BURNABY, Canada, April 14, 2015 /PRNewswire/ --
Growth in automotive sector, government incentives and support from financial institutions to drive South Africa tyre market through 2020
According to a recently released TechSci Research report, "South Africa Tyre Market Forecast & Opportunities, 2020", tyre market in South Africa is forecast to grow at a CAGR of over 11% through 2020. Prominent reasons for this soaring growth are government incentives encouraging domestic and foreign investment in the sector, and growth in automotive sector. Incentives are generally in the form of tax holidays, rebates and accelerated depreciation. Another factor driving the market is ease of financing facilitated by financial institutions to minimize the burden of high deposits.
Tyre industry in South Africa is dominated by four global tyre companies- Goodyear, Bridgestone, Continental and Sumitomo. These companies have established their tyre manufacturing plants in South Africa to cater to the growing demand for tyres in the country. Apart from these companies, Michelin, Pirelli, Kumho and Yokohama are other leading players in the market, addressing the rising demand for tyres in South Africa through imports.
Passenger car tyre segment is projected to witness fastest growth during the forecast period. Growth in this segment can be attributed to the estimated increase in passenger car sales on account of rise in disposable income, expanding consumer base, increasing urbanization and introduction of electric vehicles in the market. Increase in passenger car sales is propelling growth in automotive sector as well as tyre market in South Africa.
"Citing growth opportunities in passenger car market, major global automotive companies such as Toyota, Fiat, Volkswagen, Nissan, Ford, General Motors, Mercedes Benz, Renault, BMW, Iveco, Isuzu, MAN, Volvo and Scania, have established their manufacturing or assembly plants in South Africa. Apart from catering to domestic demand, these companies also export automobiles to neighboring countries, consequently fueling growth in South Africa OEM tyre market.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"South Africa Tyre Market Forecast &Opportunities, 2020" has evaluated the future growth potential of South Africa tyre market and provides statistics and information on market structure, exports, imports and future growth of the market. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in South Africa tyre industry.
About TechSci Research
TechSci Research is a global market research and consulting company with offices in Canada, UK and India. TechSci Research provides market research consulting services in six verticals - Information Technology, Chemicals, Water & Water Recycling, Consumer Goods & Retail, Automotive and Energy & Power. The company uses proprietary innovative business model that focuses on improved productivity that also ensure the creation of high-quality reports. With more than 100 client engagements with fortune 500 clients, TechSci Research enjoys the status of a premium market research services provider in the industry.
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SOURCE TechSci Research