Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 06, 2015 02:00 AM

Mexican tire demand growing 7.4% a year — study

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Mexican Economics Ministry photo

    MOUNTAIN VIEW, Calif. — Demand in Mexico for replacement market tires is poised to grow at nearly 7.5 percent a year the next three to five years, according to a new market study from Frost & Sullivan Inc.

    Distributors and installers sold roughly 22.7 million cars and light truck tires and 3.2 million medium and heavy-duty vehicle tires last year, which Frost & Sullivan estimated to be worth about $4.5 billion in retail-level revenue.

    Strong local vehicle sales and a growing economy have increased the size and purchasing power of Mexico's middle class population, Frost & Sullivan said, and are driving aftermarket tire growth.

     Poor road conditions in some areas of the country also help to increase tire replacement rate.

    The market could grow to nearly 32 million car/light truck tires and 4.7 million truck/bus tires by 2019, the research firm said.

    Luxury cars and light trucks are the fastest-growing passenger vehicle segments, both of which contribute to larger rim-diameter tire sales, thereby supporting price and revenue growth, Frost & Sullivan said.

    Retreaded tires are gaining favor in the heavy-duty vehicles segment and should account for a quarter of sales by 2018.

    Frost & Sullivan estimates there are about 100 brands in the market, including local brands, low-cost import brands and premium brands. Bridgestone, Michelin, Continental, Goodyear and Pirelli together account for more than 40 percent of the market.

    At the same, though, the industry is plagued by the proliferation of used tires — both legal and illegal — the number of which is estimated to run about 2 million annually. As a price-driven market, the researchers said, Mexico accepts used and low quality tires from China, South Korea, and the U.S. in the commercial segment.

    Despite the low-cost imports, Mexico is poised to become a net tire exporter, base on the amount of investment in production by major tire makers to supply the fast-growing original equipment (OE) market, meet local market demands and export tires to the U.S. and other neighboring countries.

    Six different companies produce tires in Mexico — Bridgestone Corp., Continental A.G., Cooper Tire & Rubber Co., Group Michelin, JK Tyre & Industries Ltd. and Pirelli Tyre S.p.A. — with Goodyear to join them by 2017.

    Frost & Sullivan research also shows the total number of light vehicles in operation in Mexico to be growing 2.1 percent annually vs. just 1.4 percent in the U.S.

    For more details on the study, go to Frost.com or call 877-463-7678.

    Related Articles
    JK Tyre readies drive into U.S. via Mexico
    Brembo building caliper plant in Mexico
    Michelin to add Uniroyal truck tires in Canada
    Mexico fuels surge in 2014 N.A. vehicle output
    Nexen opens Americas HQ in Calif.
    Ronal breaks ground for Mexico wheel plant
    Ceneviz to head Cooper Latin America
    Dinelli's goal: Grow the P-brand in North America
    Toyota planning first passenger car plant in Mexico
    Goodyear confirms Mexico as new plant site
    USW 'not surprised' by Goodyear Mexico move
    Goodyear breaks ground for Mexico factory
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    EU approves Yokohoma's Trelleborg Wheel Systems purchase
    2
    Hankook Tire confirms arrest of Chairman Cho Hyun-bum
    3
    Conti marking Euro car tires with EV-compatible symbol
    4
    Winter tire usage in Canada keeps growing
    5
    Gold Trip: Conti EV strategy remains consistent
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION