Egypt Passenger Car Tire Market Research Report: Forecast (2024-2029)

Market Insights & Analysis: Egypt Passenger Car Tire Market (2024-29):

The Egypt Passenger Car Tire Market is estimated to grow at a CAGR of around 6.23% during the forecast period, i.e., 2024-29. The factors attributing to the growth in the demand for passenger car tires in Egypt are the growing automotive production and increasing usage of ride-hailing taxis. In recent years, there has been a significant rise in the net disposable income of the country's citizens. According to the International Monetary Fund (IMF), in 2022, the Gross Domestic Product (GDP) per capita was approximately USD 4560, an increase of about 10% compared to 2021.

The surge in net disposable income uplifted the purchasing power of the individuals & spurred the sales of the passenger cars in the country. According to the Automotive Market Information Council (AMIC), in 2021, car sales in Egypt reached about 2,15,000, an increase of about 28% compared to 2020. The increasing sales of automobiles consequently drove the sales of passenger car tires in Egypt.

In addition, there has been an increase in the demand for taxis or rental cars in the country. The requirement for these ride-hailing services increased due to the growing inclination of the working population towards using taxis rather than personal or public transport. Additionally, tourists visiting the country also tend to use these taxis to explore different cities & places. The increasing usage of these taxis to travel to numerous leisure & attractions sites and workplaces around the country leads to the deterioration of the car tires. Hence, there is a requirement for frequent tire replacement, which drives the Egypt Passenger Car Tire market.

Moreover, the automotive sector in Egypt contributes significantly to the overall GDP of the country by providing employment to several residents & exporting some of the manufactured or assembled cars to other countries like the UAE, Libya, the UK, and others. Therefore, to uplift the economy, the government of Egypt is increasingly laying out initiatives & plans like the Auto Industry Development Strategy to encourage the setting up of automotive manufacturing units in the country. The setup of these manufacturing units would pose an opportunity for passenger car tire manufacturers like Bridgestone, Pirelli, and others to provide their tires to these OEMs in the forthcoming years.

Egypt Passenger Car Tire Market Driver:

Government Emphasis on Road Safety Accelerating Growth of Egypt's Passenger Car Tire – Over the past few years, there has been a surge in road accidents due to factors such as overspeeding, tire defects, and others. According to the American University in Cairo, the country per year witnesses around 12,000 fatalities. These accidents also poorly affect the economy of the country. In addition, as per Al-Monitor, in 2022, road accidents in Egypt led to the loss of approximately 3% of the overall country’s GDP. One of the reasons behind the road accidents is the usage of deteriorated tires, leading to less traction between the tire & roads.

Therefore, the government of Egypt laid the regulation compelling the consumers to ensure the replacement of the tires at regular intervals. These regulations regarding road safety have necessitated frequent tire replacement for every car owner, driving the Egypt Passenger Car Tire market. Moreover, these regulations are also surging consumers to seek premium quality tires since they offer better gripping & traction. Thus, the premium tires provided by companies like Bridgestone, Continental, etc., are witnessing growth and are expected to do well in coming years as well.

Egypt Passenger Car Tire Market Opportunity:

Growing Demand for Electric and Hybrid Cars – In recent years, there has been a significant rise in carbon emissions owing to rapid industrialization and the rising inclination of consumers towards personal transportation. According to the International Energy Association (IEA), in 2021, the annual carbon dioxide emission reached approximately 249.62 million tonnes, an increase of about 6% compared to 2020. These carbon emissions lead to environmental issues like climate change, biodiversity loss, and health hazards like respiratory diseases. As a result, the government of Egypt laid down initiatives & plans such as the National Climate Change Strategy 2050, to encourage the adoption of sustainable transportation, i.e., electric cars to minimize carbon emissions.

In addition, the government of Egypt is encouraging foreign automakers to establish their electric car manufacturing in the country by easing corporate tax laws and providing subsidies. The setup of the electric car manufacturing unit in the country would pose an opportunity for passenger car tire manufacturers like Bridgestone, Continental, Pirelli, etc., to offer their tires directly to these production units, enhancing the Egypt Passenger Car Tire Market during foreseen years.

Egypt Passenger Car Tire Market Challenge:

Import Dependency and Currency Fluctuations in Egypt’s Passenger Car Tire Market – Traditionally, the country has been dependent on the import of tires from other countries like Germany, China, and others due to the limited tire manufacturing units in the country. According to the International Trade Organization, in 2022, Egypt imported automotive tires worth USD 20.50 million. The import dependency of Egypt on the other countries makes the tire susceptible to the international trade dynamics. As a result, the prices of tires remain highly volatile in Egypt.

In addition, the geopolitical tension between countries like Russia & Ukraine also adversely affected the tire supply chain & rubber prices due to the halt in trade activities between the major European countries. This uncertainty of the trade activities led to a significant increase in tire prices. As a result, consumers in Egypt are inclined towards using retreaded tires rather than new ones, adversely affecting the Egypt Passenger Car Tire Market.

Further, currency fluctuations also played a critical role in influencing the cost of imported tires since the changes in the value of the Egyptian pound against foreign currencies, especially major trading currencies like the US dollar and the Euro, directly influenced the import costs for tire dealers and manufacturers. Therefore, the tire prices in the country witnessed a hike. Owing to this, the price-sensitive customers refrained from buying the new car tires, hindering the market growth.

Egypt Passenger Car Tire Market Trend:

Growing Preference for Convenient and Versatile All-Season Tires – In recent years, all-season tires have gained momentum in Egypt owing to their excellent features over summer & winter tires. Traditionally, the Egypt Passenger Car Tire market had been dominated by seasonal tires, under which drivers used to switch between summer and winter tires based on weather conditions. This puts an additional overhead costs on the car owners.

However, the emergence of all-season tires with features like convenience and versatility is gaining popularity among consumers. These tires work efficiently in all weather conditions like hot & arid climates, rainfall, and winters. As a result, consumers are increasingly adopting these tires since it eliminates the overhead costs of switching passenger car tires every season.

In addition, the growing popularity of these tires is posing an opportunity for tire manufacturers to set up their all-season tire manufacturing unit in Egypt. The setup of these units would eliminate the import dependency & make the tires more accessible to the end-users. Thus, the growing trend of opting for all-season tires rather than seasonal tires would positively impact the Egypt Passenger Car Tire Market.

Egypt Passenger Car Tire Market (2024-29): Segmentation Analysis

The Egypt Passenger Car Tire Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2029 at the national level. According to the analysis, the market has been further classified as:

Based on Vehicle Type:

• Sedan
• SUV
• Hatchback

The SUVs dominate the Egypt Passenger Car Tire Market owing to the growing consumer inclination towards larger passenger vehicles. The road infrastructure in the country is in extremely poor condition with potholes, cracks, and rough or uneven surfaces due to the limited budget allocation for the infrastructure improvement by the government. Therefore, the consumers in the country prefer to use cars with high ground clearance to have minimum impact of poor road conditions while driving the passenger cars. In addition, Egypt is culturally known for family values, and individuals in the country tend to purchase cars based on the number of members in the family. Therefore, individuals tend to choose SUVs since they have ample space & seating capacity of approximately 7 to 8 individuals on average. The rising prevalence of SUVs in Egypt raises the demand for tires designed specifically for SUVs & enhances the share of SUVs in the Egypt Passenger Car Tire Market.

In addition, the increasing launch of new & hybrid SUVs with advanced features like antilock brakes, lane departure warnings, and others would also lure more consumers in the forthcoming years, thus enhancing the share of SUVs in the foreseen years.

Based on Demand Type:

• OEM
• Aftermarket

The passenger car is used widely in Egypt for a variety of purposes including family outings, commuting to the office or any other place, city exploration, and others. The wide usage of passenger cars daily deteriorates the tires and adversely affects the orderliness of the passenger car. As a result, the consumers ensure regular tire replacement to maintain the vehicle's efficiency, amplifying the share of the aftermarket segment in the Egypt Passenger Car Tire Market. In addition, the car owners need to replace the tires after the tires have covered the distance of 40,000km to 50,000 km to enhance the passenger car performance.

Further, the government of Egypt has also laid down regulations which necessitate the replacement of the car tires to ensure the passenger & car safety while driving. As a result, more consumers are likely to comply with the regulations imposed by the government. Therefore, share of the aftermarket segment in Egypt Passenger Car Tire Market is expected to witness remarkable growth in the forthcoming years.

Gain a Competitive Edge with Our Egypt Passenger Car Tire Market Report

• Egypt Passenger Car Tire Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organization to gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• The Egypt Passenger Car Tire Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.