The tire market in Algeria is forecast to grow at a CAGR of over 6 percent through 2020. The passenger car tire market is the dominant segment in the country's tire market, followed by commercial vehicle tire and two-wheeler tire segments, according to a new Research and Markets study "Algeria Tyre Market Forecast and Opportunities, 2020."

Passenger car sales increased at a CAGR of 12 percent during 2010-2014, consequently promising strong growth in the demand for passenger car replacement tires over the next few years. In addition, Northern region comprising Algiers and Oran, accounted for majority of the overall tire demand in the country, and the region is expected to continue its market dominance over the forecast period as well. The country tire market is predominantly dominated by Chinese tire brands. These players are substantially larger than other suppliers and primarily cater to the demand for replacement tires in the country, according to the researchers.

Algeria's automotive market is one of the largest automotive markets in Africa, according to the study’s authors. The tire market in the country has been growing over the past five years on account of increasing demand for automobiles, especially passenger cars. Due to lack of domestic automobile production facilities, the Algerian tire market is completely dominated by replacement tire segment. Consequently, the tire market in the country is totally import-dependent, with majority of the tires being imported from China, Japan, South Korea and Indonesia.

One of the major challenges for Algeria automotive market is that the entire manufacturing sector in the country has been suffering from Dutch Disease, as a result of which, manufacturers are apprehensive of establishing production facilities in the country, according to the study.