Saudi Arabian tyre sales are forecast to surge over US$10 billion by 2014, according to TechSci Research. The tyre sales have three major components: OEM, replacement and exports, including re-exports. The used car market was valued at more than US$800 million in 2010, which is the major replacement market boost factor. There has been a considerable increase in the assembly of truck tyre plants in the nation, which is the only factor catering to OEMs.
Saudi Arabia’s tyre market is one of the largest in terms of both value and volume in the region with over 60 international brands already present in the market.
With a GDP (per capita) of more than US$26,000 in 2011 and a rapidly growing population, Saudi Arabia’s tyre market is visibly one of the fastest growing in the Arab nations. Strong developments in roughly all the major automotive segments have infused a huge tyre demand in the country.
A separate study by Research and Markets projected that demand for tyres and tubes is set to grow by 12% annually. Being the largest market in the Middle East, Saudi Arabia still imports to satiate its needs. It runs up almost US$800 million in imported tyre bills alone on a yearly basis, importing 13 million tyres/year and volumes are expected to keep on rising as consumer demand increases over the next few years.
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