Report Overview

The growing vehicle ownership, rising industrial sector, and growing government investments in infrastructure are projected to propel the expansion of the Tunisia tire market during the forecast period between 2023 and 2029.

Tunisia Tire Market - Industry Trends & Forecast Report, 2029

Tunisia tire market size was estimated at USD 102.59 million in 2022. During the forecast period between 2023 and 2029, the size of Tunisia tire market is projected to grow at a CAGR of 4.35% reaching a value of USD 132.42 million by 2029. Major growth drivers for the Tunisia tire market include increasing construction activity, growing economic conditions that foster public infrastructure and residential sector development, and rising expectations of expansions in the tourism and manufacturing sectors. The surge in construction activity is expected to boost demand for tires, particularly in heavy machinery and construction equipment applications. The growing economic conditions are likely to drive higher investments and, subsequently, an increased need for tires across various industries. The ongoing growth in public infrastructure and residential sectors will further elevate the demand for tires, while the anticipated expansions in the tourism and manufacturing sectors are poised to lead to a surge in transportation services and vehicle demand, including trucks and buses, ultimately spurring tire sales. Also, the growth in these sectors, particularly in Off-the-Road (OTR) applications, is expected to contribute to the rising demand for Tunisia tire market during the forecast period.

Tunisia Tire Market – Overview

Tunisia tire market refers to the specific and localized market within Tunisia, a North African country, that involves the manufacturing, distribution, sales, and usage of various types of tires, including but not limited to, automobile tires, truck tires, off-road tires, and specialty tires. This market encompasses all aspects of the tire industry, from the production and importation of tires to their sale and installation for use in vehicles, machinery, and other applications across Tunisia. It involves both domestic and international tire manufacturers, distributors, retailers, and consumers, and is influenced by factors such as economic conditions, industrial developments, and demand trends within Tunisia.

Tunisia Tire Market

Growth Drivers

Surging Vehicle Ownership

Growing vehicle ownership in Tunisia is a driving force behind the robust expansion of the Tunisia tire market. As more individuals and businesses acquire vehicles for personal and commercial use, there is a corresponding surge in the demand for various types of tires, including passenger car tires, commercial truck tires, and specialty tires. This rising ownership trend is propelled by improved economic conditions, increased urbanization, and a growing middle-class population. Consequently, the Tunisia Tire Market experiences consistent growth as it caters to the escalating tire replacement and maintenance needs, making it a thriving sector with considerable potential for tire manufacturers and suppliers.

Restraints

Counterfeit Tires

The issue of counterfeit tires significantly hampers the growth of the Tunisia Tire Market. Despite limited research and data, a recent study revealed that the by unregulated operations dominates the market due to the widespread availability of counterfeit tires. The problem is only compounded by the exorbitant 94% tax on tire imports and non-tariff barriers, including complex authorization processes. Moreover, importers are burdened with the task of acquiring a certificate of conformity from the general directorate of manufacturing industries, adding further obstacles to legal imports. In addition, economic protection measures such as quotas and the requirement to source from local manufacturers discourage legal imports and perpetuate the proliferation of counterfeit tires. To foster market growth and address this issue effectively, a reduction in customs duties, elimination of the excise tax, and simplification of import regulations are necessary steps to curb the counterfeit tire trade and encourage legitimate market development.

Impact of COVID-19 on Tunisia Tire Market

COVID-19 pandemic adversely affected the Tunisia tire market. Lockdowns, reduced economic activity, and supply chain disruptions led to a decline in vehicle usage and, subsequently, a decreased demand for tires. The automotive industry experienced production slowdowns and decreased sales, affecting tire manufacturers. Also, consumers postponed non-essential expenses, including tire replacements. Supply chain disruptions impacted the availability of tires, leading to fluctuations in prices. While the market faced challenges, there were also opportunities as the focus on sanitation and safety increased demand for tires in the delivery and logistics sectors. Overall, the Tunisia Tire Market faced both setbacks and opportunities due to the pandemic's effects on the economy and consumer behavior.

Impact of Prolonging Israel-Hamas War on Tunisia Tire Market

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.

Meanwhile in the Eastern Europe, the Russia-Ukraine war has been prolonging for more than a year. Also, the war in West Asia and escalating geopolitical tensions in West Asia and 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, oil prices increased by more than 4.5% or more than USD 4 a barrel in Asia trade on October 09, 2023. Brent crude surged USD 4.18, or about 5%, to USD 88.76 a barrel, meanwhile the US West Texas Intermediate crude was up more than 5% or USD 4.23 at USD 87.02 a barrel. 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 Tunisia 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.

Tunisia Tire Market

Segmental Coverage

Tunisia Tire Market – By Vehicle Type

By vehicle type, the Tunisia tire market is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Off The Road (OTR) Vehicles, and Two Wheelers segments. The passenger cars segment holds the highest share in the Tunisia tire market by vehicle type. It is primarily due to the country's increasing urbanization and a growing middle-class population. With rising disposable income and improved living standards, there is a higher demand for personal vehicles. This trend has boosted the sales of passenger cars, resulting in a substantial need for tires in this category. Moreover, the passenger car segment benefits from regular tire replacement cycles, contributing to a sustained market share. As a result, tire manufacturers and suppliers focus on meeting the demands of this segment, making it the largest and most competitive sector within the Tunisia tire market.

Tunisia Tire Market – By Demand Category

Based on demand category, the Tunisia Tire Market is bifurcated into OEM and Replacement segments. The replacement segment holds a higher share in the Tunisia tire market by demand category. It is primarily because of the country's existing vehicle population, which requires consistent tire replacements due to wear and tear. Vehicle owners in Tunisia often prioritize the maintenance and safety of their cars, leading to regular tire changes. Also, as the infrastructure and road conditions may not always be optimal, tires tend to wear out more quickly. Consequently, the replacement segment enjoys a higher market share, as it caters to the ongoing needs of vehicle owners looking to replace their tires, creating a steady and substantial demand for this category within the Tunisia tire market.

Tunisia Tire Market – By Type of Tires

Based on type of tires, the Tunisia tire market is bifurcated into Radial and Bias segments. The radial tire type is expected to hold a higher share in the Tunisia tire market during the forecast period. Radial tires are known for their superior performance characteristics, including better fuel efficiency, improved handling, and longer lifespan. As consumer awareness and preference for these advantages continue to grow, the demand for radial tires is expected to rise. Additionally, the expansion of the passenger car market and the increasing adoption of radial tires in commercial vehicles contribute to their higher market share. This trend reflects a shift towards more advanced and efficient tire technology in Tunisia, making the radial segment the market leader during the forecast period.

Tunisia Tire Market – By Sales Channel

Based on sales channel, the Tunisia tire market is split into Dealer/Exclusive Outlets and Online segments.

Tunisia Tire Market – By Tube Type

Based on tube type, the Tunisia tire market is bifurcated into Tube and Tubeless segments.

Competitive Landscape

Major players operating in the Tunisia tire market include Michelin, Bridgestone, Goodyear, Continental, Pirelli, Sumitomo Rubber Industries, Hankook Tire, Kumho Tire, Nokian Tyres, Toyo Tire & Rubber, General Tire, and STIP. 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 October 2022 - Firestone, a subsidiary of Bridgestone, announced its partnership with TotalEnergies to open its second tire service center in Soliman Tunis, Tunisia. The initiative is part of TotalEnergies' expansion and customer satisfaction strategy. The center will provide services like oil changes, battery replacements, technical advice, and tire-related services, along with a spare parts counter. Additionally, it offers customer amenities like a café, mini-market, and relaxation area. The collaboration aims to enhance the brand's visibility, customer satisfaction, and tire sales through TotalEnergies' gas station network. Firestone seeks to leverage its engineering expertise to provide quality solutions to the Tunisian market and strengthen its presence.

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