Qatar Tire Market Projected to Grow 6 Percent
According to a recently released TechSci Research report, “Qatar Tyre Market Forecast & Opportunities, 2019’’, the tire market in Qatar is forecast to grow at a compound annual growth rate (CAGR) of about 6 percent during 2014-19. Moreover, the retreading tire market in the country is projected to outperform and grow at a CAGR of around 9 percent during the same period. Sales of passenger vehicles, commercial vehicles, and construction equipment are expected to increase over the next five years in Qatar, creating a positive market outlook for the country’s tire market, according to the report.
The Qatar tire market is a largely replacement and import driven market with significant penetration of Chinese tire brands due to their easy availability and cost effective pricing than flagship brands. Harsh climatic conditions generally reduce the shell life of tires in Qatar to about one-and-a-half years. Short product life, booming construction projects due to the Qatar National Vision Plan 2030 and ongoing infrastructure projects due to upcoming FIFA World Cup 2022 are expected to strongly boost the sales of passenger, commercial, and OTR tires in the country during the forecast period, according to the report.
“[The] majority of construction activities are planned in Doha and Ar Rayyan region, which is expected to witness maximum demand growth for commercial, OTR, and passenger tires. Besides, rise in employment, urbanization and immigration as well as increase in per capita GDP have allowed consumers in Qatar to readily accept new tire technologies.” said Karan Chechi, research director with TechSci Research, a research based global management consulting firm.
Though the demand for Chinese tires is currently high in Qatar, the market share of Chinese tires in the country’s tire market is likely to decline in the coming years due to launch of robust technology and high quality tires by flagship tire brands, which are expected to gain higher popularity among consumers due to their improved lifecycle over the next five years, the report predicted.