Press Release

Brazil Tire Market to Accelerate at a CAGR of Around 2.5% During 2024-30

The Brazil Tire Market is projected to grow at a CAGR of about 2.5% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The Brazil Tire Market has experienced a robust upswing, primarily driven by a substantial influx of investments leading to vigorous vehicle production operations. Positioned as the 8th largest global vehicle producer, Brazil has become a focal point for major automotive industry leaders like General Motors, Volkswagen, Fiat, Ford, and Renault. These key players are strategically directing significant investments to fortify their production capacities, turning Brazil into a pivotal influencer in the global automotive sector, especially in the realm of light vehicles. This surge in Brazil tire manufacturing activities is anticipated to result in a consequential increase in tire demand, particularly within the domain of Original Equipment Manufacturers (OEMs), thereby steering the overall growth trajectory of the tire industry in Brazil.

Amidst the rising investments, several other factors contribute to the buoyancy of the Brazil Tire Industry. The expanding domestic automobile market, coupled with favorable economic conditions, acts as a catalyst for sustained growth. Shifting consumer preferences toward innovative product offerings, coupled with the escalating demand for specialized tires catering to electric vehicles and agricultural machinery, further diversifies and enhances the market landscape. The convergence of these factors underscores the dynamic and flourishing nature of the Brazil Tire Market today, positioning it as a key player in the global automotive industry. This is likely to contribute to revenue generation in the target market, further states the research report, “Brazil Tire Market Analysis, 2024.”

Segmentation Analysis

Aftermarket Tires Hold a Significant Market Share

Based on the demand category, the market is divided into OEM and Aftermarket. The aftermarket segment has emerged as the dominant force based on the demand category. The aftermarket, representing the replacement tire market, has claimed a predominant position, overshadowing Original Equipment Manufacturers (OEMs). This dominance is attributed to the expanding cross-border trade within Brazil, which facilitates widespread access to Brazilian tires featuring diverse brands, specifications, and price ranges.

Additionally, heightened awareness among vehicle owners about the importance of regular tire inspections for safety and performance has led to a higher frequency of tire replacements, thereby bolstering aftermarket tire sales across the country. As commercial vehicles navigate extended operating hours and diverse terrains, accelerated tire wear further emphasizes the necessity for replacements, contributing to thriving aftermarket sales. Overall, the accessibility, affordability, and convenience associated with aftermarket tires position this category as the driving force in the Brazil Tires Market during the forecast period.

Two Wheelers Leading the Brazil Tire Market

Based on the type of vehicle, the market is divided into Passenger Cars, Light Commercial Vehicles, Medium and Heavy Commercial Vehicles, Off the Road (OTR), and Two-wheelers. In the Brazil Tire Market, two-wheelers have asserted their dominance among various vehicle types. The robust market share of two-wheelers is propelled by factors such as the escalating traffic congestion in urban areas, the growing need for fuel-efficient and agile commuting solutions, and the affordability and convenience associated with two-wheelers.

As the demand for personal mobility rises, particularly in densely populated regions, the popularity of two-wheelers, including motorcycles and scooters, has surged, thereby driving substantial tire sales. The agility, cost-effectiveness, and ease of maneuverability offered by two-wheelers position them as the dominant force in the Brazil Tire Market, reflecting the evolving preferences and mobility patterns in the country.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Continental AG, Bridgestone Americas Tire Operations, LLC, Hankook Tire, The Goodyear Tire & Rubber Company, The Yokohama Rubber Co., Ltd., Michelin, Sumitomo Rubber Industries Ltd., Pirelli & C. S.p.A, Titan, Toyo Tires, and Others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?