Ethiopia is undergoing several development projects to attain stability in its economy, owing to which the government is laying out favorable policies for attracting foreign investments in different industries, including the automotive & tire sectors.
As the country has a prominence of two-wheelers due to heavy traffic congestion & affordability of these vehicles, the tire sector is witnessing a steady growth here. In addition to this, since Ethiopia is driven extensively by tire imports, it has a robust presence & popularity of Chinese tires.
Since two-wheeler tires are affordable, easily available, and come in a wide variety to cater to different consumer requirements, the two-wheeler tire industry is expecting a pool of significant growth prospects during 2022-27.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||MRF, Bridgestone, Maxxis, CEAT, Sumitomo, Apollo, Michelin, Continental, Pirelli, Goodyear etc.|
|Unit Denominations||USD Million/Billion|
The Ethiopia Two-Wheeler Tire Market is projected to register a considerable CAGR during 2022-27. Since Ethiopia is a country that has always been under the influence of geopolitical tensions & absence of favorable policies for industrial developments, the overall economy was previously not in a good state.
Hence, the government is now focusing on addressing such issues and bringing favorable policies & norms that would attract foreign investments across different industrial verticals, including the automotive & tire industry. This aspect is anticipated to create lucrative opportunities for prominent tire manufacturers to establish their manufacturing units and promulgate the two-wheeler tire market over the coming years.
Besides, as the overall economic conditions of people are still undergoing steady improvements, the sales of two-wheelers are rapidly surging across Ethiopia, which, as a result, is positively influencing the demand for two-wheeler tires. Moreover, the growing consumer requirements for easily available & affordable tires for two-wheelers entwined with the dominance of Chinese tires are other prominent factors projected to fuel the growth of the Ethiopia Two-Wheeler Tire Market in the years to come.
Impact of Covid-19 on the Ethiopia Two-Wheeler Tire Market
In 2020, the Covid-19 pandemic had a catastrophic effect on the automotive & tire industry, majorly due to the imposition of stringent movement restrictions & frequent lockdowns by the government to curb the spread of this dreadful disease. The government suspended all business operations throughout the country, which led the market to undergo severe supply chain disruptions, delays in deliveries of raw materials & pre-produced tires, and overall reduced demand for two-wheelers amidst the crisis.
Besides, as the economy was already fluctuating, the advent of the pandemic further demonstrated an increasing public interest in spending only on essential goods. With this, the sales of two-wheelers & their tires observed a massive decline across Ethiopia.
Yet, just when the governments began to uplift the limitations after observing a decline in the number of Covid-19 cases, the leading tire manufacturers in the country resumed their business operations and adopted digital platforms to offer a wide variety of tires, along with door-step-delivery & fitting services.
Based on Vehicle Type:
Amongst all vehicle types, Motorbikes acquired the largest share of the Ethiopia Two-Wheeler Tire Market in previous years, and the same trend is likely during 2022-27. It attributes principally to the poor road infrastructure of the country that causes heavy traffic congestion, thereby augmenting the sales of Motorbikes across Ethiopia.
Besides, due to the utilitarian nature of motorbikes, their demand is rapidly surging and, in turn, positively influencing the tire market for two-wheelers. Furthermore, a gradually increasing influx of tourists is also instigating the adoption of rental motorbikes for local traveling and propelling the need for timely replacement & maintenance of tires. As a result, with a growing fleet of motorbikes across Ethiopia, the demand for two-wheeler tires is swiftly escalating and accelerating the overall market growth.
Based on the Demand Type:
Here, the Replacement demand is anticipated to dominate the market with the largest share over the forecast years, principally due to the increasing frequency of tire replacements owing to poor road conditions in the country. Moreover, with the growing awareness among people about the significance & advantages of timely replacement of tires entwined with the easy availability & affordability of Chinese tires in the country, the market for two-wheelers tires is anticipated to witness remunerative prospects in the coming years.
Key Driver: Raising Consumer Awareness about Timely Repairs & Replacement of Tires
With a rise in the number of two-wheeler ownerships, customers are becoming increasingly aware of the importance of providing timely repairs & replacement of tires to ensure the utmost safety & long life of their vehicles. It is the most prominent aspect instigating the leading players to increase tire imports & enhance their distribution capacities, i.e., projected to drive the Ethiopia Two-Wheeler Tire Market during 2022-27.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Ethiopia Two-Wheeler Tire Market is projected to grow at a considerable CAGR during 2022-27.
A. Growing awareness about the importance & benefits of timely repairs & replacement of tires in two-wheelers, coupled with the extensive presence of low-cost Chinese tires, are the key aspects expected to drive the Ethiopia Two-Wheeler Tire Market through 2027
A. A swift inclination toward two-wheelers due to poor road infrastructure causing heavy congestion is a key trend in the Ethiopia Two-Wheeler Tire Market.
A. Motorbikes are anticipated to emerge as an area of remunerative opportunities for the leading players in the Ethiopia Two-Wheeler Tire Market over the forecast years.