Press Release Description

Increasing Tire Imports to Strengthen the Nigeria Tire Market through 2025

In 2018, Nigeria was the largest economy of the African region. The investment climate in the country has been improving over the past couple of years. Moreover, the demand for automobiles is rising from passenger, commercial and construction sector. According to the Nigerian Bureau of Statistics, the total registered vehicle population of the country was around 11.8 million in Q4 2018. However, the motorization rate stood at around 6% in 2018, increased from around 4% in 2010. This gradual increase in vehicle sales is transforming into an increasing demand for tires.

According to the MarkNtel Advisors research report, Nigeria Tire Market Analysis, 2020”, the tire market is projected to register a CAGR of around 3.45% during 2020-25. Passenger car tires dominated the tire industry of Nigeria on account of mounting car sales. During 2005-18, around 330,000 passenger cars were sold in the country. The sales of passenger cars skyrocketed during 2009-15 on account of numerous financing schemes introduced by banks for credit. However, the sales plummeted after 2015 due to economic crunch, low forex reserves and increase in the financing rates. Therefore, this slowed down the sales of tires temporarily. However, the sales picked up in 2017 and 2018, and is expected to gain momentum during the forecast period as well. Moreover, the entrance of ride sharing companies such as Uber and Taxify, has further pushed the demand for passenger car tires. As of 2018, these companies have an estimated fleet size of around 16,000.

Replacement Demand for Tires to Energize Nigeria Tire Market 

Due to the absence of OEMs in the country, Nigeria’s tire industry is entirely driven by replacement tires. However, several OEMs have planned to set up their manufacturing units in Nigeria with the aim of tapping the emerging demand from local and other countries in Africa. The automotive industry stakeholders from Volkswagen, Nissan, Bosch, and BMW have been in talks with the local government for exploring the manufacturing opportunities in the country.

Nigeria is completely an import driven market and imports from South Korea, Japan, India, Brazil and China, etc. The total exports in 2018 were accounted to be around USD 200.19 million in 2018. Moreover, the replacement of tires is propelling with the increasing passenger car imports and rising demand for two-wheelers.

The demand for all-season tires is surging in Nigeria as some northern countries in Africa faces hot temperatures. Therefore, summer tires and all-season tires are used in passenger cars and other vehicles, revealed by MarkNtel Advisors’ in their research report, “Nigeria Tire Market Analysis, 2020”.

According to the MarkNtel Advisors the major leading players in the Nigeria tire market are Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Kumho, Pirelli, Triangle and Hangzhou Zhongce, etc. Michelin also distributes other brands like Komoran, TIGAR and BF Goodrich- all sourced from Europe to Nigeria.

“Nigeria 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 Nigeria 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, winter and Summer)
6. By Price Category (Low (Up to USD90), Medium (USD91-USD140), High (Above USD140))
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 (Jahra, Asima, Farwaniya, Hawalli, Ahmadi)
9. By Company (Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Triangle, Kumho, Pirelli and Hangzhou Zhongce)

Key questions answered in the study:

1. What are the current and future trends of the Nigeria 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 country?
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 Nigeria tire market?
6. What are the customer orientation, purchase behavior, and expectations from Nigeria tire suppliers across various regions?