Report Overview

Argentina Tire Market - Industry Trends & Forecast Report, 2029

Argentina tire market size was estimated at USD 4.61 billion in 2022. During the forecast period between 2023 and 2029, the size of Argentina tire market is projected to grow at a CAGR of 7.13% reaching a value of USD 6.96 billion by 2029. Major growth drivers for the Argentina tire market include an increasing automobile industry, rising automotive production, economic expansion, and a growing need for high-quality tires in the region. A substantial portion of this market's growth is linked to Brazil, the world's largest importer of cars and auto parts, including tires. Argentina's tire market expansion is further bolstered by its low production costs, a skilled and affordable labor force, and the presence of numerous industry players. Global companies are also keen on expanding their presence in Argentina, expanding their dealer and distributor networks. Over the next five years, the tire market in Argentina will continue to thrive, driven by the industry's growth and increasing demand for passenger cars and commercial vehicles. Brazil's significant role as a tire importer from Argentina also contributes to this market's expansion, along with factors like cost-effective production, a skilled workforce, and the presence of multiple market participants. Hence, such aspects are expected to boost the expansion of the Argentina tire market during the forecast period.

Argentina Tire Market – Overview

The Argentina tire market refers to the industry and market sector in Argentina that deals with the manufacturing, distribution, sale, and servicing of tires for various types of vehicles, including passenger cars and commercial vehicles. This market is characterized by growing demand, driven by factors such as increased automotive production, economic growth, and a need for high-quality tires in the region. It also involves the import and export of tires, both to and from countries like Brazil, which plays a significant role in this market due to its status as the world's largest importer of cars and auto parts, including tires. The Argentina Tire Market is supported by factors like cost-effective production, a skilled labor force, and the presence of numerous industry players.

Argentina Tire Market

Growth Drivers

Expanding Automobile Industry

The Argentina tire market is thriving, driven by the expanding automotive sector and a growing tire replacement rate fueled by an increasing vehicle fleet. Specialized tire development tailored to support electric vehicles' weight, improve grip, and extend tread life is underway. Notable advancements include tires with low rolling resistance, regenerative braking, and reduced noise. The burgeoning automotive industry is spurring a surge in tire demand, encompassing both OEM and replacement segments. Infrastructure development projects and road construction initiatives are further expected to bolster tire demand in the country. Rising passenger car sales, the emergence of electric vehicles, and the adoption of eco-friendly tires are all influencing market growth, with smart and sustainable tire demand set to increase as carbon emission standards rise. The competitive market landscape, driven by innovation, offers consumers a broader selection and more competitive pricing.

Restraints

Competition from Foreign Tire Manufacturers

Argentina tire market faces a challenge from foreign tire manufacturers. Competition from international tire companies can hinder the growth of domestic tire manufacturers in Argentina. The influx of foreign tire brands, often with established global reputations, may lead to pricing pressures and increased competition for market share. While this can benefit consumers through greater choice and competitive pricing, it can restrain the local tire industry's expansion. Local tire manufacturers must focus on innovation, quality, and cost-efficiency to navigate this competitive landscape effectively and maintain their market presence in Argentina.

Impact of COVID-19 on Argentina Tire Market

COVID-19 pandemic adversely affected the Argentina tire market. Lockdowns, supply chain interruptions, and reduced consumer spending led to a temporary decline in tire demand. Vehicle production and sales were severely affected, resulting in decreased OEM and replacement tire sales. The automotive industry struggled with production halts and reduced capacity. However, the market displayed resilience, adapting to the "new normal" with a focus on safety and sustainability. As economic activities gradually resumed, there was a rebound in tire sales, especially for passenger cars and commercial vehicles. The pandemic underscored the importance of robust supply chains and the need for adaptable market strategies.

Prolonging Wars and Escalating Geopolitical Tensions in Oil Rich Regions

The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war.

Also, the war in Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, The World Bank anticipates that the crude oil prices would spike to a range of USD 140-157 a barrel in the long term, if the war continues to escalate and spreads to other regions. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Argentina tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.

Argentina Tire Market

Segmental Coverage

Argentina Tire Market – By Vehicle Type

By vehicle type, the Argentina Tire Market is divided into Passenger Cars, Light Commercial Vehicle (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Two-Wheelers, Three-Wheelers, and Off-The-Road (OTR) Vehicles segments. The passenger cars segment holds the highest share in the Argentina tire market by vehicle type. There has been a notable increase in passenger car sales in Argentina, leading to a surge in demand for tires. Also, the expanding automotive industry has led to more car manufacturing, further boosting the need for tires in this segment. As the economy grows and disposable income rises, more consumers are purchasing passenger cars, thus driving the demand for tires. Another driving force is the increasing preference for passenger cars over other vehicle types has contributed to the dominance of this segment in the Argentina tire market.

Argentina Tire Market – By Demand Category

Based on demand category, the Argentina tire market is bifurcated into OEM and Replacement segments. The replacement segment holds a higher share in the Argentina tire market by demand category. This can be primarily due to increasing replacement rates driven by a rising vehicle fleet. As the number of vehicles on the road grows, there is a corresponding need for tire replacements due to wear and tear. Consumers are replacing their tires more frequently, boosting demand in the replacement category. Also, road conditions and infrastructure development projects contribute to tire wear, further fueling the need for replacements. This sustained demand for tire replacements has resulted in the replacement segment holding a larger share in the Argentina tire market's demand category.

Argentina Tire Market – By Tire Type

Based on tire type, the Argentina tire market is bifurcated into Radial and Bias segments. The radial segment is expected to hold a higher share in the Argentina tire market by tire type during the forecast period. This trend is driven by multiple factors, including automakers' increasing preference for radial tires due to their advantages in fuel efficiency and durability compared to bias-ply tires. Notably, the market witnesses growing demand for eco-friendly and fuel-efficient "green tires" that emit fewer greenhouse gases. The rising sales of commercial vehicles, higher replacement rates, and the growing focus on sustainability further fuel the demand for radial tires. The competitive market for electric vehicle tires fosters innovation and a variety of product options. Also, online sales, catalyzed by the COVID-19 pandemic, offer consumers a wider range of tire brands, competitive pricing, and convenience.

Competitive Landscape

Major players operating in the Argentina tire market include FATE S.A.I.C.I, Pirelli Neumaticos S.A.I.C, Michelin Argentina Co. Ltd, Bridgestone Argentina S.A.I.C., Neumaticos Goodyear SRL, Rodaco Argentina S.A., and Hankook. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2023 - CNH Industrial and CEAT Specialty, a division of CEAT Tyres, signed an agreement to provide agricultural radial tires for CNH machinery manufactured in Brazil and Argentina. CNH Industrial will use CEAT's Farmax radial tires in their Case IH and New Holland tractors. Also, the Michelin Group introduced new medium compound front tires for Moto GP Argentina.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicle (LCVs)

• Medium And Heavy Commercial Vehicles (M&HCVs)

• Off The Road (OTR) Vehicles

• Three-Wheelers

• Two-Wheelers

By Demand Category

• OEM

• Replacement

By Tire Type

• Radial

• Bias

1. Research Framework
   1. Research Objective
   2. Tire Type Overview
   3. Market Segmentation
2. Executive Summary
3.  Argentina Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing vehicle production
         2. Expanding automobile industry
      2. Restraints
         1. High cost of living
         2. Competition from foreign tire manufacturers
      3. Opportunities
         1. Growing demand for tires from developing countries
         2. Growing demand for replacement tires
      4. Challenges
         1. Inflation
         2. Supply chain disruptions
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Argentina Tire Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicle (LCVs)
         3. Medium & Heavy Commercial Vehicle (M&HCVs)
         4. Two-Wheelers
         5. Three-Wheelers
         6. Off-The-Road Vehicle (OTR) Vehicles
      2. By Tire Type
         1. Radial
         2. Bias
      3. By Demand Category
         1. OEM
         2. Replacement
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Argentina Tire Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Argentina Tire Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. FATE S.A.I.C.I
   2. Pirelli Neumaticos S.A.I.C
   3. Michelin Argentina Co. Ltd.
   4. Bridgestone Argentina S.A.I.C.
   5. Neumaticos Goodyear SRL
   6. Rodaco Argentina S.A.
   7. Hankook
   8. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.  Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Demand Category
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Argentina Tire Segmentation

Figure 2       Argentina Tire Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Argentina Tire Market Size, By Value (USD Million), 2019–2029

Figure 5       Argentina Tire Market Share, By Vehicle Type, By Value, 2019–2029

Figure 6       Argentina Tire Market Share, By Tire Type, By Value, 2019–2029

Figure 7       Argentina Tire Market Share, By Demand Category, By Value, 2019–2029

Tables

Table 1 Argentina Tire Market Size, By Value (USD Million), 2019–2029

Table 2 Argentina Tire Market Share, By Vehicle Type, By Value, 2019–2029

Table 3 Argentina Tire Market Share, By Tire Type, By Value, 2019–2029

Table 4 Argentina Tire Market Share, By Demand Category, By Value, 2019–2029

Table 5        FATE S.A.I.C.I Company Overview

Table 6        FATE S.A.I.C.I Financial Overview

Table 7        Pirelli Neumaticos S.A.I.C Company Overview

Table 8        Pirelli Neumaticos S.A.I.C Financial Overview

Table 9        Michelin Argentina Co. Ltd. Company Overview

Table 10      Michelin Argentina Co. Ltd. Financial Overview

Table 11      Bridgestone Argentina S.A.I.C. Company Overview

Table 12      Bridgestone Argentina S.A.I.C. Financial Overview

Table 13      Neumaticos Goodyear SRL Company Overview

Table 14      Neumaticos Goodyear SRL Financial Overview

Table 15      Rodaco Argentina S.A. Company Overview

Table 16      Rodaco Argentina S.A. Financial Overview

Table 17      Hankook Company Overview

Table 18      Hankook Financial Overview