Market Trends of Automotive Tires Industry
This section covers the major market trends shaping the Automotive Tires Market according to our research experts:
Increased Demand for High-performance Tires
The automotive high-performance tires market is expected to witness high growth during the forecast period. The growth is driven by numerous factors, such as the increasing inclination of people toward sports like car and bike racing and extreme terrain rallies. OEMs use these events as a platform to market their products and increase brand visibility. Increasing disposable income of customers living in emerging economies is leading to a growth in demand for higher-capacity vehicles such as SUVs and crossover vehicles. Rapid infrastructure development in developing economies, especially India and China, has caused a growth in sales of commercial vehicles and construction vehicles. The replacement and aftermarket tire market presents a huge opportunity for vehicle manufacturers to generate revenue. Customers are choosing high-performance tires over traditional rubber tires because rubber tires are subjected to wear and tear easily.
Europe has shown a strong demand for high-performance tires due to the presence of a large number of OEMs such as BMW, Volkswagen, Ferrari, Daimler, and Renault. These OEMs regularly participate in motorsports events held in the continent and showcase their new line of innovative products that cater to customers' need for safe, cleaner, and cost-effective vehicles and components.
Various major players in the market are investing in new products for high-performance tires. For instance, in March 2021, Versalis, Eni's chemical company, and Bridgestone EMIA signed a joint development agreement for the research, production, and supply of synthetic rubber and new elastomer grades, including styrene-butadiene rubber (SBR), for the production of high-performance tires.
Asia-Pacific is Expected to Grow at the Fastest Rate in the Market
The world's largest automotive market shrank for a third straight year as Chinese car sales declined by more than 6% in 2020. Automakers in China sold 19.29 million passenger vehicles in 2020. Whereas in April 2021, the China Association of Automobile Manufacturers (CAAM) announced that according to aggregated data of sales figures for major companies, cumulative sales from January to March reached 6.344 million units.
India is another major market in the region, with its passenger vehicle sales improving after the third quarter of the year, reaching 3,10,294 units in October 2020 compared to 2,71,737 units in the same month last year, a 14.19% growth. As per the Federation of Automobile Dealers Associations (FADA), passenger vehicle sales in November 2020 were 2,91,001 units compared to 2,79,365 units in November 2019, with a 4.17% growth.
According to the "2020 Domestic Demand for Automobile Tires" released by the Japan Automobile Tyre Manufacturers Association (JATMA), the sales of new automobile tires for vehicles in 2020 were 36,439,000 down, a 17% decrease year-to-year. The first half of 2020 was affected due to the influence of COVID-19; however, demand for new vehicle tires began to recover in the second half of the year due to strong new vehicle productions.
Major players in the region are introducing new tires to gain an advantage over their competitors. March 2021, Apollo Tires introduced Apterra Cross tires for the compact SUV segment in India. The Apterra Cross tires are an outcome of the company's research to understand the exact usage patterns of CSUV. The new range of tires is being launched in India, with plans to introduce it in the ASEAN and SAARC markets later.
