Increasing tyre demand from OEMs and strong consumer sentiment to drive Argentina's tyre market
June 29, 2014 (Newswire) - According to "Argentina Tyre Market Forecast & Opportunities, 2019", a recently published comprehensive market report on tyre industry in Argentina, the country's tyre market is forecast to grow at a CAGR of around 10%during 2014-19. Low motorization rate coupled with rising disposable income and growing SME sector is augmenting the penetration of automobiles in Argentina, which consequently promises a bright future for the country's tyre market. Though, the growth trajectory of 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, the passenger car sales witnessed a bounce back in 2013 with a robust double digit growth, thereby boosting the country's tyre market.
"With the largest share in the country's automobile fleet, the passenger car tyre segment continues to dominate the tyre market in Argentina. 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. More than half of automobiles produced in the country were exported in 2013. This increasing automotive production is eventually contributing to the demand for tyres in the OEM sector of the country", said Mr. Karan Chechi, Research Director with TechSci Research a research based global management consulting firm.
Presently, around 10 major international automobiles producers namely Ford, General Motors, Iveco, Mercedes Benz, Peugeot-Citroen, Renault, Toyota, Volkswagen, Fiat and Honda are operating in Argentina's automotive market. In terms of regional demand share, Pampas, Dry Pampas and Pampas Sierras regions account for over 60% of the country's tyre demand.
"Argentina Tyre Market Forecast & Opportunities, 2019" has evaluated the future growth potential of the Argentina tyre industry and provides statistics and information on market structure, exports and future growth of the country's tyre industry. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides all this, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the Argentinian tyre industry.