Mexico Tyre Market Overview, 2029

The Mexico tire market is a vital component of the country's expanding automotive landscape, characterized by a robust growth trajectory and evolving consumer demands. The rising middle class and improved purchasing power have led to a surge in vehicle ownership, thereby driving demand for various types of tires. Historically, the Mexican tire market has evolved significantly since the late 20th century, transitioning from a focus on basic tire production to advanced manufacturing techniques that emphasize performance and sustainability. The market has witnessed a notable shift towards high-performance and off-road tires, reflecting changing consumer preferences for vehicles capable of handling diverse terrains. This trend is evident as more consumers engage in recreational activities that require durable and high-traction tires, particularly for SUVs and trucks. The COVID-19 pandemic posed significant challenges to the tire market, causing temporary disruptions in production and sales due to lockdowns and economic uncertainties. However, as recovery ensued, pent-up demand and government stimulus measures revitalized the market. Key players such as Bridgestone, Michelin, Continental AG, and Pirelli have been instrumental in driving innovation within the sector, focusing on developing eco-friendly tires and enhancing product offerings to meet consumer expectations for safety and performance.

According to the research report "Mexico Tyre Market Overview, 2029," published by Bonafide Research, the Mexico Tyre market is expected to reach a market size of more than USD 9 Billion by 2029. Mexico's tire market is poised for significant growth in the coming years, driven by a combination of factors such as rising vehicle ownership, expanding tire production capacity, and increasing investments by major tire manufacturers. One of the key drivers of Mexico's tire market is the presence of major international tire companies like Bridgestone, Continental AG, Cooper Tire & Rubber Co., Pirelli, and JK Tornel. These companies have established manufacturing facilities in Mexico, with a total of nine production plants, to cater to the growing domestic demand as well as the demand from Latin America and the United States. The increasing investments by these companies to expand their production capacity in Mexico further underscore the market's growth potential. Another significant factor contributing to the tire market's expansion is the rising purchasing power and private vehicle ownership in Mexico. Over the past decade, car ownership in the country has increased by 5.4%, indicating a considerable scope for growth in the demand for automobiles, including private vehicles and passenger cars. As the number of vehicles on Mexican roads continues to rise, the demand for tires will also increase, fueling the overall market growth.

The passenger car tire segment accounts for the largest share of the Mexico tire market. This segment has seen steady growth driven by rising vehicle ownership and a growing middle class with higher disposable incomes. Radial tires dominate this segment due to their lower rolling resistance and greater fuel efficiency. Manufacturers are focusing on developing tires with improved handling, braking performance, and comfort to cater to the evolving preferences of Mexican consumers. The light commercial vehicle (LCV) tire segment is also a significant contributor to the Mexico tire market. LCVs are widely used for last-mile delivery and small-scale transportation needs. The growth of e-commerce and the expansion of urban areas have increased the demand for LCVs, driving the need for tires designed for these vehicles. Manufacturers are offering tires with enhanced durability, load-carrying capacity, and fuel efficiency to meet the specific requirements of the LCV segment. The medium and heavy commercial vehicle (M&HCV) tire segment is expected to witness substantial growth in the coming years. This segment includes trucks, buses, and off-road vehicles used in construction and mining. The surge in infrastructure development projects and the growth of the mining industry have increased the demand for M&HCVs, which in turn drives the need for tires optimized for these vehicles. The two-wheeler and three-wheeler tire segment accounts for a smaller share of the Mexico tire market compared to passenger cars and commercial vehicles. However, this segment is expected to grow steadily due to the popularity of motorcycles and scooters for urban commuting. Manufacturers are offering tires with improved grip, handling, and durability to meet the needs of two-wheeler and three-wheeler users.

Radial tires have become the dominant design type in the Mexico tire market, accounting for a significant share due to their superior performance characteristics. The construction of radial tires features cord plies arranged at 90 degrees to the direction of travel, allowing for a flexible sidewall and a stiffer tread area. This design results in lower rolling resistance, which translates to better fuel efficiency—a crucial factor given the volatile fuel prices in Mexico. Additionally, radial tires offer enhanced durability and puncture resistance, making them particularly suitable for heavy commercial vehicles. The demand for radial tires in Mexico is driven by increasing vehicle ownership, particularly among passenger cars and light commercial vehicles. As consumers become more conscious of fuel efficiency and safety, manufacturers are responding with innovations such as improved tread designs for better traction and handling. For instance, companies like Bridgestone and Continental AG are investing in research and development to create high-performance radial tires that meet both consumer expectations and regulatory standards. Bias ply tires, on the other hand, are constructed with layers of fabric plies laid diagonally at angles, typically around 45 degrees to the centerline of the tread. This design provides a thicker sidewall, which enhances resistance to cuts and punctures, making bias ply tires particularly advantageous for off-road applications or vehicles requiring robust performance under challenging conditions. Historically, bias ply tires were favored for their durability at low speeds and their capability to perform well in rugged terrains.

The OEM segment holds a significant share of the Mexico tire market due to the increasing automotive production in the country. Several leading automobile brands, such as Ford, Chrysler, GM, Volkswagen, Toyota, and others, have established production plants in Mexico to meet the growing demand for passenger vehicles. These automakers work closely with tire manufacturers to select tires that meet their specific performance requirements, balancing factors like ride quality, handling, fuel efficiency, and longevity. The OEM segment is primarily served through direct sales channels between tire manufacturers and vehicle producers. The replacement segment is also growing at a high rate in the Mexico tire market, driven by increasing private vehicle ownership and the need for periodic tire maintenance and replacement to ensure maximum safety. As vehicles age and tires wear out, there is a continuous demand for replacement tires. The replacement segment is primarily served through a network of offline retail and specialty stores that sell a wide range of tires and have partnerships with various brands as trusted dealers. However, the online distribution channel for replacement tires is also gaining traction, with the COVID-19 pandemic accelerating the growth of online tire sales in Mexico.

COVID-19 Impact
The Covid-19 pandemic affected almost every industry vertical across the globe and the tire market in the region of North America was no exception. The enforcement of lockdowns along with the travel restrictions across countries significantly affect the tire market. The situation of lockdowns caused production in the automobile industry to stop which affected the demand from the OEM sector. On the other hand the market was also observing decline from the replacement sector during the pandemic as the requirement for new tires declined.

Key Players
Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, 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

Considered in the report
• Geography: Mexico
• Base Year: 2023
• Historical year: 2018
• Forecasted Year: 2029

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.

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