Iran Tire Market to Expand 12 Percent by 2020

According to recently released TechSci Research report, "Iran Tyre Market Forecast & Opportunities, 2020'’, the tire market in Iran is forecast to grow at over 12 percent CAGR during 2015-2020. Anticipated growth in automobile production and sales is one the major factors expected to boost tire sales over the next five years in the country.

Owing to restrictions on the operations of various major international tire brands in Iran, domestic tire brands such as Barez tyre, Yazd tyre, Kavir tyre, Goldstone tyre, etc. have been dominating the country's tire market over the past few years, according to the researchers.

With the signing of a Joint Comprehensive Plan of Action (JCPOA) between Iran and P5 countries on July 14, 2015, it is expected to stimulate economic activity in the country over the next five years. This is expected to benefit the automobile and tire industry in Iran through 2020. The tire market in Iran is concentrated mainly in the Tehran and Kermanshah regions. Tehran is the economic center of Iran and about 50 percent of the automobiles sold in Iran every year are registered in this city only. On the other hand, about 50 percent of the Iran's onshore oil reserves are located in Khuzestan basin in Kermanshah region, according to TechSci Research.

"Passenger car tire segment remains the most dominant segment in the tire market in Iran. The trend is expected to continue over the forecast period as well. In 2014, more than two-third of the country's tire market was accounted for by passenger car segment. Moreover, the passenger car tire segment is dominated by sedan car tires, and this trend is expected to continue in Iran during the forecast period", said Karan Chechi, research director with TechSci Research.