Published on : Jan 09, 2014
The tyre market in Saudi Arabia is all set to expand and grow at the CAGR of 12% between the years 2013-2018. This growth is due to the constantly increasing demands in the automotive sales which are coupled with certain growing demands in the brand new tyres and the tyre replacement markets. This statistic was reported by TechSci Research - Saudi Arabia Automobile Tyre Market Forecast and opportunity, 2018.
According to TechSci Research’s recently published report, the majority of the contributors in the country’s tyre sales market are from the passenger vehicle segment. Due to the increasing investments in varied sectors such as oil & gas, building & construction, and travel & tourism the country is set to witness a large scale increase in the demand for commercial vehicle tyres.
In addition, to the growing automotive market in Saudi various construction projects such as Jazan Economic City (JEC), King Abdullah Economic City (KAEC), and more, have been the major key drivers of heavy duty trucks in the country.
Furthermore, speaking of domestic tyre production capabilities, Saudi Arabia is taking great efforts and measures to develop the domestic tyre production sector in the country. One of the best illustrations under this subject is the National Industrial Clusters Development Program (NICDP). It is one of the key projects in developing the domestic production of Saudi Arabia’s automotive sector.
NICDP’s main aim is to support the supply chain including the synthetic rubber and production of carbon black (for tyres). It is augured that by the year 2020, Saudi Arabia would approximately reach a production target of 10 million tyres per year for the domestic market and for exports.
The ever increasing demand of commercial and passenger vehicles has created great opportunities for foreign manufacturers to make their way into Saudi Arabia’s tyre market. It is due to the hot climatic conditions the tyres in vehicles need often replacements, and thus, this type of short replacement cycles continues to account for high replacement demand in the country.
Additionally, young population and their increasing preferences for use of small cars will contribute to the growth of the tyre market in the forthcoming years, said Mr. Karan Chechi, Research Director with TechSci Research in a research based global management consulting firm.
The Saudi Arabia Tyre Market Forecast and Opportunities 2018 is here to help the customers make sound decisions regarding investment evaluation and provide them with cutting-edge market intelligence. The report analyzes and identifies the developing trends along with necessary challenges, drivers, and opportunities that are available in the tyre industry.