Report Overview

Increasing vehicle ownership, rising consumer awareness about tire safety and performance, government regulations promoting tire sustainability, thriving tourism sector leading to higher demand for vehicles and replacement tires, are expected to contribute to the growth of the New Zealand Tire Market during the forecast period between 2023 and 2029.

New Zealand Tire Market - Industry Trends & Forecast Report, 2029

New Zealand tire market size was estimated at USD 746.41 million in 2022. During the forecast period between 2023 and 2029, the size of New Zealand tire market is projected to grow at a CAGR of 4.1% reaching a value of USD 988.86 million by 2029. The growth of the New Zealand tire market is primarily driven by several key factors. Firstly, increasing vehicle ownership and a growing automotive industry contribute to rising tire demand. Secondly, a focus on road safety and the need for high-quality tire boost replacements and upgrades. Thirdly, New Zealand's expanding tourism sector and outdoor recreational activities drive demand for specialized tires, such as those for campervans and off-road vehicles. Lastly, environmental concerns are pushing consumers towards eco-friendly and fuel-efficient tire options, fostering innovation and sustainability in the market. These factors collectively fuel the growth of the New Zealand tire market.

Tire - Overview

A tire is a crucial component of vehicles, serving as the point of contact between the vehicle and the road. It consists of a rubber outer layer, known as the tread, which provides traction and grip. Inside, it has layers of fabric and steel belts for structure and support. Tires come in various sizes and types, tailored for different vehicles and purposes, such as passenger cars, trucks, bicycles, and even aircraft. Proper tire maintenance, including inflation, rotation, and alignment, is essential for safety and optimal performance. Tires play a vital role in vehicle stability, handling, and overall road safety.

New Zealand Tire Market

Growth Drivers

Sustainable Mobility Initiatives

One significant growth driver for the New Zealand tire market is the increasing focus on sustainable mobility initiatives. As New Zealand strives to reduce its carbon footprint and promote eco-friendly transportation options, the demand for tires that are energy-efficient, durable, and environmentally responsible has surged. Consumers are increasingly inclined towards eco-friendly vehicle options such as electric cars and hybrids, which require specialized tires for optimal performance. This shift towards sustainability has led to a growing market for eco-conscious tire manufacturers, offering innovative solutions that align with New Zealand's commitment to a greener future, thus propelling the growth of the tire market in the country.

Restraints

Limited Variety of Tire Brands

One significant restraint in the New Zealand tire market is the limited variety of tire brands available to consumers. The market is predominantly dominated by a few major international tire manufacturers, resulting in a lack of diverse options for customers. This limitation restricts consumer choice, making it challenging to find tires that cater to specific vehicle types, weather conditions, or performance preferences. Further, it can lead to price competition being less robust, potentially causing higher tire prices for consumers due to reduced competitive pressure. Expanding the range of tire brands in the New Zealand market could enhance consumer options and foster healthy competition.

Impact of COVID-19 on New Zealand Tire Market

The COVID-19 pandemic significantly impacted the New Zealand tire market. During lockdowns and restrictions, the demand for tires decreased as people drove less, affecting both the replacement and new tire segments. Import disruptions and supply chain challenges also led to fluctuations in tire availability and pricing. However, as restrictions eased, there was a surge in domestic travel, boosting the need for tires for recreational vehicles and cars. Online tire sales witnessed growth due to changing consumer preferences. Overall, the New Zealand tire market faced initial challenges but displayed resilience and adaptability as the country navigated through the pandemic's evolving conditions.

New Zealand Tire Market

Segmental Coverage

New Zealand Tire Market - By Vehicle Type

By vehicle type, New Zealand tire market is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Medium and Heavy Commercial Vehicles (M&HCVs), Off The Road (OTR) Vehicles, and Two Wheelers segments. The passenger cars segment is the largest, which represents a significant portion of the New Zealand tire market. New Zealand's growing urbanization and the increasing popularity of personal vehicles have contributed to the prominence of this segment. However, it's worth noting that the LCVs and two-wheelers segments also play substantial roles in the overall tire market, driven by business logistics and rising demand for motorcycles and scooters for commuting purposes.

New Zealand Tire Market - By Demand Category

On basis of the demand category, New Zealand tire market is split into OEM and Replacement segments. The replacement segment is a larger demand category in the market. It is indicative of the significant demand for tires among vehicle owners looking to replace worn-out or damaged tires. The replacement segment encompasses a wide range of vehicles, including cars, trucks, and motorcycles, and caters to the ongoing maintenance needs of New Zealand's diverse vehicle fleet. Factors such as road conditions, weather variations, and regular wear and tear contribute to the sustained growth and dominance of the Replacement tire market within New Zealand.

New Zealand Tire Market - By Type of Tire

Based on type of tire, New Zealand tire market is divided into Radial and Bias segments. Radial tires are known for their advanced construction, with cords running perpendicular to the tire's direction of travel, offering improved stability, fuel efficiency, and longer lifespan. On the other hand, bias tires have cords that crisscross diagonally, making them durable and suitable for heavy-duty applications. These segments cater to distinct consumer preferences and specific automotive needs, reflecting the diverse demands within the New Zealand tire market. Understanding these segments is crucial for both consumers and manufacturers in making informed tire choices and product offerings.

New Zealand Tire Market – By Sales Channel

On basis of the sales channel, New Zealand tire market is divided into Dealer/Exclusive Outlets and Online segments. The dealer/exclusive outlets segment comprises brick-and-mortar stores and exclusive tire dealerships, offering a wide range of tire brands and services. On the other hand, the online segment represents the digital landscape of tire sales, encompassing e-commerce platforms and websites where consumers can purchase tires online, often with the convenience of doorstep delivery. As consumers increasingly turn to online shopping for tires, this segment has witnessed significant growth and is poised to continue evolving as technology and e-commerce platforms advance, reshaping the tire market in New Zealand.

New Zealand Tire Market – By Tube Type

On basis of the tube type, New Zealand tire market is split into Tube and Tubeless segments. These segments represent the fundamental distinction in tire design and functionality. Tube tires feature an inner tube, which holds the air pressure and supports the tire structure, while tubeless tires rely on a specialized design and sealant to maintain air pressure without an inner tube. Both segments have their advantages and applications, with tubeless tires generally offering improved safety due to their ability to maintain pressure even when punctured. The market's largest segment may vary over time due to changing consumer preferences and technological advancements.

Competitive Landscape

New Zealand tire market is fiercely competitive, with leading players including Tyres Direct, Caltex, Z Energy, JK Tyres, Tyrepower, Les Schwab, Bridgestone, Michelin, Goodyear, and Dunlop. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In 2021 - Goodyear introduced a new ElectricDrive all-season tire along with two new sizes of the ultra-high-performance (UHP) ElectricDrive GT tire. The product primarily targets crossover utility vehicles & commuter touring sedans, fundamentally equipped with a load index exhibiting higher potential in enduring the heavier weight associated with EVs. Also, the tire demonstrates excellent handling capabilities in different weather scenarios owing to its asymmetric tread pattern. In 2022, the brand also announced its plans to further expand its product portfolio with the initial release of the Goodyear ElectricDrive GT, available in size 255/45R19 104W XL.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Medium & Heavy Commercial Vehicles (M&HCVs)

• Off The Road (OTR) Vehicles

• Two Wheelers

By Demand Category

• OEM

• Replacement

By Type of Tires

• Radial

• Bias

By Sales Channel

• Dealer/Exclusive Outlets

• Online

By Tube Type

• Tube

• Tubeless