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Saudi Arabia's tyre market set to grow 17pc

BURNABY, CANADA, December 18, 2014

The tyre market in Saudi Arabia is set to grow at an average of 17.19 per cent during the period from 2014 to 2019, according to the recently released TechSci Research report.

The expanding automobile fleet, favourable government policies and increasing foreign investments in automotive sector driving tyre industry in the kingdom, said the report entitled 'Saudi Arabia Tyre Market
Forecast & Opportunities, 2019.'

The passenger car tyre segment remains the dominant market segment in Saudi Arabia, followed by commercial vehicle tyre segment, with these two segments cumulatively accounting for a majority portion of overall tyre sales last year, said the report.

The passenger car tyre segment is anticipated to continue dominating Saudi Arabia tyre market, exhibiting fastest growth rate across all tyre segments over the next five years, it said.

Western Saudi Arabia, comprising holy cities of Makkah and Madinah, along with the Central region that includes Riyadh province, held significant market share in the country's tyre market.

Considering the growth opportunities existing in these regions, the government is also promoting tyre industry in western and central region due to various infrastructural projects and developments and coming up in the region.

The low-cost tyres procured from Chinese players occupy a large chunk in Saudi Arabia, especially within the unorganised sector, said the report.

The prominent tyre players like Bridgestone, Michelin, Continental, Goodyear and Yokohama have a strong presence in Saudi Arabia's organised tyre market.

However, the sales of Chinese brands is likely to diminish in the coming year, on account of rising consumer demand for premium quality branded tyres.

Saudi Arabia’s extreme climatic conditions throughout the year also make superior quality tyres inevitable.

Karan Chechi, research director, said: "Increasing industrialisation, new investments, shorter tyre replacement cycle, and rising commercial vehicle sales are set to influence the growth trajectory of tyre market in Saudi Arabia.

The report was intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. It also  identified and analyzed the emerging trends along with essential drivers, challenges and opportunities available in the Saudi Arabia tyre market. - TradeArabia News Service




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