Market Overview
A tire is a ring-shaped element of a vehicle that surrounds the rim of a wheel. It transfers a vehicle’s massive load from the axle to the ground through the wheel and offers traction on the surface over which the vehicle travels.
South Africa is one of the leading economies in the African continent. Due to the burgeoning purchasing power of consumers, the country is likely to witness a significant increase in the sales footprint of vehicles. Moreover, the growth in the commercial sector, industries, mining, and exploration activities are also likely to escalate vehicle sales in South Africa.
According to MarkNtel Advisors’ research report, “South Africa Tire Market Analysis, 2021,” the market shall witness growth at a CAGR of around 4.5% during 2021-26. It attributes to the rising focus of the country on transforming the automotive industry. In addition to this, the growing population and preferences for passenger vehicles also positively influence the growth of the Tire Market in South Africa.
The government has introduced a master plan for the automotive market to increase exports and domestic demand. The South African Automotive Master Plan 2035 is to transform the country into a manufacturing hub for automobiles. It includes growing vehicle production in South Africa from 0.68% to 1%, increasing the domestic vehicle production to alternate between 1.3 million and 1.5 million units by 2035.
COVID-19 pandemic has Negatively Impacted the Market Growth
The outbreak of the novel coronavirus pandemic has adversely affected almost all end-user verticals, including automotive and tire industries. Although, the assembling plants in Africa and distributors in the country have witnessed a significant increase in the tire market growth throughout January and February. However, in March, due to the lockdown imposition, tire imports faced a huge setback.
However, as the government has started relaxing its restrictions and the lockdown has been lifted to resume business activities, the tire market in South Africa shall start growing steadily in the forecast period. Additionally, due to the rising concerns of the spread of disease, consumers have shifted their preferences towards owning a car instead of taking public transport. It shall fuel the sales of passenger cars, which, in turn, shall boost the growth of the tire market in the country.
Market Segmentation
Two-Wheeler Accounted for the Largest Market Share
Based on Vehicle Type, the market bifurcates into Passenger Cars, Light Commercial Vehicles, Medium & High Commercial Vehicles, Off-the-Road Tires, and Two-Wheelers. Two-Wheeler is the most bought motor vehicles in South Africa. The growth of the two-wheeler segment primarily owes to rapidly expanding FMCG sectors, where food delivery companies provide lucrative opportunities to drive the demand for two-wheelers, mounting the tire market growth. Besides, the rising trend of ride-hailing apps like Uber cabs is another crucial factor shifting the dynamics of the entire transportation & automobile industry. This trend is likely to fuel the growth of the two-wheeler segment in the market, cites MarkNtel Advisors in their research report, “South Africa Tire Market Analysis, 2021.”
Bias Segment Attained the Highest Market Share
Among Radial and Bias Tire types, the bias segment acquired the largest share in the South Africa Tire Market in the previous few years. The two-wheeler vehicle is highly preferred in South Africa, which, in turn, increases the use of bias tires as these are well-used in abundance in two-wheeler vehicles. However, on the other hand, radial tires are commonly used in adventure & sports motorcycles, which have comparatively less usage in South Africa. With the rising use of sports motorcycles and other cars that require radial tires, the demand for radial tires is likely to increase substantially in the forecast timeline.
Market Driver
Burgeoning Sales of the Passenger Cars to Boost the Market Growth
The most prominent factors driving the growth of the tire market in South Africa during the forecast period are the rapidly developing tire technologies with excellent fuel efficiency & inflation pressure entwined with the surging sales of passenger vehicles.
Market Challenge
Mounting Import of Second-Hand Tires is the Biggest Market Challenge
The rising import of second-hand tires in South Africa is likely to be one of the most significant challenges for the local and international manufacturers, thereby creating a hindrance for OEMs. Further, the surging risk of consumers’ lives as most road accidents occurred due to tire bursts is another critical aspect that could hamper the tire market growth.
Competitive Landscape
According to MarkNtel Advisors, the major leading players in the South Africa Tire market are Bridgestone, Sumitomo, Goodyear, Continental, Michelin, Hangzhou Zhongce Rubber, Triangle, Kumho, Yokohama, and Pirelli.
Key Questions Answered in the Market Research Report:
1. What are the overall market statistics or estimates (Market Overview, Market Size- by Value, Forecast Numbers, Market Segmentation, and Market Shares) of the South Africa Tire Market?
2. What is the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the South Africa Tire Market?
4. Who are the key competitors, their key strengths & weaknesses, and how they perform in the South Africa Tire Market based on a competitive benchmarking matrix?
5. What are the key results derived from the market surveys conducted during the South Africa Tire Market study?
Market Outlook, Segmentation, and Statistics
1. Impact of COVID-19 on South Africa Tire Market
2. Market Size & Analysis
2.1. Market Revenues
2.2. Units Sold
3. Market Share & Analysis
3.1. By Type of Vehicle
3.1.1. Passenger Car
3.1.2. Light Commercial Vehicle
3.1.3. Medium & High Commercial Vehicle
3.1.4. Off the Road Tire
3.1.5. Two-Wheeler
3.2. OEM vs. Replacement
3.3. By Radial vs. Bias
3.4. By Region
3.4.1. East
3.4.2. Central
3.4.3. North
3.4.4. South
3.4.5. West
3.5. By Season
3.5.1. All Season
3.5.2. Summer
3.6. By Sales Channel
3.6.1. Direct
3.6.2. Authorized Distributors
3.6.3. Online
3.6.4. Others
3.7. By Tire Rim Size
3.7.1. Up-to 12”
3.7.2. 12.1” to 15”
3.7.3. 15.1”- 18”
3.7.4. 18.1” to 20”
3.7.5. 20” to 22.5”
3.7.6. 22.6"- 25"
3.7.7. 26"-35"
3.7.8. 36"-48"
3.7.9. Above 48"
3.8. By Competitors
3.8.1. Competition Characteristics
3.8.2. Market Share & Analysis
3.8.3. Competitive Matrix
4. South Africa Tire Market Hotspots & Opportunities
5. South Africa Tire Market Regulations & Policy
6. Key Strategic Imperatives for Success and Growth
7. South Africa Competition Outlook
7.1. Competition Matrix
7.2. Company Profile