Qatar tyre market to grow at 6pc
Burnaby, August 19, 2014
The tyre market in Qatar is forecast to grow at a compound annual growth rate (Cagr) of about 6 per cent during 2014-19, according to a recently released TechSci research report "Qatar Tyre Market Forecast & Opportunities, 2019''.
Moreover, the re-treading tyre market in the country is projected to outperform and grow at a CAGR of around 9 per cent during the same period.
Sales of passenger vehicles, commercial vehicles, and construction equipment are expected to increase over the next five years in Qatar, creating a positive market outlook for the country's tyre market, the report said.
Rising automobile sales, increasing demand for cost-effective Chinese tyres and imposition of ban on balloon tyres are key trends emerging in Qatar tyre market, a statement said.
The Qatar tyre market is largely a replacement and import driven market with significant penetration of China tyre brands due to their easy availability and cost effective pricing than flagship brands. Harsh climatic conditions generally reduce the shelf life of tyres in Qatar to about one and a half year, it said.
A boost in the sales of passenger, commercial and off-the-road (OTR) tyres in the country is expected during the forecast period attributing to small product life, booming construction projects due to Qatar National Vision Plan 2030 and ongoing infrastructure projects due to upcoming FIFA World Cup 2022, the statement said.
"Majority of construction activities are planned in Doha and Ar Rayyan region, which is expected to witness maximum demand growth for commercial, OTR and passenger tyres.
Besides, rise in employment, urbanisation and immigration as well as increase in per capita GDP have allowed consumers in Qatar to readily accept new tyre technologies." said Karan Chechi, research director with TechSci Research, a research based global management consulting firm.
Though the demand for Chinese tyre is currently high in Qatar, the market share of Chinese tyres in the country's tyre market is likely to decline in the coming years due to launch of robust technology and high quality tyres by flagship tyre brands, which are expected to gain higher popularity among consumers due to their improved life cycle over the next five years, it said. – TradeArabia News Service