BURNABY, British ColumbiaArgentina's tire market is forecast to grow about 10 percent annually through 2019, according to TechSci Research.
In the Argentina Tire Market Forecast & Opportunities, 2019 market report, the research firm said a low motorization rate coupled with rising disposable income and growing small- and medium-sized business sector is augmenting the penetration of automobiles in Argentina, which consequently promises a bright future for the country's tire market.
TechSci did not disclose actual tire shipment data to back up its forecast, but did say the passenger tire segment dominates shipments.
Moreover, due to Argentina's geographical advantage, low manufacturing cost, and availability of cheap and skilled labor, many leading global automobile manufacturers are setting up their manufacturing units in the country and exporting automobiles to the neighboring countries, said Karan Chechi, research director, thus creating demand growth for OE tires.
Though the growth trajectory of the Argentina tire marketparticularly passenger car segmentwas hit by adverse internal economic conditions in 2012, which consequently affected the demand for tires in the country, passenger car sales witnessed a bounce back in 2013. The sector saw robust double digit growth, thereby boosting the country's tire market, TechSci said, noting the country's growth rate for tires from 2009-13 was 14 percent annually.
About 10 major international automobile producersFord Motor Co., General Motors Co., Iveco S.p.A., Mercedes-Benz A.G., Peugeot-Citroen S.A., Renault S.A., Toyota Motor Co. Ltd., Volkswagen A.G., Fiat S.p.A. and Honda Motor Co. Ltd.operate in Argentina's automotive market. In terms of regional demand share, the Pampas, Dry Pampas and Pampas Sierras regions account for over 60 percent of the country's tire demand.
From a tire supply point of view, Argentina has three manufacturers, Bridgestone Argentina S.a.i.c.; Fate S.a.i.c.i.; and Pirelli Neumaticos S.a.i.c. Continental A.G., Goodyear and Michelin Group are present through sales companies.
Burnaby-based TechSci Research is a global market research and consulting company with offices in Canada, England and India. The report is available at prices ranging from $1,800 for single-user/electronic access to $4,500 for multi-user license/electronic access.
This report appeared in European Rubber Journal, a United Kingdom-based sister publication of Tire Business.