Report – Brazil’s drivers moving to replacement tyres
A recently published report by TechSci Research suggests that the Brazilian replacement tyre market will grow as the country’s increasing prosperity encourages drivers away from retreaded tyres. Karan Chechi, research director with TechSci Research argues: “The Brazilian tyre market is anticipated to grow at a compound annual growth rate of around 13 per cent for the next five years. It is forecast that its replacement tyre market will grow at a much faster pace than anticipated earlier due to the increasing number of automobiles on Brazilian roads, [which is expected] to reach 63 Million units by 2016.”
Brazil has a historically higher proportion of retread tyres than other markets due to low per capita income and the poor conditions of the country’s roads, making it the second largest retread market in the world, according to the report. With the country’s increase in per capita income buyers trends are moving towards replacement rather than retreading. Alongside increasing demand from automobile manufacturers, the Brazilian replacement market is predicted to drive the Brazilian tyre industry landscape in the coming years, as predicted in the report.
TechSci’s report also deals with market share; at the end of 2011, Pirelli was leading the market with majority original equipment manufacturer tie-ups – the largest revenue segment – followed by Goodyear, Bridgestone and others. The report expects that over the next five years, market share will encounter strong changes, with “phenomenal growth” predicted.