Argentina’s tyre market is forecast to grow about 10 percent annually through 2019, according to TechSci Research.
In the “Argentina Tire Market Forecast & Opportunities, 2019” market report, the research firm said a low motorization rate coupled with rising disposable income and growing small- and medium-sized business sector is augmenting the penetration of automobiles in Argentina, which consequently promises a “bright future” for the country’s tyre market.
TechSci did not disclose actual tyre shipment data to back up its forecast, but did say the passenger tyre segment dominates shipments.
“Moreover, due to Argentina’s geographical advantage, low manufacturing cost, and availability of cheap and skilled labor, many leading global automobile manufacturers are setting up their manufacturing units in the country and exporting automobiles to the neighboring countries,” said Karan Chechi, research director, thus creating demand growth for OE tyres.
Though the growth trajectory of the Argentina tyre market—particularly passenger car segment—was hit by adverse internal economic conditions in 2012, which consequently affected the demand for tyres in the country, passenger car sales witnessed a bounce back in 2013.
The sector saw “robust” double digit growth, thereby boosting the country’s tyre market, according to TechSci, which said the country’s growth rate for tyres from 2009-13 was 14 percent annually.
Presently, around 10 major international automobile producers—namely Ford Motor Co., General Motors Co., Iveco S.p.A., Mercedes-Benz A.G., Peugeot-Citroen S.A., Renault S.A., Toyota Motor Co. Ltd., Volkswagen A.G., Fiat S.p.A. and Honda Motor Co. Ltd.—are operating in Argentina’s automotive market. In terms of regional demand share, the Pampas, Dry Pampas and Pampas Sierras regions account for over 60 percent of the country’s tyre demand.
From a tyre supply point of view, Argentina has three manufacturers, Bridgestone Argentina S.a.i.c.; Fate S.a.i.c.i.; and Pirelli Neumaticos S.a.i.c. Continental A.G., Goodyear and Michelin Group are present through sales companies.
Burnaby-based TechSci Research is a global market research and consulting company with offices in Canada, England and India. The report is available at prices ranging from $1,800 for single-user/electronic access to $4,500 for muli-user license/electronic access.