Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 2.21 Billion

CAGR (2023-2028)

5.14%

Fastest Growing Segment

Radial

Largest Market

Gauteng

Market Overview

The South Africa tire market offers a dynamic and evolving landscape within the country's automotive and transportation sectors. This overview provides insights into the key factors that shape the tire market's trends, challenges, and opportunities, influencing the choices of consumers and industries alike. Tires play a critical role in South Africa's diverse economy, supporting industries such as automotive manufacturing, mining, agriculture, logistics, and tourism. As a geographically expansive nation with varying terrains, including urban centers, rugged rural areas, and long-distance highways, the demand for a wide range of tire types and sizes is significant. One of the primary drivers of the South Africa tire market is the country's vibrant automotive industry. With multiple automobile manufacturing plants, South Africa produces various vehicles, including passenger cars, commercial vehicles, and heavy-duty trucks. This manufacturing activity stimulates the demand for original equipment (OE) tires, as well as replacement tires, catering to both domestic consumption and export. Additionally, the mining and agriculture sectors are pivotal in shaping the tire market's landscape. Off-road and specialized tires are essential for heavy machinery used in mining operations and agricultural equipment. These sectors require durable and reliable tires that can withstand harsh terrains and challenging working conditions, leading to a robust demand for heavy-duty and specialized tire categories.

Key Market Drivers

Automotive Industry Growth

The growth of South Africa's automotive industry is a significant driver of the tire market. The country hosts multiple automobile manufacturing plants that produce a wide range of vehicles, including passenger cars, commercial vehicles, and trucks. As these vehicles are assembled and rolled out, they require original equipment (OE) tires that are specifically designed for each vehicle model. The demand for OE tires is closely linked to the expansion and output of the automotive manufacturing sector.

Diverse Industrial Sectors

South Africa's economy is diverse, with industries such as mining, agriculture, logistics, and construction playing crucial roles. Each of these sectors relies heavily on specialized equipment, often equipped with specific types of tires. For example, the mining industry requires heavy-duty off-road tires to withstand rugged terrains, while the agriculture sector depends on agricultural tires that can handle various field conditions. The logistics sector relies on a well-maintained fleet of trucks, driving the demand for commercial vehicle tires.

Varying Terrain and Road Conditions

The diverse geography of South Africa, which includes urban areas, rural regions, and remote terrains, creates a wide range of road conditions. This diversity influences tire choices. Urban areas demand tires optimized for city driving, while rural and off-road applications necessitate tires designed for rugged terrains. The long distances between cities also contribute to high mileage requirements, prompting the need for durable and long-lasting tires.

Tourism and Travel

South Africa's tourism industry is a key driver of the tire market. As a popular travel destination, the country experiences a significant inflow of domestic and international tourists. This generates demand for passenger cars, rental vehicles, and tour buses—all requiring various types of tires. Ensuring safety, comfort, and efficiency in the transportation of tourists drives the demand for quality tires.

Replacement Market

The replacement market is a continuous driver of the tire industry. As vehicles age and their original tires wear out, they require replacement tires. This aftermarket demand is influenced by factors such as tire lifespan, road conditions, driving habits, and seasonal changes. Consumers and businesses turn to tire retailers and service centers for suitable replacement options, stimulating ongoing market activity.

Environmental and Efficiency Concerns

Increasing environmental awareness and government regulations related to fuel efficiency and emissions are impacting tire choices. Consumers are looking for tires that offer improved fuel efficiency and reduced carbon emissions, aligning with sustainability goals. Manufacturers are responding by developing low rolling resistance tires that contribute to better fuel economy.


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Key Market Challenges

Economic Fluctuations and Affordability

Economic volatility can impact consumer purchasing power and influence buying decisions in the tire market. During economic downturns or periods of financial uncertainty, consumers might delay or reconsider their plans to purchase new tires. As tires are essential for vehicle safety and performance, affordability becomes a key challenge, particularly when consumers prioritize immediate financial needs.

Road Infrastructure and Conditions

The quality of road infrastructure in South Africa varies across regions and impacts tire wear and tear. Potholes, uneven surfaces, and poorly maintained roads can lead to increased tire damage and shorter tire lifespans. This challenge necessitates the need for durable and robust tires that can withstand the demands of varying road conditions.

Counterfeit Tires and Quality Concerns

The South Africa tire market faces issues related to counterfeit tires and concerns about tire quality. Counterfeit tires, often sold at lower prices, can compromise safety and performance. Ensuring that consumers have access to genuine, high-quality tires becomes a challenge, as substandard tires can negatively impact vehicle handling, safety, and longevity.

Import Tariffs and Regulations

Import tariffs, taxes, and regulations on tire imports can influence the availability and pricing of tires in the market. These factors can affect the competitiveness of imported tires and potentially lead to fluctuations in tire prices. Import regulations may also impact the variety of tire options available to consumers, limiting their choices.

Environmental Regulations and Sustainability

Increasing environmental awareness has prompted regulations and consumer preferences for more fuel-efficient and eco-friendly tires. Manufacturers and retailers must adapt to these demands by offering tires that meet these standards. Ensuring that tires are compliant with evolving environmental regulations can pose challenges for the industry.

Competitive Landscape and Pricing

The tire market in South Africa is competitive, with numerous brands and manufacturers vying for consumer attention. Intense competition can impact pricing dynamics, potentially leading to price wars or downward pressure on profit margins. Manufacturers and retailers must navigate this competitive landscape while maintaining quality and offering value to consumers.

Consumer Education and Awareness

Educating consumers about the importance of tire maintenance, proper inflation, and regular inspections can be challenging. Many drivers may not be fully aware of how tire condition affects vehicle safety and performance. Ensuring that consumers have access to accurate information and understand the significance of proper tire care is essential for enhancing road safety.

Key Market Trends

Sustainability and Eco-Friendly Tires

A significant trend in the South Africa tire market is the growing emphasis on sustainability and eco-friendly products. Consumers and governments are increasingly concerned about environmental impact, prompting a demand for tires that offer better fuel efficiency and reduced carbon emissions. Manufacturers are responding by developing low rolling resistance tires that contribute to improved fuel economy and align with sustainability goals.

Digitalization and Online Retail

The trend of digitalization is impacting the way consumers research, compare, and purchase tires. Online platforms and e-commerce channels are gaining traction, allowing consumers to access a wide range of tire options, compare prices, read reviews, and make informed choices from the comfort of their homes. This trend enhances convenience and widens access to the market.

Advanced Tire Technology

Tire manufacturers are investing in research and development to introduce advanced tire technologies. Run-flat tires, self-sealing tires, and innovative tread patterns are among the technological advancements being introduced. These technologies enhance safety, performance, and convenience for consumers. Run-flat tires, for example, allow vehicles to continue driving even after a puncture, providing added safety, and minimizing disruptions.

Customization and Personalization

A growing trend in the South Africa tire market is customization and personalization. Consumers are seeking tires that align with their specific needs, preferences, and driving conditions. Tire manufacturers are offering a wider range of tire sizes, tread patterns, and performance characteristics to cater to individual preferences and vehicle requirements.

Winter and All-Season Tires

The trend of seasonal tire usage is gaining traction, particularly in regions with varying weather conditions. Consumers are recognizing the importance of using winter tires for enhanced traction and safety during colder months. All-season tires are also becoming popular, offering a balance between summer and winter performance. This trend is driven by safety concerns and a desire for year-round convenience.

Ride Comfort and Noise Reduction

Consumer preferences are shifting toward tires that offer improved ride comfort and reduced road noise. Tires with innovative designs and materials that minimize vibrations and noise while providing a smooth ride experience are gaining popularity. This trend is particularly relevant for passenger cars and vehicles used for daily commuting.

Segmental Insights

Vehicle Type Insights

Passenger cars hold a significant share in the South Africa tire market, driven by various factors. Firstly, the country boasts a high private vehicle ownership rate, with a large portion of the population relying heavily on cars for their daily commuting needs. This reliance on cars creates a constant demand for tires, as regular usage leads to wear and tear. Furthermore, South Africa's robust second-hand car market plays a crucial role in fuelling the tire demand. As individuals purchase pre-owned vehicles, they often need to replace worn-out tires, contributing to the overall growth of the tire market. In addition to these factors, it is worth noting that South Africa's expanding middle class is exhibiting a growing preference for premium and luxury cars. These high-end vehicles require top-quality tires to ensure optimal performance and safety. As a result, the increasing demand for premium and luxury cars further contributes to the expansion of the tire market in the country.

Tire Construction Type Insights

In the South African tire market, radial tires have emerged as the clear dominators, surpassing bias tires in popularity and demand. This predominant position can be attributed to the host of superior advantages that radial tires offer. Notably, they boast a longer lifespan, ensuring durability and longevity for motorists. Moreover, radial tires excel in terms of fuel efficiency, allowing drivers to save more on their fuel expenses. Additionally, the flexible sidewalls of radial tires enable them to absorb road shocks with remarkable effectiveness, resulting in smoother and more comfortable rides for individuals. Furthermore, the unique construction of radial tires not only enhances tread life but also contributes to reduced fuel consumption, making them an inherently cost-effective option over the long run. With such a comprehensive range of benefits, it's no wonder that radial tires have become the go-to choice for discerning drivers in South Africa and beyond.


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Regional Insights

The Gauteng region in South Africa proudly holds the largest share of the tire market, a position it has achieved due to a combination of key factors. Firstly, Gauteng, known as the economic powerhouse of South Africa, is home to a vast number of vehicles, encompassing both passenger and commercial vehicles. This bustling hub of automotive activity ensures a constant demand for tires. Secondly, Gauteng houses two major cities, Johannesburg, and Pretoria, which boast substantial populations and consequently generate significant tire requirements. The urban landscape of these cities, with their bustling streets and highways, creates an ideal environment for tire sales and distribution. Lastly, the presence of multiple tire manufacturing companies within the region further fuels the market's growth, establishing a thriving ecosystem for the production, distribution, and sales of tires. With these factors in place, the Gauteng region has become an unrivaled force in the tire industry, providing a comprehensive range of options and driving the continued success of tire-related businesses.

Recent Developments

  • In 2023, Magna Tyre group has acquired South Africa dealer network “Tirepoint” to expand their global footprints.
  • In 2022, Goodyear has partnered with Exclusive Wheel and Tyre Distributors for their truck tire business in South Africa.

Key Market Players

·         Bridgestone South Africa Ltd

·         Continental Tires SA Ltd

·         Goodyear South Africa Ltd

·         Sumitomo Rubber South Africa Ltd

·         Michelin Group

·         Pirelli & C. S.p.A.

·         Yokohama Rubber Company Limited

·         Kumho Tire Co. Inc.

 By Vehicle Type

By Demand Category

By Tire Construction Type

By Region

  • Passenger Car
  • LCV
  • M&HCV
  • OTR
  • Two-Wheeler
  • Three-Wheeler
  • OEM
  • Replacement
  • Radial
  • Bias
  • Gauteng
  • Kwazulu-Natal
  • Western Cape
  • Eastern Cape

 

Report Scope:

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

  • South Africa Tire Market, By Vehicle Type:

o   Passenger Car

o   LCV

o   M&HCV

o   OTR

o   Two-Wheeler

o   Three-Wheeler

  • South Africa Tire Market, By Demand Category:

o   OEM

o   Replacement

  • South Africa Tire Market, By Tire Construction Type:

o   Radial

o   Bias

  • South Africa Tire Market, By Region:

o   Gauteng

o   Kwazulu-Natal

o   Western Cape

o   Eastern Cape

Competitive Landscape

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

Available Customizations:

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

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

South Africa Tire Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on South Africa Tire Market Outlook

5.    Voice of Customer

5.1.  Factors Influencing Purchase Decision

5.2.  Brand Awareness

5.3.  Brand Satisfaction Level

6.    South Africa Tire Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Value & Volume

6.2.  Market Share & Forecast

6.2.1.    By Vehicle Type Market Share Analysis (Passenger Car, Light Commercial Vehicle (LCV), Medium & Heavy Commercial Vehicles (M&HCV), Off-the-Road Vehicles (OTR), Two-Wheeler, Three-Wheeler)

6.2.2.    By Demand Category Market Share Analysis (OEM Vs. Replacement)

6.2.3.    By Tire Construction Type Market Share Analysis (Radial Vs Bias)

6.2.4.    By Regional Market Share Analysis

6.2.4.1.        Gauteng Market Share Analysis

6.2.4.2.        Kwazulu-Natal Market Share Analysis

6.2.4.3.        Western Cape Market Share Analysis

6.2.4.4.        Eastern Cape Market Share Analysis

6.2.5.    By Company Market Share Analysis (Top 5 Companies, Others – By Value, 2022)

6.3.  South Africa Tire Market Mapping & Opportunity Assessment

6.3.1.    By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2.    By Demand Category Market Mapping & Opportunity Assessment

6.3.3.    By Tire Construction Type Market Mapping & Opportunity Assessment

6.3.4.    By Regional Market Mapping & Opportunity Assessment

7.    South Africa Passenger Car Tire Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Value & Volume

7.2.  Market Share & Forecast

7.2.1.    By Demand Category Market Share Analysis

7.2.2.    By Tire Construction Type Market Share Analysis

8.    South Africa Light Commercial Vehicle Tire Market Outlook

8.1.  Market Size & Forecast

8.1.1.