New Zealand Tire Market Research Report Forecast: (2022-2027)

Market Definition

The tire industry across New Zealand is import-driven, with the prevalence of Chinese tires and the growing sales of SUVs & pickup trucks. Besides, as the average vehicle age across the country is relatively higher, it augments the need for timely repairs & maintenance, which leads to frequent tire replacements. Due to this, prominent players in the tire industry of New Zealand are set to observe lucrative opportunities in the coming years.

Market Insights

The New Zealand Tire Market is projected to grow at a CAGR of around 3% during the forecast period, i.e., 2022-27. The increasing population, improving economic conditions, & the growing consumer inclination toward private ownership of vehicles are the prime aspects driving the tire industry in New Zealand. 

Besides, as the country is highly import-driven due to the absence of tire manufacturing units, the prevalence of Chinese tires is rising rapidly and, in turn, fueling the market growth. Moreover, the government is laying out favorable policies to attract foreign investments in the establishment of tire manufacturing facilities in the country and, in turn, strengthen the overall tire industry. 

Additionally, to reduce carbon emissions and promote environmental sustainability, the government is encouraging the public to adopt Electric Vehicles (EVs) by offering incentives. It, in turn, is accelerating EV sales and instigating the leading market players to import EV-compatible tires, which projects lucrative growth for the tire industry in New Zealand over the coming years. 

Furthermore, the increasing number of construction & road infrastructure projects across the country, i.e., surging the demand for commercial vehicles, is another prominent aspect expected to propel the sales of robust tires and augment the overall market growth through 2027.

Impact of Covid-19 on the New Zealand Tire Market

In 2020, the advent of Covid-19 severely impacted the New Zealand Tire Market by introducing numerous unprecedented challenges like disruptions in the supply chain, shortage of raw materials, delays in the deliveries & import of tires, & fluctuations in the raw material & tire prices, among others. It, in turn, caused massive revenue losses to the leading companies in the industry. However, the market players made a paradigm shift to online platforms to sell their products via e-commerce websites & provide door-step delivery & installation to their customers, which somehow facilitated the market growth amidst the crisis.

Market Segmentation

Based on the Vehicle Type:

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

Amongst them all, Light Commercial Vehicles are anticipated to contribute prominently to the expansion of the New Zealand Tire Market during 2022-27. It attributes principally to the immense popularity of pickup trucks in the country, with the prevalence of Ford Ranger pickup trucks. Besides, the increasing government support in the form of incentives to EV buyers, including EV-pickup trucks, is another crucial aspect projected to fuel the overall market growth for light commercial vehicles in the coming years.

On the other hand, passenger cars are anticipated to dominate the market with the largest share through 2027, owing to the improved living standards of people & their growing inclination toward private ownership of vehicles. Besides, with the growing demand for SUVs and the mounting prevalence of automakers like Ford, Toyota, etc., the sales of passenger cars are rising across the country and generating growth opportunities for the leading players in the tire industry of New Zealand.

Moreover, the increasing penetration of rental car services is another reason behind the mounting sales of passenger cars, i.e., portraying frequent tire replacements, owing to longer driving hours associated with such services, coupled with the growing awareness among vehicle owners about the importance of timely inspection of tires. Hence, it shall further boost the sales of passenger car tires and, in turn, accelerate the overall market growth in the years to come. 

Based on the Demand Category:

• OEMs
• Aftermarket

Here, the aftermarket expects the largest share in the Tire Market of New Zealand during 2022-27, principally due to the absence of automotive OEMs. As a result, the country is highly dependent on tire imports from China, Thailand, the US, etc., i.e., augmenting the sales of aftermarket tires. Besides, growing public awareness about the benefits of these tires, like easy availability, affordability, & extensive options, among others, are also contributing to the overall growth of the aftermarket tire industry in New Zealand.

Moreover, since services like cab/taxi, rental cars, logistics, etc., have high prevalence across New Zealand, vehicles are driven on different terrains for longer hours, which leads to early wear & tear of tires. As a result, the frequent replacement of tires for enhanced vehicle safety & driving experience is also escalating aftermarket sales and augmenting the overall market growth. 

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 New Zealand 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 New Zealand Tire Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the New Zealand Tire Market based on the competitive benchmarking matrix?

What are the key results derived from surveys conducted during the New Zealand Tire Market study?

Frequently Asked Questions