South America Tyre Market Outlook, 2029

The South American tyre market is a rapidly developing market. As the economies in the region are rapidly growing and infrastructure development is taking place throughout the region; the South American tyre market finds itself on a suitable pedestal to grow upon. In order to assess and study the regional trends and patterns in the South American tyre market, the research has been approached by looking at the market through appropriate segments and classifications. Automotive tire is the circular vehicle component made of rubber used to cover the wheel’s rim externally. The major function of the tire is to protect the wheel rim and offer tractive force between the road surface and the vehicle. Since it is manufactured from rubber, it also provides a flexible cushion, thereby reducing the impact of the vibrations and absorbs the shock of the vehicle. Rubber tire consists of tread, jointless cap piles, beads, and other materials, which include synthetic rubber, carbon black, and fabric. In order to have a broader understanding of the landscape of tyre market in South America, further segmentation has been made on the basis of countries, and the sales channels through which the products are made available to the distributors and customers. The South American market is majorly driven by Brazil contributing about 1/2 of the overall regional tyre market. Argentina and Colombia are the 2nd and 3rd biggest tyre markets in the region whereas the Rest of the South American region contributes close to 1/4th of the total tire market in 2023. As the region is exposed to economic vulnerabilities caused to global commodity price fluctuations, the region as some systematic issues that need strong policy support. According to the research report, "South America Tyre Market Outlook, 2029," published by Bonafide Research, the South America Tyre market is projected to add more than USD 6 Billion from 2024 to 2029. Factors such as increase in automotive production & sales across different vehicles segment, rise in competition among tire manufacturers and introduction of advanced technology in the manufacturing process are driving the market growth. However, volatile prices of raw materials and development in the market of retreading tires hinder the market growth. Furthermore, advancement in technology and fuel efficiency and safety concerns is expected to offer lucrative opportunities for the market growth. Recently, the automobile industry has been experiencing rapid growth owing to speedy industrialization, which has led to an increase in the sale of commercial vehicles such as trucks, tractors, and trailers. In addition, rise in disposable income of people and improvements in standard of living are the factors that increase the sale of luxurious passenger cars and premium segment bikes. Furthermore, electric vehicle sales are expected to increase during the forecast period. Also, decrease in prices of electric vehicle parts such as battery, transmission, and alternators propel the sale of electric vehicles. Thus, increase in the demand for vehicles across all segments among consumers leads to a rise in the production of automobiles and tires associated with it. Moreover, consolidation of the automotive sector that results in mergers and acquisitions among international and domestic vehicles manufacturers boost the growth of the automotive sector influencing the automotive tire market. Therefore, growth of the automobile sector is expected to increase the overall demand for tires.

The South American tyre market is diverse, reflecting the region's varying transportation needs and economic conditions. Key segments include passenger cars, light and heavy commercial vehicles, two-wheelers, and three-wheelers. Passenger Car Tyres dominate the market due to the growing middle class and urbanization. Increasing disposable incomes have led to a surge in car ownership, prompting demand for high-performance and eco-friendly tyres. Innovations in tread design and materials, aimed at enhancing fuel efficiency and safety, are significant trends. Light Commercial Vehicle (LCV) Tyres are witnessing growth driven by e-commerce and logistics expansion. The rise in last-mile delivery services in urban areas has escalated the need for durable, cost-effective tyres. Manufacturers are focusing on producing tyres that offer better load capacity and fuel efficiency, catering to the increasing number of small businesses and delivery services. Heavy Commercial Vehicle (HCV) Tyres play a crucial role in the transport of goods across South America’s extensive road networks. The demand for these tyres is propelled by infrastructure projects and trade growth within the region. Companies are investing in advanced technologies, such as retreading and sustainable materials, to enhance the lifespan and performance of HCV tyres. The two-wheeler segment is particularly significant in countries like Brazil and India, where motorcycles are a popular mode of transport due to affordability and fuel efficiency. The demand for high-quality, versatile tyres is rising, with manufacturers focusing on safety and durability. Three-wheelers and other vehicles serve niche markets, especially in urban and rural areas. Their affordability and practicality drive demand, particularly in developing regions. The two predominant design types in the market are radial and bias ply tyres, each serving distinct needs and applications across the region. Understanding the innovations and demand trends associated with these tyre types can provide insights into the future of the South American tyre industry. Radial tyres, characterized by their steel-belted construction with cords arranged at a 90-degree angle to the direction of travel, are increasingly favored in South America. Their design provides several advantages: improved fuel efficiency, enhanced handling, better traction, and increased durability. These qualities make radial tyres particularly suitable for passenger cars and light commercial vehicles, where performance and safety are paramount. Manufacturers in South America are investing heavily in the development of radial tyre technology. Recent innovations include the use of advanced rubber compounds that enhance grip and reduce rolling resistance. Bias ply tyres, on the other hand, feature a design where the cords are laid at angles, creating a crisscross pattern. This structure provides a more flexible sidewall, which can be advantageous in certain applications, such as agricultural and off-road vehicles. Bias ply tyres are often considered more durable in rugged terrains, making them suitable for rural areas and heavy-duty applications. The demand for bias ply tyres in South America is particularly robust in rural and agricultural sectors, where their durability and ability to navigate challenging terrains are essential. In countries with vast agricultural landscapes, such as Brazil and Argentina, bias ply tyres are commonly used in tractors and other farming equipment. OEM Tyres are supplied directly to vehicle manufacturers for new cars and commercial vehicles. This segment is driven by the automotive industry's growth, with manufacturers forging partnerships with tyre producers to ensure quality and performance. Distribution channels for OEM tyres typically involve direct sales to automotive manufacturers, often through established contracts. These tyres are designed to meet specific performance standards set by the vehicle makers, emphasizing durability, safety, and efficiency. Replacement Tyres, on the other hand, cater to consumers who need new tyres for their vehicles after the original ones have worn out. This segment encompasses a wide range of consumers, from individual car owners to fleet operators. The distribution channels for replacement tyres are more varied and include retail tyre shops, online platforms, and automotive service centers. Many consumers in South America prefer local tyre dealers for personalized service and immediate availability, while the rise of e-commerce is enabling online purchases, offering convenience and often competitive pricing. Additionally, large retailers and automotive chains are expanding their footprint, further enhancing the accessibility of replacement tyres. As the market evolves, both segments are increasingly emphasizing sustainable practices and innovative technologies to meet consumer demands for safety and environmental responsibility.

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Manmayi Raval

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Brazil is leading the South American tyre market due to several key factors that position it as a robust hub for both production and consumption. As the largest economy in the region, Brazil boasts a diverse automotive industry, with significant demand for both passenger and commercial vehicles. This high vehicle ownership rate drives the need for tyres, both from OEMs and the replacement segment. Additionally, Brazil’s extensive agricultural and industrial sectors require durable tyres for heavy machinery and commercial vehicles, further boosting demand. The country also benefits from a well-established network of tyre manufacturers, including both local and multinational companies, which enhances competition and innovation in the market. Moreover, Brazil's strategic location facilitates efficient distribution across South America, making it a central point for tyre exports to neighboring countries. With increasing investments in infrastructure and sustainability initiatives, Brazil is poised to continue its leadership in the tyre market, adapting to evolving consumer preferences and regulatory demands. COVID-19 Impact The pandemic affected the tire market in the region quite enormously. The countries in the region were under strict travel restriction along with time-to-time lockdowns. This lead to the decrease consumption as well as less replacement needs for the tires in automotive sector. This decrease in demands affected the market quite heavily. Along with this the demand for new vehicles decreased in the region due to the inconsistent economic condition created by the spread of the Virus. Key Players: Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, Nexen Tire Corp, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

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Considered in the report • Geography: South America • Base Year: 2023 • Historical year: 2018 • Forecasted Year: 2029 Countries covered • Brazil • Argentina • Colombia • Rest of the South America Aspects covered in the report • Market Size by Value (2018-2029F) • Market Size by Volume (2018-2029F) • Market Share by Vehicle Type • Market Share by End Use • Market Share by Design • Market Share by Sales Channel • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.