The market has grown significantly because
of the rising global popularity of various forms of automotive racing events in
the country. Popular car racing series like Formula One, NASCAR, and motorcycle
races were the initial focus of competitive automotive racing because they
attracted a lot of sponsorships and promotional activities. As time went by,
there have been a variety of racing competitions, featuring vehicles with
various engine sizes, including SUVs, dirt bikes, monster trucks, solar cars,
sprint cars, and touring cars. The off-road activities have also increased in
Saudi Arabia, which has led to the rise in demand of high-performance tires in
the country.
Recent Developments
The high-performance vehicle
in the Saudi Arabia is witnessing the rise in demand for the high-performance
tires as racing events in the country are taking place like the FIA World
Touring Car Racing WTCR series in Jeddah, Saudi Arabia. Companies like Goodyear
Tire and Rubber Company have also participated in WTCR, and is the official
partner in this. Similarly, other racing events and competitions have also led
to the rise in the demand of the high-performance tires in the country. At the
same time, new high-performance tires’ launch for high-speed vehicles for extra
safety and comfort is also diversifying the tire portfolios of the key tire
players in the country like Al-Talayi company, largest distributor of
Bridgestone tires in Saudi Arabia has introduced Turanza T001, a new tire, the
tire is especially designed that guarantees safe performance when driving at
high speeds.
The rise in the category
of devoted by sports car enthusiasts has led to the rise in the demand of high-performance
tires in crossover vehicles, sport utility vehicles and passenger cars. The sales
of high-performance tires is increasing as a result of rising purchases of
these preferred vehicles in the country, and the increase in the sales of the
high end vehicles in the passenger car segment is also leading to the rise in
the demand of the high performance tires in Saudi Arabia. Customers’ preference
for high performance tires is primarily influenced by the original
equipment (OE) vehicle market. The benefits of these tires are being made known
to consumers through expanding fitments by top automakers, which is fueling a
replacement market for them in the Saudi Arabia.
Rise in the Demand for Replacement High
Performance Tires
As Saudi Arabia possesses a fleet of high-end vehicles, the rise in the
racing activities is leading to the rise in the demand of OTR tires. To
capitalize on the lucrative aftermarket high-performance and
ultra-high-performance tire segments, vendors are investing in marketing to
raise their brand awareness. Additionally, they are spending money to improve
the selection of high-performance tires that are offered for online purchase
and to make their products more noticeable on their websites. The key global
players are investing and expanding their market reach in the Saudi Arabia, due
to which the forecast years of high-performance replacement tire market is
expected to generate new opportunity in the coming years. The demand of the
replacement segment is also higher in racing events, like a team uses around
ten to twelve tires in single event, similarly the off-road vehicle in the
Saudi Arabia is also generating new demand for the replacement segment in the
Saudi Arabia high performance tire market.
Increase in the Racing Activities
The increase in the racing events in
Saudi Arabia and the rise in off-road activities is generating new demand for
the high-performance tires, thereby driving the market growth. With the rise in
disposable income in the country, the ease in the adoption of such
high-performance tires has increased. As the racing events are catching up in
Saudi Arabia due to rising inclination of people towards such events, it is
expected to drive the market growth in the country.
Lack of in-house High Performance Tire
Manufacturing Facilities
There are many key global players having
presence in the Saudi Arabia high performance tire market but most of these
players have either dealers, distributors or sales partner and do not have
their own manufacturing in Saudi Arabia. This is leading to slow supply chain
process and high price of the high-performance tires. The government is taking
measures and is in talks with the tire manufacturers to set up in house
manufacturing in Saudi Arabia itself. However, this may take time and this
aspect can be a challenge in the rising demand of the high-performance tires in
the country, during the forecast years.
Sales of high-performance tires in Saudi
Arabia will continue to be driven by the increasing demand for high
performance vehicles for automotive sports and the introduction of new
technologies to enhance tire efficiency.
High performance tires are
distinguished primarily by their higher speed ratings, larger diameters, and
lower aspect ratios because they were originally designed as fitments for
sports cars. However, as their appeal among regular drivers has grown, high
performance tires now have a lot of qualities required to appeal to typical
customers. Today, tires for passenger cars are made for high-speed driving and
have a smooth ride that matches the car's design. Tire manufacturers are
increasingly creating high performance tires that are hybrid, performance-centric,
with extended wear qualities, and year-round drivability to get drivers to pay
an extra for their performance products.