The tire industry of Angola is import-driven since the country lacks tire manufacturing units and is sustaining with aftermarkets & imports of tires. As a result, the government is working on improving its trade business and enhancing the country's infrastructure to attract foreign investments & leading companies to establish tire manufacturing plants, which, in turn, would lead to steady growth for the tire industry in the coming years.
The Angola Tire Market is projected to grow at a CAGR of around 12% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven principally by the increasing government focus on infrastructural developments associated with highways, railway stations, etc., which, in turn, is propelling the demand for industrial equipment, including earthmoving, material handling, etc., and, consequently, for tires.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone Corp., Continental Tires, Dayton Tires, Firestone Tires, BF Goodrich Tires, Cooper Tires, Dunlop Tires, Goodyear, Hankook, Kumho Tires, etc.|
|Unit Denominations||USD Million/Billion|
Besides, since the country is rich in diamonds & oil, the government is laying out several mining projects in Angola and directly influencing the demand for mining equipment & robust tires for them. Moreover, owing to the unavailability of manufacturing facilities & Original Equipment Manufacturers (OEM), the cross-border trade mechanism is also driving the tire industry in Angola.
As a result, the government is demonstrating several favorable policies to attract foreign investments & enable the leading tire manufacturers to establish their units in the country, and enhance the transportation & logistic chains to boost the tire industry & fuel the country's economy in the coming years.
Impact of Covid-19 on the Angola Tire Market
The advent of Covid-19 in 2020 had a decelerating impact on most industries across Angola, and the automotive & tire markets witnessed catastrophic effects, with several unprecedented challenges, especially with the imposition of stringent movement restrictions & lockdowns by the government to curb the spread of this dreadful disease. These restrictions that affected the transportation & logistic chains in the country also hampered the distribution of tires.
Besides, as the tire market in the country is driven primarily by cross-border trade & exports, hindrance in these channels resulted in the unavailability of tires and massive financial losses for the leading players in the industry. Moreover, since Angola does not have manufacturing facilities for tire production, its dependence on trade was severely affected amidst the crisis.