Market Overview
Namibia's automotive & tire industries are undergoing significant developments and expect steady growth in the near future. Since the country has only a few prominent tire manufacturers, the tire industry is mainly import-driven. In addition to this, with superior road infrastructure, Namibia is experiencing a swift acceleration in the vehicle fleet, which, in turn, would generate lucrative opportunities for tire manufacturers and promote the overall growth of the tire industry in the coming years.
Market Insights
The Namibia Tire Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2021-26. The market growth is likely to be driven principally by the high-income population group and the growing consumer inclination toward private vehicle ownership, i.e., leading to a rising vehicle fleet and increasing demand for tires in the country. In addition, the immense government focus on infrastructural developments is also showcasing a growing number of vehicles on roads and, in turn, positively influencing the market growth across Namibia.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR(2021-26) | 4% |
| Key Companies Profiled | Bridgestone Corporation, Continental, Sumitomo Rubber Co., Goodyear, Michelin, Pirelli, CST Tires |
| Unit Denominations | USD Million/Billion |
Besides, since the automotive & tire industry of the country is highly import-driven, the easy & extensive availability of tires is attracting a massive consumer base and stimulating the overall market growth. Furthermore, as vehicles have become a necessity for people instead of luxury, the sales of second-hand cars are also escalating swiftly, i.e., augmenting the need for timely repairs & replacement of tires and, in turn, driving the Namibia Tire Market.
Impact of Covid-19 on the Namibia Tire Market
The advent of Covid-19 in 2020 had a decelerating effect on most businesses across Namibia, including the tire industry. Due to the severity of the pandemic, the government imposed stringent movement restrictions & lockdowns to curb the spread of this disease. With this, the leading players in the tire market witnessed several unprecedented challenges associated with the trade & distribution of tires across the country. Moreover, the unavailability of raw materials, delivery delays, and fluctuating prices of raw materials like rubber, etc., brought massive revenue losses for the industry players.
Nonetheless, with the gradually declining number of Covid-19 cases, the government uplifted the restrictions & allowed the recommencement of business operations. As a result, the leading players in the market resumed imports, distribution, and other business operations throughout the country to recover from losses that occurred amidst the crisis.
