Australia Tire Market By Vehicle Type (Passenger Car, LCV, M&HCV, OTR and Two-Wheeler), By Tire Construction Type (Radial and Bias), By Sales Channel (Offline and Online), By Region, Competition Forecast & Opportunities, 2021-2031F

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 3.66 Billion
CAGR (2026-2031)	4.73%
Fastest Growing Segment	Radial Tires
Largest Market	ACT and New South Wales
Market Size (2031)	USD 4.83 Billion

Market Overview

The Australia Tire Market will grow from USD 3.66 Billion in 2025 to USD 4.83 Billion by 2031 at a 4.73% CAGR. Tires are critical automotive components enabling vehicle mobility, safety, and performance across diverse operational conditions in Australia. The market's growth is primarily driven by an expanding national vehicle parc, sustained road freight volumes necessitating replacement tires, and robust new vehicle sales. According to the Federal Chamber of Automotive Industries, in 2025, Australia's new vehicle market recorded 1,209,808 units.

However, a significant challenge impeding market expansion is the declining domestic retread tire industry, impacted by increased availability of lower-cost imported tires. According to Tyre Stewardship Australia, in 2025, the retread tire industry's share of the Australian heavy commercial replacement tire market decreased to approximately 10%. This trend poses risks to local manufacturing capacity and circular economy objectives.

Key Market Drivers

Rising Vehicle Ownership and EV Adoption Drive Tire Demand
Increasing vehicle ownership and sales significantly propels the Australia tire market. As the national vehicle parc expands, demand for original equipment tires on new vehicles and a steady requirement for replacement tires continues to grow. This fundamental driver reflects consistent consumer purchasing patterns and population growth. According to the Bureau of Infrastructure and Transport Research Economics's "Road vehicles Australia, January 2025" report, there were 22.31 million registered motor vehicles as at 31 January 2025, marking an approximate 2.6% increase since January 2024. This ongoing expansion directly correlates with increased tire consumption for diverse vehicle types. The rising adoption of electric vehicles also presents a growing niche for specialized EV tires.

Expansion of Commercial Fleets and Mining Activity Fuel Tire Replacements
The expanding commercial vehicle fleet and logistics sector represents another crucial driving factor for the Australian tire market. Sustained growth in road freight volumes, essential for supporting industries including mining, agriculture, and retail, necessitates a continuous supply of durable and high-performance tires for trucks and other commercial vehicles. According to the Bureau of Infrastructure and Transport Research Economics's "Road vehicles Australia, January 2025" report, light commercial vehicles comprised 4.2 million vehicles on 31 January 2025, underscoring the substantial size of this fleet. These vehicles operate under demanding conditions, leading to higher wear rates and thus more frequent tire replacements. The heavy-duty and off-the-road tire segments particularly benefit from robust activity in mining and construction. Furthermore, according to Tyre Stewardship Australia's "Are We There Yet? Australia's Journey Towards a Circular Economy on Tyres" report, in the 2023-24 financial year, Australia generated 537,000 tonnes of used tyres, highlighting the overall scale of tire consumption.

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Key Market Challenges

Erosion of the domestic retread sector due to cheaper imports
The decline of the domestic retread tire industry presents a notable challenge to the growth of the Australian tire market. This trend is primarily driven by the increasing influx of lower-cost imported tires, which exert significant price pressure across the market. Consequently, local manufacturing capacity for retread tires diminishes, affecting the specialized segment that previously offered a sustainable and cost-effective alternative for heavy commercial vehicles. The availability of inexpensive imported alternatives reduces the incentive for fleets to utilize domestic retreading services, thereby contracting a vital component of local tire production.

Imports surge undermines local investment and retread viability
This shift directly hampers the market's growth by undermining local investment and value creation within the domestic industry. According to Tyre Stewardship Australia, in 2025, the sale of new heavy commercial drive and trailer tires surged by approximately 80%, from 1.5 million to 2.7 million units, largely propelled by low-cost, single-use imports. This substantial increase in imported new tires displaces potential demand for locally retreaded products, limiting the ability of domestic producers to expand operations, invest in new technologies, or generate local employment. The result is a diminished overall domestic market share and reduced economic contribution from local tire manufacturing.

Key Market Trends

Sustainable tire development and circular economy opportunities
The Australian tire market is increasingly shaped by the significant trend of sustainable and eco-friendly tire development, driven by rising environmental consciousness and circular economy objectives. Manufacturers are incorporating recycled and bio-sourced materials, reducing production's carbon footprint, and designing for extended lifecycles. These efforts respond to consumer demand for greener products and industry commitments to resource efficiency. According to a new study from Tyre Stewardship Australia, August 2025, in the "Are We There Yet? Australia's Journey Towards a Circular Economy on Tyres" report, only 26 per cent of all tyres recovered in 2023–24 were actually recycled or reused, highlighting a substantial opportunity for improving circularity and value recovery. This also fosters advanced end-of-life tire management towards higher-value applications.

Rapid digitalization of tire sales and services
A concurrent and impactful trend is the rapid digitalization of tire sales and services across Australia. This encompasses expanding online platforms, sophisticated digital booking systems for fitting and maintenance, and growth in mobile tire services. These digital channels offer consumers enhanced convenience and transparency for tire research, comparison, and purchase, fundamentally reshaping traditional retail. Businesses are therefore investing in robust e-commerce and integrated customer engagement solutions. For instance, JAX Tyres & Auto saw a 20.6% increase in revenue year-to-date following a significant digital platform upgrade, as noted in May 2025 regarding its Optimizely CMS 12 implementation, demonstrating the direct benefits of adopting digital strategies for market competitiveness.

Segmental Insights

Radial Tires: Fastest-Growing Segment in Australia Driven by Performance and Regulatory Support
The key segmental insight for the Australia Tire Market highlights radial tires as the fastest-growing segment, primarily due to their superior performance attributes. Radial tires offer enhanced fuel efficiency, durability, and stability, alongside improved load-bearing capacity crucial for Australia's diverse driving conditions, including extensive road networks and demanding heavy-duty applications in sectors like mining and construction. This growth is further supported by continuous technological advancements in tire manufacturing and consumer preference for safer, higher-performing products. Regulatory updates, such as those from the Tyre and Rim Association of Australia (TRAA), also acknowledge the expanded capabilities of high-load radial tire technologies, contributing to their increased adoption across various vehicle types.

Regional Insights

ACT and NSW: Market Leaders Driven by Population, Infrastructure, and Regulation
The Australian Capital Territory and New South Wales collectively represent the leading region within the Australia Tire Market. This dominance stems from the substantial concentration of population and significant urban centres, including Sydney and Canberra, driving considerable demand for both passenger and commercial vehicle tires. The region benefits from extensive, well-developed road infrastructure that supports a vast network of commercial fleets and private vehicles, necessitating consistent tire replacements. Furthermore, ongoing government initiatives focused on infrastructure development, such as road network upgrades, contribute to heightened demand for heavy-duty and commercial tires. Regulatory bodies like Transport for NSW, through stringent road safety standards, also encourage timely tire replacements.

Recent Developments

• In July 2025, a collaborative research team successfully validated a groundbreaking system of rubber shock absorbers for railway tracks in Australia. The project, involving the University of Technology Sydney, Sydney Trains, Transport for NSW, EcoFlex, and Bridgestone, utilized recycled tires to create these innovative shock absorbers. This technology aimed to significantly reduce railway track maintenance costs and provide a sustainable solution for the approximately 50 million end-of-life tires generated annually in Australia. The system demonstrated its ability to protect ballast and prevent soil settlement, extending track life and improving network reliability.
• In October 2024, Michelin Australia formalized a Memorandum of Understanding with Monash University, deepening their collaborative relationship. This partnership aimed to foster learning, enhance employability, and facilitate talent development within Australia. The agreement outlined plans for new Michelin internships starting in 2025, alongside various initiatives focused on research, career progression, and broader industry engagement. This collaboration represented Michelin's commitment to technological leadership and sustainable growth in the Australian market by investing in future talent and research.
• In April 2024, Continental Tyres introduced its new MaxContact MC7 tire to the Australian market. This high-performance product, specifically developed for the Asia-Pacific region, emphasized enhanced control through precise steering, dynamic handling, and exceptional stability across various driving conditions. It was engineered with specific features to address the demands of Australian drivers, including improved wet grip and shorter braking distances. The launch expanded Continental's offerings for sporty and performance-oriented vehicles, becoming available Australia-wide from June 2024.
• In April 2024, Goodyear & Dunlop Tyres ANZ launched the Goodyear Wrangler Boulder MT in Australia, expanding its 4x4 tire range. This new all-terrain tire was designed for challenging off-road conditions, including mud, sand, and rocks, leveraging Goodyear's innovative technology. It featured three-ply Duraply Technology for sidewall and tread protection and TractiveGroove Technology for superior grip. The Wrangler Boulder MT was made available in various sizes, catering to the growing Australian off-road vehicle market and adventurous drivers.

Key Market Players

• Bridgestone Corporation
• Michelin Group
• Goodyear Tire & Rubber Company
• Continental AG
• Pirelli & C. S.p.A.
• Yokohama Rubber Co. Ltd.
• Hankook Tire & Technology Co. Ltd.
• Sumitomo Rubber Industries Ltd.
• Toyo Tire Corporation
• Kumho Tire Co. Inc.

By Vehicle Type	By Tire Construction Type	By Sales Channel	By Region
Passenger Car LCV M&HCV OTR and Two-Wheeler	Radial and Bias	Offline and Online	Australia Capital Territory & New South Wales Northern Territory & Southern Australia Western Australia Queensland Victoria & Tasmania

Report Scope:

In this report, the Australia Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Tire Market, By Vehicle Type:

• Passenger Car
• LCV
• M&HCV
• OTR and Two-Wheeler

• Australia Tire Market, By Tire Construction Type:

• Radial and Bias

• Australia Tire Market, By Sales Channel:

• Offline and Online

• Australia Tire Market, By Region:

• Australia Capital Territory & New South Wales
• Northern Territory & Southern Australia
• Western Australia
• Queensland
• Victoria & Tasmania