Press Release Description

Chinese Tire Players Grabbed Lion’s Share in the Algerian Tire Market

An increase in construction activity is expected to boost the demand for tires in the Algerian market. Also, snowballing registration of vehicles coupled with growing replacement demand, the tire market is surging at a rapid rate. Amid government push, the total vehicle production in Algeria was valued at USD 70.59 million in 2018 as compared to USD 60.6 million in 2017, rise of around 44% over the previous year.

Besides, Algeria is an import driven market, the government is forming rules and regulations for the domestic production of tires in the country. Few of the Chinese players are engaged with local brands to set up tire manufacturing plants. The country has been thrusting on encouraging global auto manufacturers to set up their manufacturing unit in Algeria. Key players such as Renault, Sovac, Tahkout, etc., have already established themselves as a local manufacturer. While, Suzuki, Tata, and other global players are eyeing an opportunity to cater to the Algerian automobile market.

According to the MarkNtel Advisors’ research report, the CAGR of Algeria Tire Market Analysis, 2020”, is expected to be around 6% during 2020-25.

The strong distribution network of dealers is burgeoning sales in the country in recent years. In 2018, Algeria featured among the leading tire markets in the African region in terms of units sold and overall industry revenues. However, the motorization rate in the country was less than 20% in 2018. This presents an opportunity for auto and tire manufacturers to exploit the market potential in the near future.

Passenger Car Sales to Intensify the Algeria Tire Market

Passenger car tires dominated the tire industry of the country. The sales of passenger cars were around 123,698 in 2018 as compared to 97,983 in 2017. Due to the hot weather conditions in some North African countries and Middle Eastern countries, the passenger car segment outpaces the other segments in the passenger vehicle category. So, Algeria follows the rule of the region.

Replacement Demand to Generate Opportunities for the Tire Manufacturers

As most of the demand for tire comes from replacement demand due to the rising sales of automobiles in the country. In addition to the passenger cars which dominate the automobile industry of the country, the demand for commercial vehicle tires and off the road vehicles is also surging. With the persistent increase in the number of a registered vehicles, the demand for replacement tires is projected to remain dominant during the forecast period. 
Chinese tire suppliers such as Qingdao, Shandong, Hangzhou Zhongce, etc. are substantially more than other suppliers operating in the Algerian tire market. These companies have increased their footprints in the Algerian tire market, majorly in the replacement market. The companies are looking to further strengthen their dominance by entering into alliances with Algerian operators to start manufacturing tires locally as revealed by MarkNtel Advisors’ in their research report, “Algeria Tire Market Analysis, 2020”.

According to the MarkNtel Advisors, the major leading players are Continental, Bridgestone, Pirelli, Yokohama, Double Coin, Triangle Tire, Toyo, Hangzohu Zhongce, Shandong Linglong, Qingdao Doublestar Rubber among others.

In 2019, China's Qingdao Doublestar Group intended to build a car and truck tire plant in Algeria in partnership with local investors El Hadj Larbi Pneumatiques. The joint venture project projects that the factory is capable of producing 5 million passengers and 2 million truck/bus tires a year. The first tire plant started its production in 2 million passenger cars in 2019, based in Setif about 180 miles east of Algeria.  

“Algeria Tire Market Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the industry potential, key factors such as trends, drivers, hotspots and opportunities and challenges available for Algeria Tire market providers across the globe. Moreover, the report also encompasses the key leading players in the industry, along with competitive benchmarking and competition matrix and company profiling.

Industry Segmentation:
1.    By Type of Vehicles (Passenger Car, Light Commercial Vehicle, Buses and Trucks, Medium and Heavy Commercial Vehicles, Off the Road (OTR), Two Wheelers, Three Wheeler)
2.    By Demand Category (OEM and Replacement)
3.    By Type of Tires (Radial and Bias)
4.    By Sales Channel (Dealer/Distributor, Online and Others)
5.    By Season (All season, Summer)
6.    By Price Category (Low (Up to USD70), Medium (USD71-USD90), High (Above USD91))
7.    By Rim Diameter (Upto 12”, 12.1” to 15”, 15.1.” to 18”, 18.1” to 20”, 20.1” to 22.5”, 22.6” to 26”, 26.1” to 35”, 35.1” to 47”, Above 47”)
8.    By Region (North, south, West and East)
9.   By Company (Continental, Bridgestone, Pirelli, Yokohama, Double Coin, Triangle Tire, Toyo, Hangzohu Zhongce, Shandong Linglong, Qingdao Doublestar Rubber)

Key questions answered in the study:
1.    What are the current and future trends of the Algeria tire market? 
2.    How the industry has been evolving in terms of end-user demand and application areas?
3.    What are the future plans and customer expectations of end-users across the globe? 
4.    How the competition has been shaping across the countries followed by their comparative factorial indexing?
5.    What are the key growth drivers and challenges for the Algeria tire market industry?
6.   What are the customer orientation, purchase behavior, and expectations from Algeria tire suppliers across various regions?