The tire industry in Kenya is experiencing rapid expansion, principally due to massive tire imports, majorly from countries like China, entwined with the increasing competition from American & European countries. Besides, the active participation of prominent automakers & tire manufacturers in the import, production, & distribution of tires for an extensive range of vehicles is another aspect playing a crucial role in expanding the tire industry of Sudan. Moreover, the immense support from the government through investments & favorable policies is projecting new companies & investments in Kenya and contributing to the growth of the tire industry.
The Kenya Tire Market is projected to grow at a CAGR of around 5.5% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the improving economy of Kenya, increasing purchasing power & changing living standards of people, i.e., displaying their greater inclination toward vehicle ownership. It, in turn, is boosting the sales of vehicles and directly impacting the tire industry in the country.
Besides, various favorable government policies are helping in stimulating the import business for tires and attracting Foreign Direct Investments (FDIs) into the country. Moreover, the advent of new technologies in tires for high performance and the constant launch of new vehicle models are also likely to boost the automotive & tire industries in the country.
Furthermore, the active participation of the leading tire manufacturers in introducing new low-cost tires to beat the dominance of Chinese brands and benefit the cost-sensitive population is another prominent aspect projected to boost the tire market in Kenya over the forecast years.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Michelin Kenya Sdn Bhd, Giti Tire Pte. Ltd., MRF, Pirelli & C.S. p.a, Goodyear Tire & Rubber Industries, Sumitomo Rubber Industries, Ltd., Maxxis Tires Kenya, Kumho Tyre, Apollo Tyres Ltd., Bridgestone Middle East & Africa FZE|
|Unit Denominations||USD Million/Billion|
Key Trends in the Kenya Tire Market
Owing to the massive import business for tires & automobiles, favorable government policies, & expanding vehicle fleet, among other factors, Kenya holds great potential to enhance vehicle sales and generate growth prospects for the tire industry in the coming years.
Impact of Covid-19 on the Kenya Tire Market
The advent of Covid-19 in 2020 had a decelerating effect on most industries, and the Kenya Tire Market was no exception. With the imposition of stringent movement limitations, lockdown, cross-border trade restrictions by the government to curb the spread of this dreadful disease, the market witnessed several unprecedented challenges. Since the tire industry in Kenya is driven majorly by imports, trade restrictions severely impacted the supply of tires across the country.
Besides, the transportation & logistic services were also hampered amidst the crisis, which, in turn, resulted in significant delays in the deliveries of pre-produced tires, unavailability of raw materials, and massive demand & supply gaps.
However, with the gradually declining number of Covid-19 cases, the government uplifted the restrictions and allowed the recommencement of tire manufacturing operations. As a result, the leading players resumed production & distribution across the country to recover from revenue losses & meet the burgeoning consumer demand for tires. This revival is anticipated to encourage the market players to bridge the demand & supply gap and fuel the market growth in the coming years.
Based on the Vehicle Type:
Amongst them all, passenger cars acquired the largest share in the Kenya Tire Market, and the same trend is likely in the coming years. It owes principally to the growing demand for private vehicle ownership, i.e., displaying a mounting fleet of passenger vehicles.
It, in turn, is instigating automakers to increase their production & import capabilities to meet the escalating consumer requirements for passenger cars. Hence, this burgeoning demand is positively influencing the production & distribution of tires along with their availability & affordability across the country.
Besides, since a large population in the country is cost-sensitive, the sales of second-hand passenger cars are gaining swift momentum across the country and driving the tire market. Hence, based on these aspects, the Kenya Tire Market is all set to witness significant growth with the burgeoning adoption of passenger cars over the forecast years.
Based on the Demand Type:
Here, the Replacement demand is anticipated to display the fastest growth in the Kenya Tire Market during the forecast period. It attributes principally to the country being highly dependent on tire imports due to the unavailability of automotive & tire manufacturing facilities, i.e., displaying the scarcity of OEMs (Original Equipment Manufacturers).
Besides, benefits like easy availability of an extensive range of tires under different budgets for all vehicle types are also likely to stimulate the replacement market growth. Moreover, growing awareness about the significance of timely tire replacement & maintenance is another crucial aspect projected to augment the replacement demand and fuel the overall market growth during the forecast period.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Kenya Tire Market is projected to grow at a CAGR of around 5.5% during 2021-26.
A. Passenger cars are projected to emerge as an area of remunerative opportunities for the leading players in the Kenya Tire Market through 2026.
A. Rapidly growing vehicle fleet entwined with increasing competition between prominent tire manufacturers to bring low-cost tires & beat the Chinese dominance is the key growth opportunity anticipated to drive the Kenya Tire Market in the coming years.