Colombia tire market to see continued growth

NEW YORK — A continuously expanding fleet of passenger cars and commercial vehicles, coupled with increasing automobile production, is expected to drive Colombia's tire market through 2022.

According to “Colombia Tire Market Forecast & Opportunities, 2022” — a report recently released by TechSci Research — the tire market in Colombia is anticipated to cross $1.5 billion by 2022 on account of growing automobile sales and favorable government policies. Moreover, an expanding automobile fleet coupled with growing gross national income per capita — which increased from $6,180 in 2011 to $7,140 (U.S. dollars) in 2015 — are expected to aid the country's tire market over the next five years, the company said.

In terms of vehicle type, the firm said the tire market in Colombia has been segmented into passenger car; two-wheeler; light commercial vehicle; medium and heavy commercial vehicle; and off-the-road.

TechSci is a research-based management consulting firm providing market research and “advisory solutions” to its customers worldwide, spanning a range of industries. It has offices in New York City as well as British Columbia, India and the United Kingdom.

Colombia's central region acquired the largest share in the country's tire market in 2016, TechSci said. “Owing to the presence of the country's capital, and being the hub of various commercial and cultural activities, the region is anticipated to maintain its dominance over the next five years as well.” Radial tires dominated the country's tire market last year. The firm noted that major players operating in the country's tire market include Goodyear, Group Michelin, Hankook Tire Co. Ltd. and Toyo Tire & Rubber Co.

Tire companies mentioned in the report include: Bridgestone De Colombia, S.A.S (Bsco); Continental Tire Colombia S.A.S.; Giti Tire Pte. Ltd.; Goodyear de Colombia SA; Hangzhou Zhongce Rubber Co. Ltd.; Hankook Tire Colombia Ltda.; Industria Colombiana de Llantas S.A.; Pirelli de Colombia S.A.S.; Toyo Tire & Rubber Co.; and Triangle Tyre Co. Ltd.

“Continuous growth in infrastructure and construction sectors in the country is the major factor contributing to the growth of the country's tire market,” said Karan Chechi, TechSci's research director. “The government as well as private investors are investing heavily in various infrastructural and development projects. Thus, the need for commercial vehicles is anticipated to increase as they play a vital role in transportation of raw materials, consequently aiding Colombia tire market.”

TechSci's report provides an analysis of the Colombia tire market's potential along with statistics and information on market sizes, shares and trends. The firm said the report offers “cutting-edge market intelligence” and also “identifies and analyzes emerging trends along with essential drivers and key challenges faced by the industry.”

In addition to the country's expanding car production and automobile fleet aiding its tire market, Colombia's increasing population, which stood at 48.22 million in 2015, coupled with growing urbanization — which was 76.4 percent of total population in 2015 — is “boosting the demand for automobiles in the country, consequently positively influencing the country's tire market,” TechSci said.

“Furthermore, the rapidly expanding middle class population in Colombia is pushing the demand for automobiles, which, in turn, is generating huge demand for tires. Moreover, expanding fleet coupled with increasing investments in agriculture sector by public as well as private entities are also boosting” tire demand, it added.

While Colombia's tire market is supplied by the OEM as well as replacement industries, according to TechSci, more than 95 percent of tires sold in the country are in the replacement category.

The information contained in the report is based on both primary and secondary research, TechSci said, noting that its primary research includes interviews with tire companies, distributors and industry experts. Secondary research includes an “exhaustive search of relevant publications such as company annual reports, financial reports and proprietary databases.”