Algeria Tyre Market to Grow at 6% CAGR through 2020
Robust growth in automotive industry and expanding automobile fleet to drive tyre market in Algeria through 2020
According to a recently released TechSci Research report, “Algeria Tyre Market Forecast and Opportunities, 2020”, tyre market in Algeria is forecast to grow at a CAGR of over 6% through 2020. Prominent reasons driving this growth are healthy growth in automotive industry, expanding automobile fleet and growth in passenger car tyre market. Algeria automotive market is one of the most prominent markets in Africa, due to its large market size. Automobile market in Algeria has witnessed healthy growth during the last five years and is expected to continue to grow through 2020.
Prior to 2013, Michelin owned the only tyre manufacturing plant in Algeria which was closed down in 2013. Citing the demand-supply deficiency, majority of tyre manufacturing companies are operating in Algeria by importing tyres into the country and then distributing through a networkof exclusive distributors and dealers. Consequently, Algeria tyre market is currently totally import-dependent.
Further, there are no domestic automobile manufacturing facilities in the country. French manufacturer Renault opened its first SKD (semi-knocked-down) plant in Algeria in 2014, however, production is expected to start only by the end of 2016. Due to lack of domestic automobile manufacturing, Algeria tyre market is completely replacement driven. In terms of regional demand, Northern region accounts for more than 60% of overall tyre demand in Algeria. High demand emanating from this region can be attributed to the large vehicle fleet in the region.
“Passenger car tyre segment is the dominant tyre segment in Algeria, in volume terms, followed by commercial vehicle tyre segment. During the forecast period, sedan car tyre segment is expected to remain the highest contributing segment, owing to large fleet of sedan cars, which is continuously expanding. Passenger car tyre segment is anticipated to continue to retain its dominance in the market over the next five years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Algeria Tyre Market Forecast and Opportunities, 2020” has evaluated the future growth potential of Algeria tyre market and provides statistics and information on market structure, imports and future growth of Algeria tyre market. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in Algeria tyre industry.