Market Definition
The two-wheeler tire is the key functional element for the transmission of all the forces between the bike & the road. In addition, the two-wheeler tires are affordable, easily available, and come in a wide variety to cater to various consumer requirements which has created demand for two wheeler tires. In addition, the two-wheeler tire industry in Brazil is expanding significantly due to rising government initiatives & e-mobility services in the country, which positively results in escalating the market growth in the coming years.
Market Insights
The Brazil Two-wheeler Tire Market is projected to grow at a CAGR of around 4.93% in terms of units sold during the forecast period, 2022-27. The factors responsible for the market growth are rising disposable income combined with the inclination of the residents towards the procurement of personalized vehicles for improved mobility made a significant contribution to the demand for two-wheeler tires from replacements & OEMs in the historical years. Moreover, the growing popularity of e-commerce among the residents has notably contributed to the demand for two-wheelers with service providers, including Rappi, Cornershop, and iFood, among others. Hence, this is anticipated to escalate the demand for two-wheeler tires in the forthcoming years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) |
4.93% |
| Key Companies Profiled | Michelin, Bridgestone, Pirelli, Maggion Industrias de Pneus e Máquinas LTDA., Borilli, Rinaldi, Pneus Technic, Others |
| Unit Denominations | USD Million/Billion |
Furthermore, the launch of ‘Rota Program 2030’ in 2018, by the Brazilian government to strengthen the local automotive manufacturing base by encouraging domestic manufacturing of vehicles is anticipated to escalate the demand for tires from OEMs in the upcoming years. Some of the undergoing developments to boost the growth of the two-wheeler tire market include:
Key Trend in the Market
Brazil is a premier destination for tourists, attracting millions of tourists annually. According to the Organization for Economic Co-operation and Development (OECD), Brazil served over 6.6 million tourists in 2018. This certainly increased the demand for ride-sharing services in the region to support the burgeoning travel requirement of tourists as well as residents with a competitive cost. Furthermore, the growing need for economical mobility needs due to a rise in the economic activities has notably boosted the demand for ride-sharing platforms, with indigenous players, such as Mottu & Yellow, being the major operators in the market.
Besides, with the increasing dominance of sustainable traveling alternatives adopted by the residents, the country saw a notable increase in the demand for two-wheelers to cater to emerging mobility needs. Hence, these growth factors are expected to positively influence the growth of the Brazil Two-wheeler Tire market in the forthcoming years.
Impact of Covid-19 on the Brazil Two-wheeler Tire Market
The advent of the COVID-19 pandemic in Brazil negatively impacted the growth of the two-wheeler tire industry due to the imposition of travel & trade norms that restricted mobility & economic activities across the country & resulted in a decline in the income of the residents. This negatively impacted the sales of two-wheeler in the country as the Brazilian automotive sales are heavily dependent upon individuals' income & availability of credit lines & as the crises weakened credit operations, the sales of two-wheelers drastically went down.
However, with the gradual resumption of economic activities & the rising inclination of the residents toward the concept of 'individual transport' to avoid agglomeration, the Brazil Two-wheeler Tire market registered an upward curve. Furthermore, the restrictions in the movement of residents to curb the spread of COVID-19 notably increased the need for e-commerce service providers in the country, which increased the demand for two-wheelers to expand the fleets of e-commerce platforms.
This certainly increased the sales of two-wheelers, thereby proliferating the demand for two-wheeler tires. Hence, the COVID-19 would create potential growth opportunities for the Two-wheeler Tire market of Brazil in the longer run.
