Automotive tire is the circular vehicle component made of rubber used to cover the wheel’s rim externally. The major function of the tire is to protect the wheel rim and offer tractive force between the road surface and the vehicle. Since it is manufactured from rubber, it also provides a flexible cushion, thereby reducing the impact of the vibrations and absorbs the shock of the vehicle. Rubber tire consists of tread, jointless cap piles, beads, and other materials, which include synthetic rubber, carbon black, and fabric. The South American tyre market is a rapidly developing market. As the economies in the region are rapidly growing and infrastructure development is taking place throughout the region; the South American tyre market finds itself on a suitable pedestal to grow upon. As per the research conducted by Bonafide Research under the title “South America Tire Market Outlook, 2027”, the market is evaluated to be more than 140 Million units as of 2021 and is expected to grow at a CAGR of almost 5% in terms of volume during the period of 2022 to 2027. In order to assess and study the regional trends and patterns in the South American tyre market, the research has been approached by looking at the market through appropriate segments and classifications. The segments that were made during the comprehensive evaluation of the markets were on the basis of vehicle types, end use demand and the demand of tyres on the basis of their construction design. The vehicle types include vehicles such as passenger cars, light commercial vehicles, medium and heavy vehicles, 2 wheeler vehicles, 3 wheeler and other vehicles including bicycles. The categorization on the basis of end use demand includes demand for replacement tyres and OEM demand for tyres. On the basis of design types, the tyre market is segmented as radial tyres and bias ply tyres. In order to have a broader understanding of the landscape of tyre market in South America, further segmentation has been made on the basis of countries, and the sales channels through which the products are made available to the distributors and customers.
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Factors such as increase in automotive production & sales across different vehicles segment, rise in competition among tire manufacturers and introduction of advanced technology in the manufacturing process are driving the market growth. However, volatile prices of raw materials and development in the market of retreading tires hinder the market growth. Furthermore, advancement in technology and fuel efficiency and safety concerns is expected to offer lucrative opportunities for the market growth. Recently, the automobile industry has been experiencing rapid growth owing to speedy industrialization, which has led to an increase in the sale of commercial vehicles such as trucks, tractors, and trailers. In addition, rise in disposable income of people and improvements in standard of living are the factors that increase the sale of luxurious passenger cars and premium segment bikes. Furthermore, electric vehicle sales are expected to increase during the forecast period. Also, decrease in prices of electric vehicle parts such as battery, transmission, and alternators propel the sale of electric vehicles. Thus, increase in the demand for vehicles across all segments among consumers leads to a rise in the production of automobiles and tires associated with it. Moreover, consolidation of the automotive sector that results in mergers and acquisitions among international and domestic vehicles manufacturers boost the growth of the automotive sector influencing the automotive tire market. Therefore, growth of the automobile sector is expected to increase the overall demand for tires. The South American market is majorly driven by Brazil contributing about 1/2 of the overall regional tyre market. Argentina and Colombia are the 2nd and 3rd biggest tyre markets in the region whereas the Rest of the South American region contributes close to 1/4th of the total tire market in 2021. As the region is exposed to economic vulnerabilities caused to global commodity price fluctuations, the region as some systematic issues that need strong policy support. During the period of 2022 to 2027, the rest of the South American regional markets combined excluding the major economies are projected to be registering a growth rate of more than 7% CAGR. As of 2021, it was derived that about 107.10 Million units of passenger car tyres were sold in the region, making it one of the major drivers of the tyre market in the region. 3 Wheeler and other tyres are expected to be the fastest growing category during the 2022 to 2027 period, expected to grow at a CAGR of more than 10% in volume terms. COVID-19 Impact The pandemic affected the tire market in the region quite enormously. The countries in the region were under strict travel restriction along with time-to-time lockdowns. This lead to the decrease consumption as well as less replacement needs for the tires in automotive sector. This decrease in demands affected the market quite heavily. Along with this the demand for new vehicles decreased in the region due to the inconsistent economic condition created by the spread of the Virus.
Key Players: Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, Nexen Tire Corp, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang Considered in the report • Geography: South America • Base Year: 2021 • Historical year: 2016 • Forecasted Year: 2027 Countries covered • Brazil • Argentina • Colombia • Rest of the South America
Aspects covered in the report • Market Size by Value (2016-2027F) • Market Size by Volume (2016-2027F) • Market Share by Vehicle Type • Market Share by End Use • Market Share by Design • Market Share by Sales Channel • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.