South Africa Automotive Tires Market

Introduction of the South Africa Automotive Tires Market Report

As per the International Trade Administration, in 2019, the automotive industry had a 6.4% contribution to the GDP of South Africa, which includes 4.0% from manufacturing and 2.4% from retail. The global vehicle production ranking of South Africa is 22^nd, having a 6.9% share in the market. The Automotive Production Development Program (APDP) aims to increase the local value, improve the manufacturing output, and export competitiveness of the automotive industry. The value of automotive export was USD 14.26 billion in 2019 and saw a significant increase of 11.36%. The companies such as Sumitomo Dunlop and Bridgestone are aiming for the production of tires locally in South Africa. In 2020, Sumitomo Dunlop launched a truck drive tire called SP835A which it has produced, developed, and tested locally in South Africa.

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Market Dynamic

Key Drivers and Emerging Trends

The factors which are responsible for bolstering the growth of the automotive tires market size in South Africa include the rising sales of commercial and passenger vehicles owing to the expansion in the commercial sector and the increasing purchasing power of people in the country. Moreover, the growing number of export & production of the automotive tires in the country and surging demand for the replacement tires are the factors which are further fuelling the growth of the market over the forecast period. In 2018, Sumitomo Rubber South Africa (Pty) Ltd. began the production of tires for buses and trucks for the market across South Africa. The company invested USD 68 million for installing advanced and new facilities for production in the South Africa factory.

In addition to this, the rising inclination of the manufacturers towards the implementation of several advanced technologies for the production of automotive tires with enhanced performance, such as the puncture-proof airless concept tire of Michelin that is supposed to be virtually maintenance-free, is a key factor that is augmenting the growth of the market in the upcoming years.

Restraint in the South Africa Automotive Tires Market

The factor that is responsible for hindering the growth of the South Africa automotive tires market includes the growth in the import of second-hand tires in the country, creating a challenge for the international and local players to increase their presence in the country.

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Type – Segment Analysis

Based on the type, the radial segment is projected to grow at a higher CAGR during the forecast period. The factors which are responsible for propelling the growth of radial tires in the market include the rising use of radial tires in the country and the growing production of such tires in the market. For instance, in 2020, Sumitomo Rubber launched a state-of-the-art bus and truck radial factory in Ladysmith, Kwazulu-Natal. Moreover, the low cost of such tires and the ability to offer less resistance & vibration, and flexible sidewalls are some other factors that are further accelerating the demand for such tires in the market.

Vehicle Type – Segment Analysis

On the basis of vehicle type, the passenger car segment is anticipated to rise at a higher CAGR over the forecast period. The factor responsible for proliferating the growth of the market in this segment includes the rising demand of passenger cars among the consumers and the growing number of launches of such vehicles in the market. As per the National Association of Automobile Manufacturers of South Africa, the country recorded domestic sales of 536,626 units of passenger cars in the year 2019. In 2019, Volkswagen Group South Africa dominated the passenger cars market with 89,353 vehicles sold in the country. The factory in Uitenhage manufactured 161,954 vehicles, and the company held 23.4% of the passenger cars market share across the country.

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Key Developments: 

• • In 2020, Pirelli Tyre S.p.A launched the Scorpion XC RC racing tire, which is a part of the product portfolio of mountain bikes. This tire is developed to meet the demand of the riders, which includes Samuele Porro and Vlad Dascalu.
  • In 2020, Bridgestone finalized the closure of the agri manufacturing plant in Port Elizabeth, South Africa. The company saw its financial performance under pressure because it was hard-hit by several economic conditions and industrial factors. The major industry factor was the bias off-the-road and industrial tires, which were developed at the Port Elizabeth plant were being phased out in the market owing to the rising trend in the production and utilization of radial tires worldwide. 

Segments covered in the Report:

The South Africa automotive tires market has been segmented on the basis of type, season, vehicle type, rim size, and distribution channel. Based on type, the market is segmented into bias and radial. Based on the season, the market is segmented into summer, winter, and all seasons. Based on vehicle type, the market is segmented into the passenger car, LCV, buses, and trucks. Based on rim size, the market is segmented into less than 15 inch, 15-20 inch, and more than 20 inch. Based on the distribution channel, the market is segmented into OEM and aftermarket. 

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Key questions answered in this research report:

• • At what pace is the South Africa automotive tires market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the South Africa automotive tires market? What will be the impact of drivers and restraints in the future?
  • Which type generated maximum revenues in 2019 and identify the most promising type during the forecast period?
  • What are the various distribution channels of the South Africa automotive tires market, and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

South Africa Automotive Tires Market by Type

• • Bias
  • Radial

South Africa Automotive Tires Market by Season

• • Summer
  • Winter
  • All Seasons

South Africa Automotive Tires Market by Vehicle Type

• • Passenger Car
  • LCV
  • Buses
  • Trucks

South Africa Automotive Tires Market by Rim Size

• • Less than 15 Inch
  • 15-20 Inch
  • More than 20 Inch

South Africa Automotive Tires Market by Distribution Channel

• • OEM
  • Aftermarket