Growth in the South African commercial vehicle segment is boosting tire demand in that sub-Saharan country and should increase revenue for tire manufacturers over the next five years, according to a research firm.
TechSci Research's "South Africa Tyre Market Forecast & Opportunities 2019" projects a 9 percent increase in revenue for tire sellers in South Africa between 2014 and 2019.
Goodyear, Apollo, Continental, and Bridgestone account for more than 50 percent of tire sales in the country, while Michelin, Pirelli, Kumho and Yokohama are growing their business in the country, according to the report.
The South African government's Automotive Production and Development Program (APDP) in 2013 is expected to "significantly augment the domestic automobile production over the next few years," according to the report.
Favorable trade agreements have helped major Toyota, Volkswagen, Nissan, Renault, General Motors, Mercedes Benz, BMW, Ford, Fiat, Iveco, Isuzu, MAN, Volvo, and Scania establish manufacturing or assembly plants in the country.
For the full press release, click here.