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Press Release Description

The South African Tire Market to Surge at a CAGR exceeding 3% during 2020-2025

South Africa is an automobile manufacturing powerhouse in Africa. The country is a manufacturing and distribution for several global brands including Toyota, Volkswagen, Nissan, FMC, Hyundai, Renault, Mercedes, KIA, BMW, and many more due to the unparalleled advantages offered by its location. In 2019, the monthly automobile production of the country averaged around 40,000. The production is set to expand amid improving economic conditions and government involvement aiming at clutching 1% of the global automobile production by 2035. Therefore, the robust automobile manufacturing ecosystem offers immense opportunities to tire manufacturers to exploit emerging opportunities in the tire industry. 
According to MarkNtel Advisors’ research report South Africa Tire Market Analysis, 2020, the South African tire market is projected to grow at a CAGR of 3.73% during 2020-25. The growth would be majorly led by the passenger car segment, primarily the Sedan. However, the demand from light trucks in the Light Commercial vehicle segment is also towering at a faster pace. 
Summer tires have made the inroads into the country’s tire market. However, the market share in 2019 remains a fraction of the overall market.

The improving business climate and government sops to attract investments in automobile manufacturing are anticipated to act as a catalyst for the sales of automobiles in the forthcoming years. The country’s automobile manufacturing witnessed a downturn post-2013. However, with improving economic scenarios in Latin America and the Middle East, the export demand is set to witness an uptick during the forecast period. Lately, the capacity utilization of auto manufacturing has crossed 90% showing a positive sign of growth. These developments are projected to act as an energizer for the tire market in South Africa.

Run Flat Tires- An Emerging Trends
The run flat tires is a technology which enables a vehicle to run on the road for around 80 km even when the air loss or puncture is detected. This innovation contributes in saving the materials since spare tires are not required in the vehicles. Conventional tires use pressurized air to support the weight of the vehicle. However, when the tire is punctured, air escapes and the weight of the vehicle is no longer supported, giving rise to flat tires. Bridgestone South Africa has already started manufacturing run flat tires for domestic and export purposes in its manufacturing unit in South Africa supporting speed of around 80km/h.  

Rental Car Market Emerging as an Opportunity Area
South Africa car rental market is burgeoning on the account of increasing demand for car rental, cab, self-driven car and car sharing. The country’s car rental market is matured with a number of global brands who have established their presence in the country. 

The major growth drivers of South Africa car rental market include increasing partnership with major players in travel industry, entry of peer to peer platform such as Uber and growing demand for car rental market from the business segment. Increasing trend of online booking has further aided the demand of rental cars.
Major demand for car rental occurs during summer season owing to huge tourist influx in the country and increasing number of business travelers attending meetings, exhibitions, workshop and conferences contributes in the boost of car rental industry. This is increasing the demand of tires, majorly passenger car tires and it would expected to do the same due to new rental car demands along with the replacement of tires.

“South Africa 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 Off the Road Tire Manufacturers 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 Type of Vehicle (Passenger Car, 2 Wheeler, Light Commercial Vehicle (LCV), Medium & High Commercial Vehicle (MHCV), Off The Road Vehicle (OTR), 3 Wheelers)
2.    By Demand (OEM Vs Replacement)
3.    By Radial Vs Bias
4.    By Region (North, East, West, South) 
5.    By Season (All Season, Summer)
6.    By Sales Channel (Online, Distributors Channel, Others)
7.    By Price Category (Budget, Economy, Premium)
8.    By Rim Diameter (Upto 12”, 12.1” to 15”, 15.1”- 18”, 18.1” to 20”, 20” to 22.5”, 22.6"- 25", 26"-35", 36"-48", Above 48")
9.    By Company  

Key questions answered in the study: 
1.    What are the current and future trends of the South African Tire Market? 
2.    How the market has been evolving in terms of end-user demand, seasons, rim size and application areas?
3.    What are the expert opinion on the future current and future outlook of tire market of South Africa? 
4.    How the competition has been shaping across various vehicle tire categories followed by their comparative factorial indexing?
5.    What are the key growth drivers, challenges and hotspots coming up in the tire market of South Africa?
6.    What are the margins of stakeholders at various levels of the value chain of tire market in South Africa?

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