Press Release Description

Influx of International Automotive OEMs and Government Support to Boost Latin America Tire Market

Favorable government policies and increasing effort of the government authorities to uplift the industry is projecting growth in the demand for tires in Latin America. The market is also supported by increasing per capita income, rising population and growth in the automotive fleet size in the region, during the historical period. Moreover, infrastructure renovation projects and strong emphasis on infrastructure development by countries such as Colombia, Peru, and Venezuela are expected to push the demand for tires in the region, during the forecast period. The revival of light commercial vehicle (LCV)  and medium & heavy commercial vehicle (MHCV) sales in late 2017 has continued in the subsequent years after consecutive years of doldrums. This reinvigoration of LCV and MHCV sales has rejuvenated fresh demand for tires.

  

According to MarkNtel Advisors’ research report Latin America Tire Market Analysis, 2020, the tire market of Latin America is poised to reflect tremendous growth owing to increasing partnership by the government to promote the production of automobiles in the region. The overall demand for tires in the Latin America region stood at 156 million units in 2019 and is expected to surge at a CAGR exceeding 2.6% during 2020-25 on account of growth in number of automobile production bases, expansion of passenger car registrations in the region, revealed by MarkNtel Advisors’ research report, revealed by MarkNtel Advisors’ research report “Latin America Tire Market Analysis, 2020”.  

Impact of National Market Dynamics on the Regional Tire Market
As per MarkNtel Advisors’ study, Latin America holds a significant difference in the situation of the national level and regional markets. The demand for tire has experienced positive growth patterns from almost every nation in the continent. An increase in demand for tires from countries such as Peru, Ecuador, and Colombia has been offset by a drop in the sales of tires in Venezuela during 2015-19. The drop in demand for tires in the country is due to a decline in the oil prices and the implosion of the government. However, the Venezuelan market is not anticipated to have a substantial impact on the sales of tires in other counties of Latin America, during the forecast period as the auto sales are gaining momentum in Brazil and Argentina, while Mexico remained a favorable destination of auto manufacturing. In 2019, Mexico was home to around 21 automobile manufacturers including Volkswagen, Mercedes, BMW, Ford, Toyota, Kia, etc., exporting 3.9 million vehicles in 2019, an increase of around 5.8% over the previous year.

As of 2019, radial tires dominate the demand for tires over bias ones. The radialisation of tires is faster in passenger cars in comparison to LCV, MHCV, and two-wheelers. However, a considerable growth is expected in LCV, outpacing MHCV and two-wheelers during the forthcoming years. 

The leading players in the market involve Bridgestone, Continental AG, Goodyear, Hankook, Michelin, Pirelli, Sumitomo Tires, Kumho Tires, Yokohama and Apollo Tires, etc. However, the marketing is witnessing an influx of Chinese tires. To counter the market disruption caused by the Chinese tires, the countries such as Brazil, Argentina, Mexico, etc. resorted to imposition of antidumping duties with the quantum varying between 10% to 97% during 2010-18 (under multiple phases)  

“Latin America Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and opportunities available for tire providers across the globe. Moreover, the report also encompasses the expert verbatim, 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. 
 
Market Segmentation:
1.    By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium and High Commercial Vehicles, Two-Wheelers, Three-Wheelers and OTR)
2.    By Demand Category (OEM & Replacement)
3.    By Tire Type (Radial and Bias)
4.    By Sales Channel (Direct Sales, Online, Channel Partners)
5.    By Season (All Season, Winter, Summer)
6.    By Rim Size (Up to 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”, 47” and above)
7.    By Country (Brazil, Argentina, Colombia, Venezuela, Chile, Peru, Uruguay, Paraguay and Others) 
8.    By Company (Continental AG, Bridgestone, Goodyear, Hankook and Yokohama among others) 

Key questions answered in the study: 
1.    What are the current and future trends of the Latin America Tire Market? 
2.    How the market has been evolving in terms of vehicle type demand, technology trends and demand category?
3.    What is the expert opinion on the future current and future outlook of the Latin America Tire Market? 
4.    How the competition has been shaping across various regions followed by competitor’s comparative factorial indexing?
5.    What are the key growth drivers, challenges and hotspots coming up in the Latin America Tire Market across various geographies?
6.    What are the margins of stakeholders at various levels of the value chain of Tire Market?