Report Overview

An increasing focus on developing road infrastructure and the country’s expanding tourism industry could boost the growth of Sri Lanka Tire Market during the forecast period between 2023 and 2029.

Sri Lanka Tire Market – Industry Trends & Forecast Report, 2029

Sri Lanka tire market size is projected to grow at a CAGR of 8.25% during the forecast period between 2023 and 2029. Rising private sector investments in the nation's industrial, agricultural, and construction sectors as well as an expanding fleet of commercial vehicles are expected to drive sales growth in two- and three-wheelers. Sri Lankan tire market has expanded over the past five years due to rising fleet and vehicle sales, rising income levels, an expanding infrastructure market, and the simple accessibility of low-interest auto loans.

Sri Lanka Tire Market - Overview

A tire is a rim-shaped, round, air-filled component of a vehicle. Steel, rubber, wire, cotton, glass, silica, and wire reinforced with carbon black are among the synthetic and natural materials used to make it. It is available in tubed and tubeless tires with a bead, bead filler, belts, body ply, inner liner, sidewall, and tread. It assists in dealing with forces acting on the vehicle while it is moving, supports the vehicle's load, and provides shock-absorbent cushions. It contributes to increased vehicle performance, mileage, and passenger safety. It also improves vehicle handling on steep roads and makes stopping easier.

Growth Drivers

Increasing Concerns about Safety and Fuel Efficiency

The government has imposed rigorous tire performance constraints, including fuel savings and braking distance reductions connected to wet grip, in response to growing safety concerns. So, there are numerous opportunities for tire manufacturing businesses to produce tires that can satisfy requirements. The overall fuel efficiency of cars has increased due to suppliers developing extraordinarily efficient tires in response to increased technology improvements. Low rolling resistance (LRR) and self-inflating tire technologies are used by tire manufacturers to increase safety and fuel efficiency. The popularity of pneumatic tires is growing as a result of their increased fuel efficiency. These tires are predicted to be in high demand over the next few years because they are primarily focused on safety and fuel efficiency.

Restraints

High Fluctuations in Raw Material Prices

Synthetic and natural rubber, sulfur, carbon black, and other materials are used to make automotive tires. These raw materials must be present in significant quantities to manufacture vehicle tires. However, the prices of these raw materials fluctuate due to a variety of factors. One of these elements is the availability of materials such as natural rubbers. Also, the government prohibits excessive chopping down of rubber trees across the region. Variations in raw material prices could limit the profit margins of companies in the Sri Lanka tire market.

Impact of COVID-19 on the Sri Lanka Tire Market

The COVID-19 pandemic impeded the expansion of Sri Lanka tire market. The production, supply, distribution, and availability of the raw materials needed to produce tires were impeded by the government's statewide quarantine, which was enacted to stop the virus's spread. Also, the outbreak prompted many people to work from home and remain at home, which decreased the need for individual activity. The state of the nation's economy also had an impact on consumer purchasing power. These elements worked together to significantly reduce the demand for car tires in Sri Lanka, which had an impact on the market's total growth.

Sri Lanka Tire Market

Segmental Coverage

Sri Lanka Tire Market - By Tire Type

On basis of tire type, Sri Lanka tire market is split into Radial Tires and Bias Tires segments. In terms of market share, the radial tires, which also includes the tubeless tire market segment, accounted for a sizable portion of the Sri Lankan tire market. Because of their low rolling resistance and slow rate of deflation, tubeless tires are commonly found on bicycles. Tubeless tires are expected to become more popular in Sri Lanka as tube tires consume more gasoline than tubeless tires.

Sri Lanka Tire Market - By Rim Size

On basis of rim size, Sri Lanka tire market is divided into Below 15 inches, 15-20 inches, and Above 20 inches segments. The tires segment with a rim size of under 15-20 inches holds the highest market share. During the period in analysis, it is expected to grow at a significant CAGR. In the Sri Lanka tire market, the tire is available in a variety of sizes. There are a variety of tire sizes available for various vehicle types and layouts. Rising fuel prices, growing concerns about pollution and climate change, and a shift in consumer preference toward electric vehicles have all contributed to an increase in tire demand.

Sri Lanka Tire Market - By Application

On basis of the application, Sri Lanka tire market is divided into On-road Tires, Off-road Tires, Agricultural Tires, and other segments. As mechanization spreads to sectors such as construction, mining, and agriculture, the market for off-road tires is expanding. Because they have thick threads that provide traction on a variety of surfaces, such as loose gravel, mud, and dirt, these tires are suitable for severe weather conditions and uneven roads. Their deeper and wider grooves, in addition to penetrating sand and dirt surfaces, increase rolling turbulence and stability.

Competitive Landscape

Major players in the Sri Lanka tire market include Continental AG, Bridgestone Corporation, Michelin Group, Goodyear Tire & Rubber Company, Pirelli & C. S.p.A., Apollo Tires Ltd., MRF Tires, Ceat Limited, Yokohama Rubber Co., Ltd., Sumitomo Rubber Industries, Ltd., and Hankook Tire & Technology Co., Ltd. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In August 2022 - CEAT Kelani launched the 'CEAT Milaze X3' tire, for small to mid-sized hatchbacks and sedans. The tire is said to offer superior performance in terms of fuel efficiency, wet grip, and durability. The 'CEAT Milaze X3' tire is equipped with a specially designed tread pattern that provides better handling and improved traction on both wet and dry roads.

Scope of the Report

By Tire Type

• Radial Tires

• Bias Tires

By Rim Size

• Below 15 inches

• 15–20 inches

• Above 20 inches

By Application

• On-road Tires

• Off-road Tires

• Agricultural Tires

• Others