The tire industry across Qatar is mainly import-driven due to the unavailability of manufacturing facilities in the country, where Asian brands continue to dominate. Besides, cars are becoming more of a status symbol among people, due to which, the vehicle fleet is also rising dramatically and, in turn, propelling the demand for tires and generating growth opportunities for the prominent tire manufacturers.
The Qatar 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 driven primarily by rapidly improving living standards & disposable income of people, coupled with their growing inclination toward privately owning vehicles, which, in turn, is demonstrating a swift escalation in the vehicle fleet. As a result, the demand for tires is accelerating across the country and driving the market.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone Corporation, Yokohama Ali Bin Khalifa Al Hitmi & Co., Hankook Tire Co. Ltd., Pirelli Tyre (Suisse) SA Middle East Branch, Michelin AIM FZE, Continental AG, TOYO Tire & Rubber Co., Ltd., Goodyear Tires, Apollo Tyres Ltd., Others|
|Unit Denominations||USD Million/Billion|
Besides, the growing focus of the government on infrastructural developments under its strategic plan Qatar Vision 2030 to diversify the economy away from oil is portraying various ongoing & upcoming construction projects. It, in turn, is propelling the demand for medium & heavy commercial vehicles and augmenting the production of robust tires. With this, the prominent tire manufacturers are witnessing opportunities to increase their tire import & distribution capacities to meet the burgeoning consumer requirements across Qatar and boost the market in the coming years.
Furthermore, since the ownership of private & luxurious vehicles is more like a status symbol among the population of Qatar, the vehicle fleet is rising rapidly, which, consequently, is infusing the demand for tires and fueling the overall market growth.
Impact of Covid-19 on the Qatar Tire Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across Qatar, where the automotive & tire industries were no exception and witnessed a dual impact of the crisis. While the government imposed stringent movement restrictions & frequent lockdowns to curb the spread of this dreadful disease, the leading players in the market witnessed several unprecedented challenges, especially associated with the production, import, & distribution of tires across the country.
The disruptions in the supply chain causing unavailability of raw materials, delays in the deliveries of pre-produced goods, fluctuations in the prices of raw & finished goods, and cancellation of projects, among others, were some significant challenges that caused hindrance to the market growth.
However, since the construction sector is one of the prominent sources of economic fluidity across Qatar, the government did not suspend these operations & allowed them while following safety protocols. It, in turn, led to the continuous demand for commercial vehicles and, consequently, tires. As a result, the Qatar Tire Market was able to sustain itself amidst the crisis and generated lucrative prospects for the market leaders to enhance their production & distribution capacities & meet the rising end-user requirements.