Brazil Tire Market Segmented By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two Wheelers, Three Wheelers, Off-the-Road Vehicles (OTR)), By Tire Construction Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region, Competition, Forecast & Opportunities, 2020-2030

Market Overview:

Brazil Tire Market was valued at USD 125.37 Million in 2024 and is expected to reach USD 172.96 Million by 2030 with a CAGR of 5.51% during the forecast period. The prospects of the Brazilian tire market are bright due to a well-developed automotive industry as well as the previously mentioned history of market growth. The case of market has recorded massive growth in the past few years attributed to the following factors which depicts the growth potential of the market. The sales of automobiles have increased greatly due to an increase in the middle class population and better standard of living which has in turn created a huge market for tires. As a part of this, as of October 2024, Brazil's new vehicle market expanded dramatically in September 2024, with sales up 19.57 percent over the previous year. The National Federation of Motor Vehicle Distribution (ANFAVEA) reported 236,353 units sold. With increasing number of car owners as more Brazilians are able to afford cars, there will be demand for new tires as well as replacement ones. As such, this trend generates a constant stream of demand for tire manufacturing companies and distributors, which forms a stable market base. The growth of the vehicle population guarantees an ever-growing market for both the original equipment and replacement tires.

Key Market Drivers 

Growing Automotive Industry

A major factor that influences the Brazil tire market greatly is the growth of cars and the automotive industry in the country. Since Brazil is one of the biggest automotive markets in Latin America, the need for the both passenger and commercial vehicles remains high. This growth is as a result of rising middle income earners who have a higher purchasing power as well as higher demand for personal transport. Automotive production capacity and new car models in Brazil also boost the tire demand as new plants are established. Also, expansion of the automotive industry leads to demand for replacement tires because of the wear and tear of vehicles, thus boosting the demand for tires. This has led to manufacturers raising their production capacities and their portfolios to accommodate various car models, right from the compact ones to the large trucks.

Infrastructure Development

One of the major driver is the construction-related projects which are ongoing in Brazil such as road construction and rehabilitation which are aiding the tire market. Investments in infrastructure such as highways, urban roads, and rural roads is increasing the consumption of commercial as well as heavy-duty tires driven by the government. Improved access and roads ensure that the transportation is easier and safer hence promoting the use of vehicles and in extension tires hence increased demand. Commercial vehicle related infrastructure projects not only help expand the commercial vehicle industry but also the demand for long-wearing and highly-performing tires that can handle different terrains. According to the Brazilian Institute of Geography and Statistics (IBGE), the country’s road network extends 1.72 million km, with more than 65% unpaved, increasing tire wear rates and replacement frequency. Outlays for infrastructure are expected to persist, which would complement tire market development as new and improved roads improve supply chain and transportation.

Technological Advancements

The Brazil tire market is growing due to the innovations in technology used in manufacturing and designing of tires. Technological developments of new materials for tires, better patterns of treads, and efficient methods of construction of tires are resulting in ever improving high performing, economical, and durable tires. These technological enhancements ensure that some of the major issues that concern the consumer like safety, performance, and cost, are well catered for. For instance, the incorporation of smart tire technologies that enable monitoring of pressure and temperature of the tires improves the safety and precision of vehicles. Thus, as consumers and businesses in Brazil get informed on such developments, the market call for technologically superior tires rises. Manufacturers are inbound in their tire research and development endeavors to be able to produce better solutions that can meet the needs of the market and this has created a constant flood of new tires into the market.   

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Key Market Challenges

Economic Instability

Fluctuations in the economic status of Brazil is an issue that affects the tire market. High inflation rates, volatilities in the exchange rate and changes in economic cycles depress the consumers’ purchasing power and therefore affect the sales of vehicles. In the course of economic crisis, people as customers and automotive companies may decide to postpone or even cancel purchases of new tires thus resulting to cost cutting. This reduced demand has an impact on tire manufacturers and distributors who may stand to lose their revenues and face market instabilities. Also, economic instabilities can disrupt supply channels, increase cost of production, and thus reduce the profitability of tyre manufacturing firms in Brazil. These economic risks have to be managed by employing business model adaptability and venturing into new markets among other activities.

Competition from Imported Tires

There is strong competition from imported tires which create problems to the Brazil tire manufacturers and their profit margins. Tires that are imported may be cheaper than locally produced tires because of the lower cost of production or subsidies offered to exporters in the source countries may pull price-sensitive customers and organisations. Its outcome is that local manufacturers are forced to lower their prices so as to match that of imported products without compromising the quality and performance of the products. Also, the increased imports of tires may affect the production capacity of the tires and may reduce the market share of the domestic players. To overcome this challenge, Brazilian tire manufacturers have to work on the differentiation strategies such as innovation in product and services, effective operation management and improving the market coverage and services.

Key Market Trends 

Rise of Eco-Friendly Tires

The globalization of eco-friendly tires is gradually rising in Brazil due to more awareness on the environment and the pressure from laws. Green tires, that are developed with low rolling resistance, increase fuel economy and thus decrease the emissions of carbon dioxide and other greenhouse gases into the atmosphere. The consumers and organizations in Brazil are now developing a sensitivity to the environment and they want to use tires that support their green initiative. As a result, tire makers are on the lookout for new products and materials that can be used in the production of tires which are eco-friendly, for instance, recycled rubber and bio-based compounds. Further, the advancements in the tires which help in improving the efficiency in energy usage and recycling of the wastes are also being developed, which depicts the companies’ concern towards the environment.

Increase in the Sales of Tires through E-commerce Channels

The development in the internet shopping is rapidly shaping the Brazilian tire industry and the growing customer base and companies are opting to buy tires online. This he says is due to the ease of shopping online and the added factor of comparing prices and product varieties. Online platforms also have other related services like tire delivery and appointment for installation thus improving the experience of the customers. Tire retailers and manufacturers are also focusing on the digitalization of the market and creating easy-to-use web interfaces to reach this emerging demographic. It is anticipated that the trend of selling tires online is gradually increasing, primarily due to the factors such as development in technology and the growing preference of customers for ease of access.

Focus on Tire Retreading

The tendency of retreading is growing in Brazil due to its effectiveness and environmental friendliness as a solution to getting more use from the tires. Retreading is a process by which the usable tread of the used tire is revived and restored by putting a new tread on the tire. These steps not only present a vast amount of savings than buying new tires but also contribute to the conservation of the planet by minimizing the use of new products. In the past decade, a number of companies, especially in Brazil, have shifted to this process in the management of their operations costs and sustainability, especially those in the transport and logistics industries. A continuous technological progress with regard to the retreading technologies and the enhancements of the quality requirements are additional factors supporting this development, which makes retreaded tires suitable and competitive for various applications.

Segmental Insights

Vehicle Type Insights

In 2024, the market is led by the passenger car tire segment due to its huge share and acceptance by consumers. Nevertheless, the commercial vehicle tire segment is also significant here, which indicates the variety of vehicles in Brazil, ranging from personal automobiles to trucks. According to Brazil’s National Land Transport Agency (ANTT), there are over 2 million registered freight trucks operating nationwide, creating sustained demand for heavy-duty truck and bus tires. The passenger car segment due to the demand for tires that would last longer, consume less fuel, and ensure the safety of the driver and passengers is constantly growing in Brazil. The observed preferences of Brazilian consumers are directed to tires providing a comfortable ride, comfort, and low noise. Thus, tire manufacturers are trying to adapt to such changes by introducing new technologies that enhance performance and feel. Features like noise canceling designs and material that improve fuel economy are now emerging to fit the expectation of Brazilian consumers.

Light trucks and heavy-duty freight carriers are also a part of the commercial vehicles that are widely used in the country and contribute to the growth of the tire market in Brazil. These are mainly used in the transport of goods and people in the country and are expected to cover long distances and carry heavy loads hence the need for strong tires. According to the Ministry of Infrastructure, road freight accounts for over 60% of total cargo transported in Brazil, sustaining high consumption of commercial vehicle tires. The main strategic priority of manufacturers is the development and creation of high-quality tires that are safe and effective for the transportation processes. The improvements like deeper tread patterns and stronger shoulder protectors are vital for the commercial application, especially for the Brazilian terrain. Motor cycles, used for transport and sporting purposes, is another main category. The Brazilian terrain ranges from city streets to country tracks and thus requires tires with excellent adhesion, solidity and flexibility. Motorcycle tires should be designed to perform on a variety of surfaces including wet roads, city roads, off-road among others. Manufacturers are thus targeting tire designs that would offer safety and better performance to the motorcyclists in dynamic terrains of Brazil. New dynamics emerge from the growing adoption of electric vehicles (EVs) in Brazil which have added a new twist to the demand of tires. According to the Brazilian Electric Vehicle Association (ABVE), EV sales in Brazil rose 91% in 2023, reaching 93,927 units, creating demand for low-rolling-resistance and specialized EV-compatible tires.

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Regional Insights

The Southeast region of Brazil represents the dominating tire market in 2024, driven by its dense urbanization, strong industrial presence, and concentration of automotive production facilities. The region accounts for a large share of the nation’s vehicle ownership, supported by higher disposable incomes and better road infrastructure compared to other parts of the country. Growing demand from passenger cars and light commercial vehicles plays a critical role in pushing tire sales upward, as the region experiences a continuous rise in personal mobility and logistics requirements. Expanding fleets serving e-commerce and retail distribution channels are also creating steady replacement demand, further reinforcing market momentum.

The region benefits from significant infrastructure development and investment in transport connectivity, encouraging higher vehicle utilization and accelerating tire consumption. Road freight corridors that connect major urban centers such as São Paulo and Rio de Janeiro continue to generate strong demand for truck and bus tires, while the expansion of ride-hailing and delivery services is increasing the need for durable tires in the two-wheeler and light commercial segment. Growth in electric vehicle adoption in metropolitan areas is also expected to influence the preference for advanced tire technologies, adding further layers to market expansion. 

Recent Developments

• At Agrishow 2025, Ascenso unveiled the FTB 190 HD (I-3), Brazil’s first and only 600/50-22.5 high-flotation tire with 20 plies, designed for sugarcane trailers and wagons. Capable of carrying 1,000 kg more than similar-sized conventional tires, it offers high load capacity, durability in severe conditions, and reduced soil compaction. The model features a reinforced casing, larger contact patch for stability, and a tread compound resistant to cuts and stubble damage. With over 35 years of expertise, Ascenso is expanding in Brazil to meet local agricultural needs, highlighting the country’s strong growth potential in heavy-duty agricultural machinery applications.
• In 2023, Mitas introduced its AGRITERRA 02 SP “Soil Protector” tire to the Brazilian market at Agrishow 2023, designed for modern agricultural vehicles. Featuring Very High Flexion (VF) technology, it boosts load capacity by 40% while minimizing soil compaction. The tire’s low inflation pressure improves traction, ground protection, and durability, aided by hexa-core construction and steel breakers. Alongside, Mitas also showcased the AGRITERRA 04 for non-driven wheels and the HC 3000 range with Cyclical Field Operation (CFO) technology, both popular in Brazil’s agricultural sector for enhancing performance, fuel efficiency, and reducing wear in demanding field conditions.
• In 2022, Bridgestone Brazil has announced an additional investment in its tire production plant in Camacari, in the state of Bahia. The company has invested more than USD 14.7 million in the modernization and expansion of the factory, which brings the company's total investments announced since 2021 to more than USD 53.1 million for the Bahia plant.
• In 2023, an agreement has been signed by Pirelli for the acquisition of 100% of Hevea-Tec which is Brazil’s largest independent processor of natural rubber holding an enterprise value of approximately USD 22.8 million. The acquisition has enabled Pirelli to significantly increase its natural rubber supply in Latin America and ensure continuity in the region, and Pirelli also has plans to increase production volumes at Hevea-Tec.

Key Market Players

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

Report Scope:

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

• Brazil Tire Market, By Vehicle Type:

o   Passenger Car

o   Light Commercial Vehicle (LCV)

o   Medium & Heavy Commercial Vehicles (M&HCV)

o   Off-the-Road Vehicles (OTR)

o   Two-Wheeler

o   Three Wheelers

• Brazil Tire Market, By Tire Construction Type:  

o   Radial

o   Bias

• Brazil Tire Market, By Demand Category: 

o   OEM

o   Replacement

• Brazil Tire Market, By Region:   

o   North

o   Northeast

o   Central-West

o   Southeast

o   South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Brazil Tire Market.

Available Customizations:

Brazil Tire Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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