2 Middle East & Africa Tire Market - Messe Frankfurt

2 Middle East & Africa Tire Market

3Middle East & Africa Tire Market

1. Middle East Tire Industry Outlook

2. Middle East Tire Market By Vehicle Type

Passenger Car Tires (Million Units) 2019

Commercial Vehicle Tires (Million Units) 2019

3. Drivers & Challenges (Middle East Tire Industry)

4. Overview of Middle East Vehicle Fleet Analysis

Passenger Car Vehicle Fleet 2019

Commercial Vehicle Fleet 2019

5. Major Tire Competitors in Middle East Tire Market

6. Market Trends And Developments (Middle East)

7. Tire Market Future Opportunities (Middle East)

8. Middle East Tire Replacement Scenario

9. Africa Tire Industry Outlook

10. Africa Tire Industry

Passenger Car Tires (Million Units) 2019

Commercial Vehicle Tires (Million Units) 2019

11. Drivers & Challenges (Africa Tire Industry)

12. Overview of Africa Vehicle Fleet Analysis



13. Major Tire Competitors in Africa Tire Market

14. Market Trends And Developments (Africa)

15. Tire Market Future Opportunities (Africa)

16. Africa Tire Replacement Scenario

CONTENT


Middle East Tire Industry

Outlook


Middle East Tire market is forecast to grow at a CAGR of around 5.04%, in volume terms, during 2020-2025, with sales volume projected to reach 62.51 million units by 2025.

Passenger Car Tires (Million Units)

Commercial Vehicle Tires (Million Units)

Share by Vehicle Type (2019)


37.41

11.47

25.50%

19.33%

48.58

14.06

74.50%

41.69% 38.98%

2020

2020

Light Commercial Vehicles (LCV)

Hatchback Sedan

CAGR 2020-2025F – 5.31%

CAGR 2020-2025F – 4.15%

2025

2025

Medium & HeavyCommercial Vehicles

(M&HCV)

SUV


Middle East Tire Market By Vehicle Type

Commercial Vehicle Tire Market

Share, By Volume, 2019

Passenger Car Tire Market Share,

By Volume, 2019


Drivers

• RisingConstructionindustry

• GrowingLogisticand

e-commerce

• IncreasingAutomobileSales

• Immigration

Challenges• HeavilyDependentonImports

Drivers & Challenges (Middle East Tire

Industry)


Overview of Middle East

Vehicle Fleet Analysis



Others Contains : Bahrain, Palestine, Syria, Yemen

6.03

2.57

0.86

16.91

1.81

3.65

1.94

1.05

1.03

5.9

2.51

0.65

0.36

1.70

0.42

0.41

0.36

0.16

0.30

2.97

Saudi Arabia

UAE

Qatar

Iran

Iraq

Israel

Kuwait

Jordan

Oman

Others


Middle East Passenger Car (PC) andCommercial Vehicle (CV) Fleet Analysis,

By Country, 2019 (Million Units)


Major Tire Competitors in Middle East Tire Market

Major Players in Middle East Tire Market

• BridgestoneMiddleEast&Africa• GoodyearMiddleEastFZE• Michelin• HankookTire• SumitomoCorporation• Pirelli

AspertheWorldBank,GDPgrowthrateinMiddleEaststoodataround0.6% in 2019 and is expected to reach 2.6% in 2020.


Market Trends And Developments (Middle East)

InSaudiArabia,factorssuchasliftingofban on female drivers have increased the total number of female drivers in the country. In2020, thenumberof femaledrivers is expected to reach 3 million, whereas the number of male drivers is expected to touch 9.5 million, which will result in the growth of the automotivesector in the country.

SsangYong Motor, which is owned by Mahindra & Mahindra, inked a licensing agreementwithSaudiNationalAutomo-bile Company (SNAM) in October 2019. The agreement allows SNAM to assem-ble 30,000 “Rexton Sports” and “Sports Kahn” SUVs annually at Jubail industri-al complex in the eastern region of the country from 2021. The G4 Rexton, Ko-rando and Tivoli models are presently be-ing exported from South Korea to Saudi Arabia by SsangYong Motor.

Apollo Tyres signed a partnership with Al–JomiahtoentertheSaudiArabiatiremarket in December 2019. The compa-nywillbetargetingtruck,busandpas-senger car tire market. The companyaims to sell 800,000 tires annually inthenextfiveyears.


Tire Market Future Opportunities

(Middle East) Sales of commercial vehicles are going to boost in Qatar as big infrastructure projects such as stadiums, roads and expressways are being undertakenfortheupcomingFIFAWorldCup2022.

In2022,thefirstelectriccarnamed(Katara)isgoing to be rolled down in the assembly line. The project is backed up by a new venture from Qatar Quality Trading Company and Ja-pan based ARM Co., Ltd. (one of the leading global car manufacturers). Katara will be avail-ablein10differentmodels.

Barez,aleadingIranbasedtiremanufacturingcompany,aimstohaveanannualproductioncapacityof10milliontiresby2021.Thecom-panyalsoplanstoexport25%ofitstotaltireproductionby2025.

NationalTireCompany(NTC)isgoingtocom-menceproductioninSaudiArabiabytheendof2020.Theplanthasaproductioncapacityof20 million units annually. The plant will have a workforce of around 4,000 employees.

Karwa Motors is the joint venture between MowasalatandOmanInvestmentFund.Part-ners are going to invest USD 70 million to pro-ducebusesinDuqmplant.Theproductionofbuses will start by the second half of 2020 with anannualproductioncapacityof1,000buses.


Middle East Tire Replacement Scenario

MiddleEastTireReplacementScenarioByVehicleType


Africa Tire Industry Outlook


AfricatiremarketisforecasttogrowataCAGRof3.43%,invol-ume terms, during 2020-2025, with sales volume projected to reach 60.43 million units by 2025.

Passenger Car Tires (Million Units)

Commercial Vehicle Tires (Million Units)



30.65

20.41

77.60%

29.12%

37.19

23.25

22.50%

32.33% 38.55%

2020

2020

Hatchback Sedan

CAGR 2020-2025F – 3.94%

CAGR 2020-2025F – 2.64%

2025

2025

SUV

Light Commercial Vehicles (LCV)

Medium & HeavyCommercial Vehicles

(M&HCV)


Africa Tire Industry

Passenger Car Tire Market Share, By Volume, 2019

Commercial Vehicle Tire Market Share, By Volume, 2019


Drivers

• InfrastructureDevelopment

• IncreasingPurchasingPowerandGDP

Per Capita

• ExpandingDistributorandDealer

Network

• RisingDemandforChineseTiresand

Growing Used Car Market

• GrowthinMotorcycleTaxiMarket

Challenges• MorethanHalfoftheMarketis ImportDriven

Drivers & Challenges (Africa Tire Industry)


Overview of Africa Vehicle Fleet Analysis



7.82

4.12

3.16

4.97

3

0.24

0.85

0.75

0.83

6.78

3.9

1.89

1.07

1.50

0.80

0.14

0.55

0.14

0.11

4.77

South Africa

Algeria

Morocco

Egypt

Nigeria

Tanzania

Kenya

Angola

Zimbabwe

Others


Africa Passenger Car (PC) and Commercial Vehicle (CV) Fleet Analysis,

By Country, 2019 (Million Units)


Major Tire Competitors in Africa Tire Market

MajorPlayersinAfricaTireIndustry

• BridgestoneSouthAfrica(Pty)Ltd.• ContinentalTireSA(Pty)Ltd• GoodyearSouthAfrica(Pty)Ltd• Michelin• InfinityTires

AspertheWorldBank,GDPgrowthrateofAfricawasaround3.4%in2019 and is expected to stand at 3.9% in 2020.


Market Trends And Developments (Africa)

Firestone, a subsidiary brand of Bridge-stone, is going to engage in partnerships with agriculture co-operatives acrossSouth Africa. As a part of these partner-ship agreements, Firestone plans to deliv-ertiresforcommercialvehiclesandOTR(Off-The-Road)vehicles,majorlytractors.

Bridgestone, a leading global tire play-er,haslongtermtiresupplyagreementswith BMW. Bridgestone South Africa isnow thedomesticpartner formanufac-turing19-inchtiresforBMWX3,whichisassembled in South Africa.

In Africa, Nissan plans to increase itspresence, as a part of the company’s Nis-san MOVE to 2022 Midterm plan. The production of the plant near Algeria’swestern city Oran, in partnership with Hasnaoui Group, is going to start in the firsthalfof2020,withanannualcapacityof 63,500 vehicles.


Tire Market Future Opportunities

(Africa)GreenDistillationTechnologies,anAustraliantire recycler, is now thefirst company in theworld which has developed the technology to turnoldtires intooil, carbonand steel.GDThas signed an agreement worth USD 50 million withVolcoPowerPtyLtdtobuild5tirerecy-cling plants in South Africa.

Kenya’sgovernmentisprioritizingtoproducecommercial vehicles (Buses,Trucks,etc.)andplanstotakeinitiativestoencourageproduc-tion of passenger vehicles (passenger cars,SUVs, station wagons and motorcycles). Thecountry’s government has announced plans to provideincentivesasperthevehicletypesbe-ing manufacture.


Africa Tire Replacement Scenario

AfricaTireReplacementScenarioByVehicleType




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2 Middle East & Africa Tire Market - Messe Frankfurt