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.