Europe and the US. In Asia, Giti is particularly strong in OEM, and can be found fitted on a wide range of vehicles of all types.
As a major tyre maker, how does Giti Tire maintain a competitive edge in a competitive market?
The global market is today a very competitive one, with a large number of companies in both the high-end and entry-level price segments. This is particularly true in the Middle East. However, Giti is able to strongly compete because of the quality and value that its tires give. When comparing cost-per-kilometre in testing, Giti performs very strongly, and in addition offers a great deal of training and tire support tools for fleets and other users. That is why Giti Tire products are already used on a wide range of fleets in the Middle East.
How does your R&D and product development work? How have you had to adapt for the local market?
Giti Tire has been putting a large amount of investment in R&D for a long time. This includes major research and development centres in Germany, USA, China, and Indonesia, as well as a testing centre in the UK. In addition, the company has proving grounds in various locations, including a world-class facility recently opened in Indonesia.
The Middle East is an interesting market for products, in that it combines different environments and conditions. Some parts are more similar to Europe or Asia, while others are unique. So this requires all of the R&D facilities work together on technology, so that products can be adapted accordingly. Because of this, Giti can continue to advance products and technology to meet the needs of local consumers.
How do work with Commercial Vehicles OEMs when it comes to tyre development?
Strong communication with commercial vehicle OEMs is very important during tire development. Each manufacturer and vehicle has its own needs, so this requires flexibility and collaboration to create a successful win-win situation – for Giti, the vehicle manufacturer, and of course the end-users.
Please give us a run-down of your current offering for the Middle East
In the Middle East, Giti offers a full range of passenger car, SUV/4×4, and light truck tires for any type of use and vehicle segment. For commercial truck and bus tires, Giti has a wide variety of offerings for the Long haul, Regional, Urban, Mixed service, and Off-road segments. Regardless of the applications or conditions the vehicles are working in, Giti has an option to fit the needs, which is important in the Middle East, where there are so many vehicle types.
What is your strategy for the region? And why do you think you can make an impact in the crowded market?
Giti already has been selling brands (such as GT Radial, Primewell, and Runway) in the Middle East for decades, and has a variety of very strong partners in the region, many who have been working together with the company for more than 20 years. Recently the company has introduced its flagship Giti brand to the region, in both passenger car and commercial truck and bus segments, and Giti Tire also opened a Dubai office in 2017. Because of the product quality, strong CPK, and support tools, Giti can remain strong even in the crowded and competitive market.
What is the potential for Giti in the region?
There is a large potential, especially in the Commercial Truck and Bus segment, which requires a large number of tires on various applications and terrains. The important thing is to continue to provide strong value, support, and consistency, so that users of all types recognise Giti as the brand of choice when making decisions for their fleet.
What would say are the key characteristics of the region?
For one, the very strong heat and sometimes challenging road conditions in the region require especially durable and well-made tires. Fortunately, Giti tires are specifically designed and tested to withstand the harshest of conditions. The quality and durability of tires is paramount all the way from the product design to the factory production equipment. In addition, the Middle East consists of a number of small and unique countries, all of which have special characteristics, people, and political situations. This requires Giti to be adaptable and understanding to both the regional and local situations.
How can you explain to the market to not just focus on price?
This is definitely one of the most important things that we try to do, as Giti is a brand focusing on quality and CPK value, rather than just purchasing price. The best way to do so is to prove it through our Middle East fleets, a number of whom have given strong testimonials about the product quality and overall savings. In addition, we offer many materials, participation at industry events, trainings, and more to show about this. We even have a feature in each month of Truck & Fleet ME magazine that focuses on an aspect of commercial fleet tires that shows the true value, as opposed to just cheapest price.
What are your major technological and green initiatives?
Technological development, fuel efficiency, and green production is all extremely important for Giti Tire, from the top management to factory workers. Each year, the company has a number of goals and initiatives to reduce production waste, improve mileage, and give back to the environment in other ways, including a long-standing partnership with Conservation International. This also includes improving factory automation through technology, and well as involvement in educational initiatives to fleets as well as students of all ages.
Do you try to help fleets meet tighter regulation and be safer and greener?
Giti tries to provide education about safety and conservation to distributors and end-users. Driving and fuel efficiency is one of the most important topics we can share about, and Giti always wants to help in this way: both to save costs and also to help the local environment and communities in which it operates. We also provide tools and guidance that can help them achieve better safety and efficiency.
How has the introduction of VAT impacted Giti or the market in general?
Giti Tire is always considering the local regulations and market situations, and adapts its strategy accordingly. In the case of VAT, it effects users of all types, which also impacts their purchasing ability. While new regulations cause challenges that need to be adapted to, Giti believes that as a large company with a long-term mindset, it needs be flexible to such situations and continue to be successful.
What major trends are in the market and how do your tyres meet the demand they create?
In general, fleets and users are even more cost-conscious than previously, changing the way that tire manufacturers must think. With a huge number of brands in the market, it is important for companies to distinguish themselves and the real value that they can create. In addition, certain tire types and sizes change in popularity, so it is important to be closely in-touch with evolving market needs. But CPK and good service are dependable qualities that will always exist, no matter the trends at any certain time.
Giti has made a major strategic move by entering the US truck tyre market – how successful has the three-year strategy been?
Giti has had an office, warehouses, and distribution in the US for many years, including the sale of commercial truck tires. In 2018, the company re-focused its TBR efforts in this important market, highlighted by the launch of its flagship Giti brand TBR tires in the country for the first time. The US market is a very high-potential but also challenging one, with large well-established fleets and partnerships going back many decades. So it takes time to gain a strong reach in the market, but Giti’s tires have already been receiving very positive attention and feedback based on the strengths that they provide.
Giti Tire is stepping up its sport sponsorship this year – how does this help the company? Also how difficult is it to find exclusive sports tie-ins for tyre manufacturers – it seems very competitive from the outside?
Giti has aggressively expanded its motorsports partnerships and participation recently. Motorsports is important to the company and Giti brand for a wide number of reasons. For one, Giti’s motorsports presence in Europe, Asia, North America, and elsewhere brings brand awareness and recognition from viewers, many of which are very passionate about driving and cars. It also shows the strength and confidence of its product quality, based on the fact that its tires are relied upon to race with top teams, races, and events around the world.
