Argentina Tire Market Expected to Grow 10 Percent by 2019
According to "Argentina Tyre Market Forecast & Opportunities, 2019", a recently published comprehensive market report on tire industry in Argentina, the country's tire market is forecast to grow at a CAGR of around 10 percent during 2014-19. The authors of the report wrote that low motorization rate coupled with rising disposable income and growing SME sector is augmenting the penetration of automobiles in Argentina, which consequently promises a bright future for the country's tire market. Though, the growth trajectory of Argentina tire market, particularly passenger car segment, was hit by adverse internal economic conditions in 2012, which consequently affected the demand for tires in the country, the passenger car sales witnessed a bounce back in 2013 with a robust double digit growth, thereby boosting the country's tyre market.
"With the largest share in the country's automobile fleet, the passenger car tire segment continues to dominate the tire market in Argentina. 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. More than half of automobiles produced in the country were exported in 2013. This increasing automotive production is eventually contributing to the demand for tyres in the OEM sector of the country", said Karan Chechi, research director with TechSci Research, a research-based global management consulting firm.
Presently, around 10 major international automobiles producers, including Ford, General Motors, Iveco, Mercedes Benz, Peugeot-Citroen, Renault, Toyota, Volkswagen, Fiat, and Honda, are operating in Argentina's automotive market. In terms of regional demand share, Pampas, Dry Pampas, and Pampas Sierras regions account for over 60 percent of the country's tire demand.