The Brazil Two-wheeler Tire Market is projected to grow at a CAGR of around 4.93% during the forecast period, i.e., 2022-27, says MarkNtel Advisors in their recent research report. This is attributed to the rising disposable income, along with the increasing citizens' preference for individualized automobiles for greater mobility, which has contributed significantly to the demand for two-wheeler tires from replacements & OEMs in recent years.
Though, in 2020, the market suffered from a hit due to an economic slowdown caused by the COVID-19 pandemic, which resulted in halted automobile production in the country, hence leading to declined market growth. However, with the start of economic activities in the third quarter of 2020 & an increase in resident revenue inflows, demand for motorcycles in Brazil has increased intensely. This led to escalating the demand for tires from domestic tire manufacturers such as Yamaha, Honda, and BMW, among others.
Moreover, the Brazilian government's implementation of the 'Rota Program 2030' in 2018 to enhance the local automotive manufacturing base by supporting domestic vehicle manufacturing is expected to increase the tire demand from OEMs in the forthcoming years.
Scooter & Moped Held a Significant Share in the Brazil Two-wheeler Tire Market
Based on the type of two-wheeler, the market is divided into Scooters & Mopeds, and Motorcycles. Among them, Scooters & Mopeds held a significant growth rate during 2017-21. The factors responsible for the growth of the segment are rising e-mobility services across the country, fueled by the existence of major companies like Uber & Ride.
Moreover, they have made a significant contribution to the market's growth by aiming to meet the travel needs of the country's growing number of tourists as well as population. For instance, in 2017, Yellow, a Brazilian e-mobility service startup, launched its electric scooter services in Brazil with over 500 micro-mobility vehicles in operation.
Furthermore, with the rising interest in e-mobility, the company is planning to expand the number of vehicles from 500 in 2017 to over 100,000 by 2019. Hence, with the entrance of e-mobility service providers in the nation, the Brazil two-wheeler Tire market witnessed robust demand for the tire in the coming years
Bias Tire to Witness Substantial Growth in the Brazil Two-Wheeler Tire Market
Based on the type of tire, the market is bifurcated into bias & radial. Of them, the bias tires held significant share in the Brazil Two Wheeler Tire Market during the historical period which is attributed to the higher load-bearing capability & affordability of bias tires. On the other hand, lower disposable income & higher price of the radial tires, in comparison to bias, was a key factor hindering the growth of radial tires in the Brazil Two-wheeler Tire market historically.
However, with the rising purchasing power parity of the residents, owing to the diversification of revenue generation sources such as the proliferating service sector & manufacturing industries in the country, the demand for motorbikes using radial tires has notably increased in the country. This would help the growth of radial two wheeler tires market in the forthcoming period.
In addition, the growing use of motorcycles for the transportation of agricultural goods for sale in the domestic market, together with the heightening penetration of online shopping & ride-sharing platforms to support emerging mobility & service needs of residents, has increased bias tire demand significantly.
Replacement Grabbed a Considerable Share in the Brazil Two-Wheeler Tire Market
Based on Demand type, the market is divided into OEM & replacement. Among them, the Replacement type held a considerable growth rate during the historical period, owing to the high rate of two-wheeler ownership & the growing penetration of carpooling services to provide people with affordable ways to move around. This has significantly increased the fleet size of two-wheelers across the country. Moreover, the rising e-commerce activities have considerably accelerated the use of motorbikes for delivery services.
Further, this includes a wide range of products & services with food & grocery consumer electronics, among others. Hence, with the growing e-commerce & mobility-based services in the country, the demand for tire replacements is expected to escalate in the forthcoming years, reveals in their research report, "Brazil Two-Wheeler Tire Market Analysis, 2027.''
Key Market Competitors
The leading players in the Brazil Two-wheeler Tire Market are Michelin, Bridgestone, Pirelli, Maggion Industrias de Pneus e Máquinas LTDA., Borilli, Rinaldi, Pneus Technic, Others.
Key Questions Answered in the Study