Press Release Description

Government Initiatives to Energize the Saudi Arabia Tire Market

Saudi Arabia is the largest automotive market in the Middle East region. The growth in the Saudi Arabia tire market is attributed to the rising purchasing power and growing investment in the infrastructure and construction sector. The government is establishing plans for infrastructural development such as Saudi Vision 2030 and National Transformation Program 2020. Moreover, the extreme weather conditions in Saudi Arabia results in short replacement period of tires. Therefore, it is expected to surge the demand for tires in the years to come.

According to MarkNtel Advisors’ research report Saudi Arabia Tire Market Analysis, 2020”, the tire market is anticipated to register a CAGR of around 8% during 2020-25. In order to diversify its economy, the government has increased investments in infrastructure and construction which is projected to boost the sales of commercial vehicles in the years to come. The Public Investment Fund and the National Development Fund of Saudi Arabia has planned to invest USD 68 billion on development projects. The development projects include King Abdullah Financial District, an entertainment city in Riyadh, and a Red Sea project. Moreover, the government has introduced plans for infrastructure development such as the Saudi Vision 2030 and the National Transformation Program 2020. Therefore, the upcoming development projects are expected to surge the demand for commercial vehicle tires in the years to come. 

As per MarkNtel Advisors’ study, the radial tires captured the highest market share in the Saudi Arabia tire market in 2019. The increased penetration of radial tires in comparison to bias tires has resulted in the replacement of bias tired with radial tires. The narrowing gap between the cost of both types of tires is one of the major factors for the increased demand for radial tires in the country. Moreover, various companies such as Bridgestone, Michelin, Hankook, etc. which dominates in the country has reduced the manufacturing and supply of bias tires globally. 

The key players capturing a significant share in the Saudi Arabia tire market include Hankook Tire, Nexen Tire Corporation, Michelin, Continental, Toyo Tyres, etc. The companies are launching new products to gain a competitive edge in the industry. In 2018, Continental introduced its Generation 6 tire range in the Middle East. In 2018, Goodyear launched KMAX Extreme, a new truck tire line in Saudi Arabia. 

"Saudi Arabia Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decision, hotspots and opportunities available for tire firms across the globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.  

Industry Segmentation:
1.    By Vehicle Type (Passenger Car, LCV, MHCV, 2 Wheeler, OTR) 
2.    By Demand (OEM Vs Replacement)
3.    By Tire Type (Radial Vs Bias)
4.    By Season (All Season, Winter, Summer)
5.    By Rim Diameter (12” to 15”, 15” to 20”, Above 20”)
6.    By Sales Channel (Online, Dealers or Exclusive Outlets, Others)
7.    By Region (Western, Eastern, Central, Southern)
8.    By Competitors (Hankook Tire, Nexen Tire Corporation, Michelin, Continental, Toyo Tyres, Others)

Key questions answered in the study:
1.    What are the current and future trends of the Saudi Arabia 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 Saudi Arabia tire market?
6.    What are the customer orientation, purchase behavior, and expectations from the tire companies across various regions?