South Africa Tire Market, By By Type (Radial, Bias), By Size (10’’-12’’, 13’’-15’’, 16’’-18’’, 19’’-21’’, >21’’), By End Use (OEM, Replacement), By Vehicle Type (Passenger Cars, LCV, M & HCV, Two-Wheelers, Off-The-Road, Others), By Distribution Channel (Online, Offline), By Region (Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, North West, Free State, Northern Cape), Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: July 2022
  • Report ID: BWC21201
  • Available Format: PDF
  • Page: 139

Report Overview

Factors driving the growth of South Africa Tire Market are growing automotive industry, increasing demand for electric vehicles, and growing industrialization in the country. Moreover, the growing penetration of Chinese and cost-effective tires is also fueling the growth of the South Africa tire market...

South Africa Tire Market- Industry Trends & Forecast Report 2028

South Africa Tire market was worth USD 2,093.2 million in the year 2021 and is expected to reach USD 3,041.9 million by 2028. The data generated by the study further reveals that the market is likely to grow at a CAGR of 5.3% during 2022-2028 (forecast period). Rapid development in the automobile sector of South Africa is contributing to the growth of the tire market. The South African tire market is proliferating due to the dominance of the automotive manufacturing industry and expanding foreign investment to increase tire production capacity.

Moreover, as South Africans' living standards rise, the demand for vehicles will increase, further propelling the country’s tire market. The growing sales of electric vehicles and demand for tires from agriculture and mining sector is expected to presence lucrative opportunities for the growth of the South Africa tire market during the forecast period.

South Africa Tire Market

Tire Overview

Tires are ring-shaped, circular elements of a vehicle that are mounted on rims and inflated with air. The tire's primary function is to protect the wheel rim while also providing tractive force between the vehicle and the road surface. When tires move over rough surfaces, they produce a flexible cushion that lowers vibration and absorbs stress. Since its inception, natural rubber has been widely employed in tire manufacture. Modern tires, on the other hand, are made of synthetic rubber, carbon black, steel wires, and other materials.

Tires offer a footprint, referred to as a contact patch, that is designed to match the vehicle's weight to the bearing strength of the surface it rolls over by applying a bearing pressure that does not cause the surface to deform unduly. Synthetic rubber, natural rubber, cloth, and wire, as well as carbon black and other chemical compounds, are used in modern pneumatic tires

South Africa Tire Market Trends

Growth Drivers

Expanding Automobile Production and Foreign Investment

The South African Revenue Service (SARS) announced the updated Automotive Production Development Programme (APDP) regulations, which are legislated in Schedule No.3 of the Customs and Excise Act, just over a year ago, on February 5, 2021. The APDP is essentially South Africa's long-term strategy for expanding the automobile sector. The production incentive plan aims to create an environment that allows registered light motor vehicle manufacturers and component manufacturers in South Africa to considerably increase production volumes and value addition.

South African President Cyril Ramaphosa stated in February 2022 that automobile manufacturers expanding production facilities would consolidate South Africa's status as a worldwide participant in the auto manufacturing sector. As part of the government's effort to boost the manufacturing sector, the government would focus on getting the manufacturing sector back to full production, implementing the Black Industrialist Fund (a South African policy that leverages the unlocking of the industrial potential of black owners and managed businesses in South Africa).

Moreover, with the presence of leading international tire manufacturers, including Continental, Bridgestone, Goodyear, and Sumitomo Rubber is significantly boosting the local production of tires in South Africa. These companies are active on the global market and have their production units established in South Africa’s prominent cities, such as Port Elizabeth, Brits, Uitenhage, and Ladysmith. Furthermore, tire importers are gaining traction among automotive OEMs that produce South African-assembled vehicles for the domestic markets and exports.

Restraints

Increasing Penetration of Unsafe and Used Tires

Car tire safety is still a major issue that, if addressed successfully, can help to reduce the amount of carnage on South African roads. According to the South African Road Traffic Management Corporation (RTMC), 14071 individuals died on South African roads in 2016, with pedestrians accounting for 35% of those killed. All crashes, including fatalities, are estimated to cost the economy roughly USD 9.17 billion per year. As a result, ensuring that all cars in South Africa have good tires will go a long way toward saving lives and easing the economic load.

A burst back-wheel tire may cause the vehicle to 'fishtail' as control of the rear of the vehicle is lost, whereas a front-wheel tire burst causes the automobile to immediately turn in the direction of the burst tire. When driving at a high rate, this can lead to a serious and often fatal accident. Therefore, rising penetration of these unsafe tires are hindering the market growth in South Africa.

Impact of COVID-19 On the South Africa Tire Market

The abrupt outbreak of the COVID-19 pandemic has adversely impacted South Africa’s tire market. The import and export of vehicles were temporarily halted, resulting in a shorter supply of tires. The production activities of OEMs with operations in South Africa were also limited. However, with the emergence of online platforms for the purchase and sale of tires, the market is expected to recover soon.

The consequence of COVID-19 on the tire industry as well as its materials suppliers has been tremendous as the industry remained shut down for much of the first half of 2020. The replacement market also suffered from a sharp decline in production which continued through the second half of the year.

The aggregate economic impact of COVID-19 on foremost tire manufacturers in 2020 has been gigantic, with most corporations reporting low earnings significantly. For instance, For the first time in 60 years, Bridgestone posted its net loss. The monetary impact of the disease forced several tire makers to carry out the strategic reviews of their operations.

The demand for tires in the country declined significantly, incurring losses to the market. According to Sumitomo, a leading tire manufacturing company, the international demand for tires dropped in 2020 due to the influence of the COVID-19 Pandemic, with yearly gross demand falling to around 1.6 billion tires, which is just 86% of the preceding year’s demand level. Additionally, global demand is not likely to recover to pre-pandemic levels until around 2022

South Africa Tire – By Type

Based on type, the tire market is segmented into radial, and bias. Radial segment dominated the market in 2021 with the share of 55.76% and market valuation of USD 1,167.2 million. Radial Tires are expected to expand at a faster rate during the forecast period, owing to its superior features such as increased strength and flexibility. The radial tires effectively absorb bumps and socks, giving the driver and passengers in the vehicle a smooth ride. It also lessens ground compaction and the likelihood of vehicle damage. All of these qualities make it more appealing to end users, resulting in a surge in radial tire demand in South Africa.

South Africa Tire Market Share

South Africa Tire Market – By Size

Based on size, the market is segmented as 10"-12“,13"-15“, 16"-18“, 19"-21“ and >21“ inches”. The 13"-15" segment has accounted for the largest market share of 49.32% in 2021, with a market value of USD 1,032.32 million. It is expected to register the highest CAGR of 5.5% during the forecast period. The 16"-18" segment was the second-largest market in 2021, valued at USD 471.86 million, it is projected to exhibit a CAGR of 5.4%. South Africa is currently fulfilling majority of its demand from imports. The tire comes in various sizes in the South Africa tire market. Different sizes of tires come for other vehicles types under different configurations. With the rising concerns to mitigate pollution and climate change, rising fuel prices and shift in consumer preference towards electric vehicles have propelled the demand for tires.

Competitive Landscape

The leading players in the South Africa Tire market are Bridgestone Corporation, Sumitomo Rubber Industries, Continental tire SA Ltd., Yokohama Rubber Company, Goodyear South Africa Ltd., Apollo Tires, Auto & Truck Tyres Ltd., Bandag Southern Africa (Pty) Ltd., Michelin, Dunlop tires, and other prominent players.

In terms of product launches, integration of new technology, mergers and acquisitions, and collaboration with other players and organizations, market players compete with one another. Furthermore, players in the South African tire sector are attempting to commercialize the technology as soon as possible in order to gain a larger portion of the market. Bridgestone, Michelin, Good Year, Continental AG, and Sumitono are the main tire manufacturers in South Africa, and they are all owned by international tire businesses with global footprints. These four companies provide tires to automakers and the tire replacement market, as well as sending consignments to other African countries. In South Africa, an average of 11 million tires are sold each year.

 

Recent Developments

  • May 2022 – Bridgestone has introduced a new line of ultra-high-performance tires for South Africa's demanding agricultural market. Bridgestone South Africa's Farm Manager, Willie Stander, says the new agriculture range is in line with the company's focus on offering solutions for specific industry sectors. For many years, Bridgestone's Firestone brand has been active in the agriculture sector. With the addition of the Bridgestone brand, the company's solution offering expands to include the high-end of the market. Bridgestone farm tires will be supported locally by an established support staff, which will provide clients with a comprehensive variety of training, product clinics, and on-site product analysis as needed.

 

  • September 2021: The Goodyear Tire & Rubber Company announced that all of its Goodyear plants in Europe and Turkey* will use 100 % renewable energy by the end of 2022, the first of a multi-phase plan to procure 100 % renewable energy in all of its facilities across Europe, the Middle East, and South Africa. According to the company's most recent Corporate Responsibility Report, the company has already reduced its intensity by 19 percent by 2020.

Scope of Report:

Attribute Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Million
Market Coverage South Africa
Product/Service Segmentation By Type, By Size, By End Use, By Vehicle Type, By Distribution Channel
Key Players The leading players in the South Africa Tire market are Bridgestone Corporation, Sumitomo Rubber Industries, Continental tire SA Ltd., Yokohama Rubber Company, Goodyear South Africa Ltd., Apollo Tires, Auto & Truck Tyres Ltd., Bandag Southern Africa (Pty) Ltd., Michelin, Dunlop tires.

 

By Type  

  • Radial
  • Bias

By Size

  • 10”-12”
  • 13”-15”
  • 16”-18”
  • 19”-21”
  • >21 inches

By Distribution Channel

  • Online
  • Offline

By End-Use

  • OEM
  • Replacement

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two-Wheeler
  • Off-The-Road (OTR)

By Region

  • Gauteng
  • KwaZulu-Natal
  • Western Cape
  • Eastern Cape
  • Mpumalanga
  • Limpopo
  • North West
  • Free State
  • Northern Cape
  1. Research Framework
    1. Research Objective
    2. Component Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
      1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation
  3. Executive Summary
  4. South Africa Tire Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    3. Technological Landscape/Recent Development
    4. Regulatory Framework
    5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  5. South Africa Tire Market Overview
    1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
    2. Market Share & Forecast
      1. By Type
        1. Radial
        2. Bias
      2. By Size
        1. 10"-12"
        2. 13"-15"
        3. 16"-18"
        4. 19"-21"
        5. >21"
      3. By End-Use
        1. OEM
        2. Replacement
      4. By Vehicle Type
          1. Passenger Cars
          2. LCV
          3. M & HCV
          4. Two-Wheelers
          5. Off-the-Road (OTR)
          6. Others
      5. By Distribution Channel
        1. Online
        2. Offline
      6. By Region
        1. Gauteng
        2. KwaZulu-Natal
        3. Western Cape
        4. Eastern Cape
        5. Mpumalanga
        6. Limpopo
        7. North West
        8. Free State
        9. Northern Cape
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
  7. Impact of COVID-19 on South Africa Tire Industry
  8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
    1. Bridgestone Corporation
    2. Michelin
    3. The Good Year Tire & Rubber Company
    4. Continental AG
    5. Sumitomo Rubber Industries, Ltd.
    6. Apollo Tyres Ltd.
    7. Pirelli & C S.p.A.
    8. The Yokohama Rubber Company
    9. Hankook Tire & Technology Co.,Ltd
    10. Toyo Tire Corporation
    11. Auto & Truck Tyres Ltd.
    12. Bandag Southern Africa (Pty) Ltd.
    13. Dunlop Tyres SA
  9. Key Strategic Recommendations

 

List of Figures

 

Fig 1: South Africa Tire Market Segmentation

Fig 2: South Africa Tire Market Size, By Value (USD Million)

Fig 3: South Africa Tire Market Share (%), By End-Use, By Value (in %), 2021

Fig 4: South Africa Tire Market Industry Value Chain Analysis

Fig 5: South African commodity price index

Fig 6: Projected Uptake of EVs in Cape Town

Fig 7: Projected Increase in Energy Consumption in Cape Town

Fig 8: Vehicle Production Market Share of the top OEMs in South Africa

Fig 9: Porters Five Forces Analysis

Fig 10: South Africa Tire Market Size, By Value (USD Million), 2018-2028

Fig 11: South Africa Tire Market Share (%), By Type, By Value, 2018-2028

Fig 12: South Africa Tire Market Share (%), By Size, By Value, 2018-2028

Fig 13: South Africa Tire Market Share (%), By End-Use, By Value, 2018-2028

Fig 14: South Africa Tire Market Share (%), By Vehicle Type, By Value, 2018-2028

Fig 15: South Africa Tire Market Share (%), By Distribution Channel, By Value, 2018-2028

Fig 16: South Africa Tire Market Share (%), By Region, By Value, 2018-2028

Fig 17: South Africa Tire Market: Market Share Analysis, 2021

 

List of Tables

 

Table 1: South Africa’s contribution to World Mineral Reserves: 2020

Table 2: South Africa market share of global vehicle production, 2013-2021

Table 3: South Africa Tire Market Size, By Type, By Value (USD Million), 2018-2028

Table 4: South Africa Tire Market Size, By Size, By Value (USD Million), 2018-2028

Table 5: South Africa Tire Market Size, By End-Use, By Value (USD Million), 2018-2028

Table 6: South Africa Tire Market Size, By Vehicle Type, By Value (USD Million), 2018-2028

Table 7: South Africa Tire Market Size, By Distribution Channel, By Value (USD Million), 2018-2028

Table 8: South Africa Tire Market Size, By Region, By Value (USD Million), 2018-2028

Table 9: List of Key Players and Their Offerings

Table 10: List of Key Players and Their Offerings

Table 11: List of Key Players and Their Offerings

Table 12: List of Key Players and Their Offerings

Table 13: Competitive Benchmarking, by Operating Parameters

Table 14: Competitive Benchmarking, by Operating Parameters

Table 15: Competitive Benchmarking, by Operating Parameters

Table 16: Bridgestone Corporation Company Overview

Table 17: Bridgestone Corporation Financial Analysis

Table 19: Michelin Financial Analysis

Table 20: The Good Year Tire & Rubber. Company Overview

Table 21: The Good Year Tire & Rubber Company and Subsidiaries’ Financial Analysis

Table 22: Continental AG Company Overview

Table 23: Continental AG Financial Analysis

Table 24: Sumitomo Rubber Industries, Ltd.  Company Overview

Table 25: Sumitomo Rubber Industries, Ltd. Financial Analysis

Table 26: Apollo Tyres Ltd. Company Overview

Table 27: Apollo Tyres Ltd. Financial Analysis

Table 28:  Pirelli & C S.p.A. Overview

Table 29:  Pirelli & C S.p.A. Financial Analysis (USD Million)

Table 30: The Yokohama Rubber Company Overview

Table 31: The Yokohama Rubber Company Financial Analysis (USD Million)

Table 32: Hankook Tire & Technology Co.,Ltd. Overview

Table 33: Hankook Tire & Technology Co., Ltd. Financial Analysis (USD Million)

Table 34: Toyo Tire Corporation Overview

Table 35: Toyo Tire Corporation Financial Analysis (USD Million)

Table 36: Auto & Truck Tyres Ltd. Company Overview

Table 37:  Bandag Southern Africa (Pty) Ltd. Company Overview

Table 38: Dunlop Tyres SA Company Overview

 

 

Market Segmentation

By Type  

  • Radial
  • Bias

By Size

  • 10”-12”
  • 13”-15”
  • 16”-18”
  • 19”-21”
  • >21 inches

By Distribution Channel

  • Online
  • Offline

By End-Use

  • OEM
  • Replacement

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two-Wheeler
  • Off-The-Road (OTR)

By Region

  • Gauteng
  • KwaZulu-Natal
  • Western Cape
  • Eastern Cape
  • Mpumalanga
  • Limpopo
  • North West
  • Free State
  • Northern Cape
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Frequently Asked Questions (FAQs):

Ans: Offline segment is growing at a higher CAGR in the South Africa tire market.
Ans: The passenger car segment accounted for the largest share in the end-use segment of the South Africa tire market.
Ans: The country’s tire market reached USD 2,093.2 Million in 2021.
Ans: Growing automotive industry, increasing demand for electric vehicles, and growing industrialization in the country.
Ans: Bridgestone Corporation, Sumitomo Rubber Industries, Continental tire SA Ltd., Yokohama Rubber Company, Goodyear South Africa Ltd., Apollo Tires, Auto & Truck Tyres Ltd., Bandag Southern Africa (Pty) Ltd., Michelin, Dunlop tires.