Tyre demand to grow 12 per cent annually in Saudi Arabia
Demand for tyres and tubes is set to grow by 12 per cent annually in Saudi Arabia according to a new report published by Research and Markets called "Automotive Tire Industry in Saudi Arabia". The largest market for tyres in the Middle East, Saudi Arabia still imports most of its demand, with the annual value of tyres needed to feed the market adding up to almost US$800 million. This equates to 13 million units every year and volumes are expected to keep on rising as consumer demand increases over the next few years.
The Saudi market is described as a magnet for leading international brands, with Japanese and American tyre majors leading the way, followed by a strong representation from European and Asian brands. All tyres imported into Saudi Arabia have to pass safety specifications laid down by the Saudi Arabian Standards Organization, before they can be marketed in the country.
Major players in the market are Yokohama, Bridgestone, Hankook, and Michelin. In 2010, Japanese manufacturers topped the list of suppliers with a 41 per cent share of the Saudi import market, while US companies came in fourth place after South Korean and Chinese brands. Saudi tyre industry practitioners believe that prices increases over the last two years has led to some traders buying low-quality low-priced tyres. On the other hand, although the tyre prices are rising, domestic demand in the country has not gone down.
There are said to be approximately 60 tyre brands sold in Saudi Arabia, half of which are well-known brands sourced from companies in the US, Japan, South Korea, China, Indonesia, Turkey, India and Europe.
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