Brazil Tire Market Research Report: Forecast (2022-2027)

Market Overview

The tire industry in Brazil is expansive and rapidly growing on account of the extensive presence of prominent tire manufacturers & automakers in the country. The increasing vehicle sales in Brazil are augmenting the need for more and more production of tires. Besides, since companies like Pirelli, Bridgestone, Goodyear, and Continental, among others, have established facilities in the country, it projects remunerative growth prospects for the tire industry in the future.

Market Insights

The Brazil Tire Market is projected to grow at a CAGR of around 1.8% during the forecast period, i.e., 2022-27. The market is driven by the improving economic conditions of the people, changing living standards, developing road infrastructure, and the growing inclination of the people toward private ownership of vehicles, showcasing an upswing in the vehicle fleet across Brazil. 

Besides, the government is actively focusing on infrastructural developments in the country, i.e., leading to numerous construction projects for the residential, commercial, & industrial sectors. It, in turn, is augmenting the production of different commercial vehicles and soaring the demand for robust tires to attain utmost operational efficiency. 

In addition, owing to the alarming levels of carbon emissions, the government is encouraging the adoption of Electric Vehicles (EVs), thereby generating growth opportunities for tire manufacturers to develop EV-compatible tires. Moreover, favorable government policies for attracting foreign investments in establishing tire production units across Brazil would further drive the tire market in the coming years. 

Furthermore, as more and more companies are portraying a swift acceleration in mergers & acquisitions, the government of Brazil is actively participating in promoting the local manufacturing of tires, which, in turn, would fuel the overall market growth through 2027.

Impact of Covid-19 on the Brazil Tire Market

In 2020, the Covid-19 pandemic significantly impacted many businesses across Brazil, which introduced several unprecedented challenges for the leading players operating in the tire industry. With the exponential spread of this dreadful disease, the government had to impose lockdowns & stringent movement restrictions & suspended all business operations.

Consequently, the leading market players faced substantial revenue losses due to disruptions in the supply chain, shortage of raw materials, delays in the deliveries & production of tires, and price fluctuations of raw materials & tires, among others, amidst the crisis. However, since sustaining in the market was paramount, they shifted to online platforms to sell their products via e-commerce websites & provide door-step delivery & installation to their customers.

Later, as the Covid-19 cases demonstrated a gradual decline across the country, the government uplifted the restrictions & allowed the recommencement of business operations. It, in turn, enabled tire manufacturers to resume their usual business & cater to the consumer requirements.

Market Segmentation

Based on the Demand Type:

• OEM
• Aftermarket

Of two, aftermarket tires are projected to dominate the Brazil Tire Market with the largest share during 2022-27. It attributes principally to the growing cross-border trade in Brazil, i.e., showcasing easy & extensive availability of tires across the country, ranging from different brands, features, budgets, etc.

In addition, the growing awareness among vehicle owners about the significance of timely inspection of tires for enhanced safety & performance is leading to frequent tire replacements, thereby augmenting the sales of aftermarket tires across Brazil and driving the market.

Besides, as most commercial vehicles are driven for longer hours on changing terrains, tires tend to wear off sooner than usual, which, as a result, propels the need for tire replacements. Hence, it is another reason behind the flourishing aftermarket sales owing to their easy availability & affordability across Brazil.  

Based on the Vehicle Type:

• Two Wheelers
• Passenger Cars
• Light Commercial Vehicles (LCVs)
• Medium & Heavy Commercial Vehicles
• Off the Road (OTR) Vehicles

Here, two-wheelers are anticipated to dominate the market with the largest share through 2027, owing to the increasing traffic congestion due to improper road infrastructure and growing vehicle fleet across Brazil, i.e., augmenting the demand for two-wheelers and positively influencing tire sales.

Besides, benefits like easy availability, affordability, and convenience, among others, are other prominent factors attracting greater consumer preference for two-wheelers, especially among the middle-class people, and, in turn, stimulating the demand for two-wheeler tires across the country.

On the other hand, with gradual improvement in the economic status of Brazilians & their mounting inclination toward private ownership of vehicles, the fleet size of passenger cars is rapidly expanding and indicating notable expansion of the tire industry in the coming years.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Brazil Tire Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Brazil Tire Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Brazil Tire Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Brazil Tire Market study?

Frequently Asked Questions