Argentina Tire Market
Argentina Tire Market Size Set to Touch USD 6.96 Billion by 2029
Published | 20 November 2023
Argentina tire market is flourishing because of the increasing private vehicle ownership and vehicle production and expanding automobile industry in the country.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Argentina tire market size at USD 4.61 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Argentina tire market size to grow at a significant CAGR of 7.13% reaching a value of USD 6.96 billion by 2029. Major growth drivers for the Argentina tire market include an growing automobile industry, rising automotive production, economic expansion, and a growing need for high-quality tires in the region. A substantial portion of this market's growth is linked to Brazil, the world's largest importer of cars and auto parts, including tires. Argentina's tire market expansion is further bolstered by its low production costs, a skilled and affordable labor force, and the presence of numerous industry players. Global companies are also keen on expanding their presence in Argentina, expanding their dealer and distributor networks. Over the next five years, the tire market in Argentina will continue to thrive, driven by the industry's growth and increasing demand for passenger cars and commercial vehicles. Brazil's significant role as a tire importer from Argentina also contributes to this market's expansion, along with factors like cost-effective production, a skilled workforce, and the presence of multiple market participants. Hence, such aspects are expected to boost the expansion of the Argentina tire market during the forecast period. However, high cost of living and competition from foreign tire manufacturers are anticipated to restrain the overall market growth during the period in analysis.
Argentina Tire Market – Overview
The Argentina tire market refers to the industry and market sector in Argentina that deals with the manufacturing, distribution, sale, and servicing of tires for various types of vehicles, including passenger cars and commercial vehicles. This market is characterized by growing demand, driven by factors such as increased automotive production, economic growth, and a need for high-quality tires in the region. It also involves the import and export of tires, both to and from countries like Brazil, which plays a significant role in this market due to its status as the world's largest importer of cars and auto parts, including tires. The Argentina tire market is supported by cost-effective production, a skilled labor force, and the presence of numerous industry players.
Impact of COVID-19 on Argentina Tire Market
COVID-19 pandemic adversely affected the Argentina tire market. Lockdowns, supply chain interruptions, and reduced consumer spending led to a temporary decline in tire demand. Vehicle production and sales were severely affected, resulting in decreased OEM and replacement tire sales. The automotive industry struggled with production halts and reduced capacity. However, the market displayed resilience, adapting to the "new normal" with a focus on safety and sustainability. As economic activities gradually resumed, there was a rebound in tire sales, especially for passenger cars and commercial vehicles. The pandemic underscored the importance of robust supply chains and the need for adaptable market strategies.
Prolonging Wars and Escalating Geopolitical Tensions in Oil Rich Regions
The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war.
Also, the war in Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, The World Bank anticipates that the crude oil prices would spike to a range of USD 140–157 a barrel in the long term, if the war continues to escalate and spreads to other regions. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Argentina tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.
Argentina Tire Market – By Tire Type
Based on tire type, the Argentina tire market is bifurcated into Radial and Bias segments. The radial segment is expected to hold a higher share in the Argentina tire market during the forecast period by tire type. This trend is driven by multiple factors, including automakers' increasing preference for radial tires due to their advantages in fuel efficiency and durability compared to bias-ply tires. Notably, the market witnesses growing demand for eco-friendly and fuel-efficient "green tires" that emit fewer greenhouse gases. The rising sales of commercial vehicles, higher replacement rates, and the growing focus on sustainability further fuel the demand for radial tires. The competitive market for electric vehicle tires fosters innovation and a variety of product options. Also, online sales, catalyzed by the COVID-19 pandemic, offer consumers a wider range of tire brands, competitive pricing, and convenience.
Major players operating in the Argentina tire market include FATE S.A.I.C.I, Pirelli Neumaticos S.A.I.C, Michelin Argentina Co. Ltd., Bridgestone Argentina S.A.I.C., Neumaticos Goodyear SRL, Rodaco Argentina S.A., and Hankook. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Argentina Tire Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Argentina Tire Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Argentina Tire Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicle (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Two-Wheelers, Three-Wheelers, Off-The-Road (OTR) Vehicles); By Tire Type (Radial, Bias); By Demand Category (OEM, Replacement), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: November 2023
An increasing vehicle production and expanding automobile industry are projected to propel the expansion of the Argentina tire market during the forecast period between 2023 and 2029.
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