Urbanising Kuwait fuels continued imported passenger car tyre demand
Kuwait’s high rate of urbanisation and purchasing power will lead to continued opportunities for imported passenger car tyres, a new report on the country’s automotive segment has revealed. With about 95 per cent of the country’s population residing in urban areas, and private car demand rising, imported PCR tyres have led tyre demand, though the TechSci Research report also suggests that commercial vehicle demand could follow increased mining and oil drilling investments.
Though there are no tyres manufactured in the country locally at present, a proposed joint venture between Marangoni Group and Al-Zahem Industries is expected to contribute to the growth of retreaded tyres. Sales of low cost tyres in Kuwait have risen in recent years, and sales of retreaded tyres are also growing. Consequently companies are increasing their focus on the retreading segment.
TechSci Research’s ‘Kuwait Tyre Market Forecast & Opportunities, 2019’ report says the tyre market in Kuwait is projected to grow at a CAGR of around 11 per cent, in revenue terms, during 2014-19. Implementation of new technologies such as “Seal Inside” technology and Black/White Walled tyres would contribute to the market growth over the next five years, as consumers’ preference for enhanced vehicle safety increases. Several tyre manufacturers are also expected to introduce eco-friendly tyres with more advanced features during the next five years in Kuwait.
The report highlights that key players operating in the tyre market of Kuwait include Bridgestone, Michelin, Yokohama and Goodyear, all of whom are addressing the increasing demand in Kuwait through authorized importers and distributors.
“The high purchasing power of Kuwaitis coupled with the rising demand for passenger cars would contribute significantly to the demand for tyres in the country. While the increasing per capita income is driving the growth of passenger car market, the mining and oil drilling activities in the country are contributing to the growth of commercial vehicles market. Increasing investments coupled with the growing demand for automobiles in Kuwait would significantly augment the tyre demand over the next five years.” said Karan Chechi, research director with TechSci Research, a research based global management consulting firm.