According to TechSci Research report “Azerbaijan Tyre Market Forecast & Opportunities, 2020”, the country’s tyre market is projected to grow at a CAGR of over five percent during 2015 – 2020.
In 2014, passenger car segment dominated Azerbaijan tyre market, followed by medium & heavy commercial vehicle segment. Azerbaijan tyre market is solely dependent on replacement demand, due to absence of any OEM manufacturing facility in the country. Furthermore, due to lack of rubber production in the country, there are no tyre production facilities in Azerbaijan, and consequently, majority of the overall demand for tyres in the country is addressed through imports.
“Increasing diversification into non-oil sectors and rising number of infrastructural projects in the country such as development of the Khazar Island is anticipated to boost demand for OTR and medium and heavy commercial vehicles in the coming years. Robust growth in the country’s tourism sector is also anticipated to pump growth in demand for LCVs in the country for public transportation, thereby driving growth in Azerbaijan tyre market through 2020.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.