South Africa Replacement Tyre Market set to Surpass ZAR 6.74 Billion by FY’14
Escalating number of automobiles on South African roads will continue to oblige the replacement tyre market in the years to come.
South African tyre market is visibly one of the fastest growing markets in the African nations. Strong developments in roughly all the major automobile segments have infused tyre demand in the country. Additionally, tyre manufacturers are ramping up their production capacities in line with the growing automobile sales (domestic and exports). These capacity expansion plans will ultimately result in high tyre production, which is expected to grow at a CAGR of over 8.5% during FY’ 2011-14.
According to recently published report by TechSci Research “South Africa Tyre Market Forecast and Opportunities, 2017”, the replacement tyre market turnover in South Africa will surpass ZAR 6.74 Billion by the FY’14 thus growing at a CAGR of around 7%. The replacement tyre’s are considered as a primary focus area for the tyre manufacturers due to higher margins. The overall volume sales in replacement segment have recorded an increase of 9% from the previous year which were dominated by sales of passenger car tyres followed by commercial tyres. This growth has been in line with the growing automobile production in the nation which is recovering fast from the recession.
The South Africa tyre manufacturers have well established network of dealers and distributors to increase their penetration in the market. This network includes, company owned distribution channels such as Kwik fit of Apollo tyres and multi brand distribution retail partners such as Tiger wheels.
According to Karan Chechi, Research Director at TechSci Research, “the South African economy is witnessing a welcome revival after the global recessionary period which is driving the sales of new automobiles in the country in line with replacement tyre sales. The automobile sales in the country have witnessed an increase of around 16% from 2010-11 which is driving the fortunes for tyre companies in the region. The increasing exports and domestic tyre demand from automobile manufacturers and replacement market is forecasted to drive the South African tyre industry”.
“South Africa Tyre Market Forecast and Opportunities 2017” gives detailed and unprejudiced overview on the tyre market in South Africa. The report identifies the ongoing trends in the industry and anticipated growth depending upon changing industry dynamics. The report will help industry consultant, tyre companies and other stakeholders to align their market centric strategies according to ongoing and expected future trends.