South Africa Tyre Market Assessment, By Tyre [Winter Tyre, Summer Tyre, All Season Tyre], By Vehicle Type [Passenger Vehicles, Commercial Vehicle, Off the Road], By Tyre Type [Radial, Bias], By Rim Size [Upto 20 inches, Above 20 inches], By Demand Type [New Product (OEMs), Replacements], By Distribution Channel [Original Equipment Manufacturers (OEMs), Multi Brand Distributor, Single Brand Distributor, Online], By Region, Opportunities and Forecast, 2016-2030F

South Africa tyre market is anticipated to grow at a CAGR of 6.38% between 2023 and 2030. The market was estimated to be worth USD 3.45 billion in 2022 and is expected to reach USD 5.81 billion by 2030. The South Africa tyre market is a dynamic and integral component of the country's automotive sector, shaped by a combination of market drivers and innovative trends. As the largest automotive market in the African continent, South Africa experiences robust demand driven by factors such as population growth, increasing urbanization, and growing middle class with rising disposable incomes. The market is characterized by diverse climatic conditions, necessitating a broad range of tyre types from all-season to specialized designs. Key drivers include economic development, a surge in vehicle ownership rates, and government initiatives emphasizing road safety and environmental sustainability. Moreover, the South Africa tyre market is witnessing significant innovations, with manufacturers focusing on smart tyre technologies, eco-friendly materials, and designs optimized for fuel efficiency and safety.

For example, in September 2023, Continental launched the seventh generation of the Premium Contact 7 tyre, which is designed to prioritize maximum safety and comfort for families. One of its key features is the innovative RedChili compound, which enables the tyre to perform well across a wide temperature range, providing a high grip at low temperatures without the need for a warm-up period. The tyre is designed to offer precise handling on wet and dry roads, making it suitable for various weather conditions and vehicle types, including electric vehicles. The convergence of these market dynamics and innovations position the South Africa tyre market as a vital and evolving sector within the broader automotive landscape, contributing to the country's economic growth and technological advancements.

Growing Vehicle Production and Sales

South Africa tyre market is witnessing a surge in demand propelled by growing vehicle production and sales. With the automotive sector gaining momentum, marked by increased manufacturing and sales activities, the demand for tyres is rising. Economic factors, coupled with a burgeoning middle class, contribute to a higher rate of vehicle ownership, driving the replacement tyre market. Both local and global manufacturers are aligning their production capacities to meet this upswing in demand. The synergy between growing vehicle production, expanding sales, and the need for reliable, high-performance tyres underscores a positive outlook for South Africa tyre market, positioning it as a pivotal player in the continent's automotive landscape.

Expanding Mining and Agricultural Industry

The South Africa tyre market is experiencing notable expansion, fueled by the growth in the mining and agricultural industries. The mining sector's increasing activities demand specialized tyres capable of withstanding challenging terrains, contributing significantly to the replacement tyre market. Concurrently, the agricultural industry's modernization and technological advancements require durable and high-traction tyres for various farming equipment. The demand for tyres tailored to the specific needs of these industries is driving innovation in tyre technologies. The expansion in both mining and agriculture underscores the South Africa tyre market's adaptability to diverse sectors, positioning it as a crucial player in providing robust and reliable tyre solutions for the unique demands of these key industries.

For example, the VT-TRACTOR is the flagship of Bridgestone's premium agricultural tyre range, designed for modern, heavy, and sophisticated machines. It sets high standards in performance and soil protection, offering a large footprint for low soil compaction, outstanding traction for high productivity, and the ability to work at very low pressure to protect the soil. This tyre is engineered to meet the needs of the modern farmer, providing superior traction for high horsepower tractors.

Emergence of Online Tyre Sales Platforms

South Africa tyre market is witnessing a notable trend with the emergence of online tyre sales platforms. As e-commerce gains traction in the automotive sector, consumers are increasingly turning to online platforms to purchase tyres due to convenience, extensive product variety, and competitive pricing offered by these digital channels. Online tyre sales platforms provide a user-friendly experience, allowing consumers to browse, compare, and purchase tyres from the comfort of their homes. The shift aligns with changing consumer preferences for seamless and accessible buying experiences and reflects the industry's adaptation to the digital era. The emergence of online tyre sales platforms signifies a dynamic transformation in the South Africa tyre market's distribution landscape.

Advanced Tyre Technologies

South Africa tyre market is at the forefront of embracing advanced tyre technologies to meet the evolving needs of consumers. Manufacturers are incorporating innovative features, such as intelligent sensor technologies for real-time monitoring of tyre pressure and tread wear. Run-flat technology and self-healing capabilities are becoming increasingly prevalent, enhancing durability, and reducing the risk of tyre-related issues. Additionally, there's a growing emphasis on environmentally friendly solutions, with the integration of sustainable materials and manufacturing processes. These advanced tyre technologies align with global trends in safety, efficiency, and sustainability, reflecting the South Africa tyre market's commitment to providing consumers with cutting-edge products that cater to diverse driving conditions and preferences.

For example, the MICHELIN Pilot Sport 4 S K1 and MICHELIN Pilot Sport Cup 2 R K2 are custom tyres for the Ferrari 296 GTB. They feature Dynamic Response Technology for optimal steering transmission, Multi-Tread Compounding for varied traction, and Wavy Summit for improved responsiveness. The Pilot Sport 4 S K1 is suitable for road use, while the Pilot Sport Cup 2 R K2 is designed for track-focused performance, making them tailored for the specific needs of the Ferrari 296 GTB.

Impact of COVID-19

South Africa tyre market exhibited a steady trajectory driven by economic growth, rising vehicle ownership, and increasing urbanization. However, the onset of the pandemic disrupted the market, leading to temporary closures, supply chain challenges, and decreased consumer spending on non-essential items, including tyres. Post-COVID-19, the market gradually recovers as economic activities resume. The pent-up demand for replacement tyres, coupled with the resilience of the automotive industry, positions the South Africa tyre market for gradual growth. Additionally, a renewed focus on safety and the adoption of innovative tyre technologies aligns with post-pandemic consumer preferences, reflecting an evolving market adapting to the challenges posed by the global health crisis. 

Report Scope

“South Africa Tyre Market Assessment, Opportunities and Forecast, 2016-2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of South Africa tyre market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities, and forecast between 2023 and 2030F. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2022
Historical Period	2016-2021
Forecast Period	2023-2030
Projected Growth Rate	CAGR of 6.38% from 2023-2030
Revenue Forecast in 2030	USD 5.81 billion
Segments Covered	Tyre, Vehicle Type, Tyre Type, Rim Size, Demand Type, Distribution Channel
Regions Covered	Gauteng, Kwazulu- Natal, Western Cape, Eastern Cape
Key Companies Profiled	Continental Tyre SA (Pty) Ltd., Bridgestone South Africa (Pty) Ltd, Pirelli & C. S.p.A., Michelin Tyre Company South Africa (Pty) Ltd., Goodyear Tire & Rubber Company, Hankook Tire & Technology Co., Ltd, Sumitomo Corporation Africa Pty Ltd, The Yokohama Rubber Co., Ltd., BANDAG Southern Africa.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased). We can also provide the editable version of the report in PPT/PDF format on special request

In this report, South Africa tyre market has been segmented into the following categories:

·         By Tyre

o   Winter Tyre

o   Summer Tyre

o   All Season Tyre

·         By Vehicle Type

o   Passenger Vehicles

§  Two-wheeler

§  Three-Wheeler

§  Four-Wheeler

o   Commercial Vehicle

§  LCV

§  Medium & Heavy CV 

o   Off the Road

§  Agriculture

§  Mining & Construction

§  Others     

·         By Tyre Type

o   Radial

o   Bias

·         By Rim Size 

o   Upto 20 inches

o   Above 20 inches

·         By Demand Type

o   New Product (OEMs)

o   Replacements

·         By Distribution Channel

o   Original Equipment Manufacturers (OEMs)

o   Multi Brand Distributor

o   Single Brand Distributor

o   Online

·         By Region

o   Gauteng

o   Kwazulu- Natal

o   Western Cape

o   Eastern Cape

Key Players Landscape and Outlook

The South Africa tyre market features a competitive landscape with a blend of global giants and local players contributing to its dynamics. Major international tyre manufacturers such as Bridgestone, Michelin, and Goodyear maintain a significant presence, offering a diverse range of products. Domestic companies, including Continental Tyre South Africa, play pivotal roles in the market, showcasing the country's manufacturing capabilities. The market outlook is marked by a continual focus on technological innovation, addressing consumer demands for safety, durability, and sustainability. With South Africa being a key player in Africa automotive industry, the tyre market is poised for continued growth, driven by economic factors, increasing vehicle ownership, and advancements in tyre technologies.

For instance, in July 2023, the General Grabber X3 from Continental, known for its rugged performance and durability, was highlighted in the context of the challenging Rhino Charge event in Kenya. This event tests off-road tyres in demanding terrains and navigation challenges. The General Grabber X3 is well-regarded for its off-road performance and is a popular choice for various vehicles due to its maximum traction and decent on-road manners. It offers excellent wet and snow traction, good on-road manners, and a comfortable ride on gravel and off-road surfaces. The tyre is designed to provide a complete off-road tyre solution, making it suitable for diverse off-road driving needs. Tire reviews and tests reflect its positive performance and durability, making it a favorable option for off-road enthusiasts and various off-road applications.

For instance, in February 2023, Goodyear announced a new collaboration with Exclusive Wheel and Tyre Distributors as part of its South Africa truck tire business strategy. The partnership aims to enhance customer service and efficiency, demonstrating Goodyear's commitment to the industry's sustainable growth.

For instance, The International Trade Administration Commission of South Africa (ITAC) has recommended and the Minister of Trade, Industry and Competition, has approved definitive anti-dumping duties on passenger car, truck, and bus tires imported from China. The duties, ranging from 7.18% to 43.60% ad valorem, will remain in place until July 2028. The move is aimed at protecting the domestic tire industry and upholding fair trade practices.

Key Players Operating in the South Africa Tyre Market are:

·         Continental Tyre SA (Pty) Ltd. 

·         Bridgestone South Africa (Pty) Ltd

·         Pirelli & C. S.p.A.

·         Michelin Tyre Company South Africa (Pty) Ltd.

·         Goodyear Tire & Rubber Company

·         Hankook Tire & Technology Co., Ltd

·         Sumitomo Corporation Africa Pty Ltd

·         The Yokohama Rubber Co., Ltd.

·         BANDAG Southern Africa.

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