Latin America is expected to be one of the fastest-growing markets for tires, across the globe. The market is poised to reflect strong growth in the demand for tires, owing to growth in sales of passenger cars, light commercial vehicles, and two-wheelers in the region. The vehicle owners in the region are adopting low-cost solutions to meet their needs and the market is heavily reliant on imports of tires from different parts of the globe. The government of major economies has been playing an instrumental role in the transformation of tire manufacturing sector or the whole of the automotive industry in the region.
The United States heavily exports auto-components including tires to countries such as Colombia, Peru, and Argentina. Chile’s tire market has been witnessing positive growth trend over the last five years. The growth in the market is attracting manufacturers to augment their production base for tires and other auto components and this trend is expected to witness significant growth in the regional market, during the next five years.
The passenger car vehicle segment holds the lion’s share in the Latin American tire market, followed by the light commercial vehicles market. The replacement market caters to more than 70% of the overall demand for tires in the region and the OEM segment owns the rest of the market.
However, the OEM segment is expected to reflect growth in demand for tires owing to the inauguration of new auto manufacturing facilities in the region by the global manufacturers in order to augment their production base in the region and capitalize on the growth opportunities in the market. High reliance on the customers on imported tires has also urged the manufacturers to augment the production of tires indigenously in Latin America with the support of the local governing bodies.
The industry is undergoing an overhaul with radial tires overpowering bias in the region. The pace of radialisation is higher in passenger car tire market, while LCV and MHCV segment registering a steady growth.
The tires with rim size varying between 15.1” to 18” dominated the market in 2019. The same trend is set to prevail during the forecast period as well. The summer tires have marked their footprints in the region, however, the all-season tires would continue to maintain their domination through 2025.
According to MarkNtel Advisors’ research report “Latin America Tire Market Analysis, 2020”, the Latin American market holds vast opportunities for foreign manufacturers to set up and produce tires in the domestic market. To make the most of these opportunities the tire manufacturing associations and local governing bodies in the region are organizing exhibitions and promoting the influx of international manufacturers in the market to enhance the domestic production base of tires in the region, through 2025.
Key Questions Answered in the Market Research Report
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
Q. What is the historical year, base year and forecast year considered in the research report Latin America Tire Market?
A. The historical data has been provided since 2015, while the base year is 2019 and the data is forecasted up-to 2025.
Q. What are the units or denomination for measuring market value and volume in the report?
A. The market size/industry size or the market value is measured in terms of USD Billion, while the market volume is measured in terms of Unit sold (Million Units).
Q. What would be the growth rate or CAGR of Latin America Tire Market during 2020-25?
A. The market size of Latin America Tire Market during 2020-25 is forecast to be around 5%.
Q. Who are the key competitors or players operating in Latin America Tire Market?
A. Continental, Bridgestone, Pirelli, Yokohama, Double Coin, Nokian, Cooper and few others are the leading players in the Latin America Tire Market.
Q. Does the report scope cover tire rim size wise market statistics also?
A. Yes, the scope of the report encompasses detailed tire rim size wise statistics such as market size, market segmentation, market overview based on various subcategories.
Q. Which country in Latin American region would emerge as an opportunity area for players in Latin America Tire Market?
A. Chile’s tire market has been witnessing positive growth trend over the last five years. The growth in the market is attracting manufacturers to augment their production base for tires and other auto components and this trend is expected to witness significant growth in the regional market, during the next five years.
Q. Which Vehicle type segment would emerge as an opportunity area for players in Latin America Tire Market?
A. The passenger car vehicle segment holds the lion’s share in the Latin American tire market, followed by the light commercial vehicles market.
Q. Which Tire type segment would emerge as an opportunity area for players in Latin America Tire Market?
A. The industry is undergoing an overhaul with radial tires overpowering bias in the region. The pace of radialisation is higher in passenger car tire market, while LCV and MHCV segment registering a steady growth.
Q. Which Rim Size segment would emerge as an opportunity area for players in Latin America Tire Market?
A. Based on the rim size the tires with rim size varying between 15.1” to 18” dominated the market in 2019. The same trend is set to prevail during the forecast period as well.
Q. On demand basis which segment would emerge as an opportunity area for players in Latin America Tire Market?
A. The replacement market caters to more than 70% of the overall demand for tires in the region and the OEM segment owns the rest of the market. However, the OEM segment is expected to reflect growth in demand for tires owing to the inauguration of new auto manufacturing facilities in the region by the global manufacturers in order to augment their production base in the region and capitalize on the growth opportunities in the market.
Q. Which season tire type segment would emerge as an opportunity area for players in Latin America Tire Market?
A. The summer tires have marked their footprints in the region, however, the all-season tires would continue to maintain their domination through 2025.
