Technavio has published a new report on the passenger car tire market in Australia.
The market is expected to grow at a CAGR of more than 2% from 2015-2019.
According to the latest report by Technavio, the need for replacement of old and damaged tires is having a positive impact on domestic tire market. In 2014, Australia, being an advanced economy, had sales of 532 thousand passenger cars, which would now be the new customers for the replacement tire market.
“It is projected that the passenger car market in Australia will experience a decline at a CAGR of almost 0.35% during the forecast period. However, the on-road passenger cars are expected to grow at a CAGR of over 2%, which would thus support the growth of the replacement tire segment,” says Faisal Ghaus, Vice President of Technavio.
The new report by Technavio also emphasizes self-sealing tires or run-flat tires, developed by Continental Tires, which are designed to fix punctures instantly and permanently.
“The self-sealing tires that eliminate the need for a spare tire or tire-changing equipment on board a car are expected to be a major trend and drive market growth in the forecast period,” adds Ghaus.