Passenger Car Tires Market in Brazil 2015-2019
About Passenger Car Tire Market in Brazil
With Brazil experiencing a multiyear drought in São Paulo state (São Paulo accounts for 40% of Brazil’s industrial production), a sluggish economy, and a major corruption scandal, investors have been pessimistic about the country’s economy. Furthermore, between 2013 and 2014, the net profits of small businesses in Brazil decreased due to high tax, high inflation, and interest rates, which led to high costs. The slowdown experienced by the economy has led to a fall in consumer confidence and GDP is expected to contract 1.08% in 2015 and grow by just about 1.1% in 2016.
The above factors had a huge impact on the automobile industry in Brazil. While the tire market in general has witnessed growth in the country, it was affected during the period of reduced economic activity, during 2013 and 2014, as total vehicle production and sales declined. On a broader level, passenger car registrations in Brazil dropped. In the near future, with relative stability in total automobiles in use and new automobile sales in the country, the tires market is expected to grow.
Technavio's analysts forecast the passenger car tire market in Brazil to grow at a CAGR of 3.06% over the period 2014-2019.
Covered in this Report
This report covers the present scenario and the outlook of the passenger car tires market in Brazil for 2015–2019. The market forecast and analysis have been provided in terms of volume.
The market includes the following segments:
Technavio Announces the Publication of its Research Report – Passenger Car Tires Market in Brazil 2015-2019
Technavio recognizes the following companies as the key players in the Passenger Car Tires Market in Brazil: Apollo Vredestein, Bridgestone Europe, BRISA Bridgestone Sabanci Tire Manufacturing and Trading, Continental, Cooper Tire & Rubber, Debica, Deldo Autobanden, Falken Tyre Europe, FULDA Europe, Giti Tires, Goodyear Dunlop Tyres Europe, Goodyear Dunlop Tyres UK, Hwa Fong Rubber Industries, Interstate Tire & Rubber, Kumho Tire, Marangoni, Maxxis International, Michelin, Nankang Rubber Tire, Nexen Tire, Nokian Tyres, Pirelli Tyre, ROSAVA Tires, Sailun Group, Sumitomo Rubber Industries, Toyo Tire & Rubber, Triangle Group, Vee Rubber Group and Yokohama Rubber
Commenting on the report, an analyst from Technavio’s team said: “Brazil, in terms of internet usage, is the seventh largest country in the world, and according to a recent study, the internet penetration was 43% in urban zones and 10% in rural areas. A new trend of buying tires online has evolved globally and this trend is catching up in Brazil as well. The trend of buying tires online has increased over the past few years. Young internet users are more receptive to buying tires online. Consumers are impressed by the benefits associated with buying tires online, such as saving both time and cost, being able to compare prices, and finding reasonably priced tires. The large variety and the current availability of tires, multiple payment options, and quick delivery to the required location are some of the other benefits that are associated with online purchase. This increased connectivity, along with the awareness and willingness of consumers to purchase tires online, is expected to have a positive impact on the sales of tires.”
According to the report, the demand from the replacement tire market is influenced by macroeconomic indicators such as economic growth and the purchasing power of the consumer. Affected by the economic instability since 2012, passenger car sales in Brazil, during 2012-2014, went down by 12.18%. This created serious repercussions for the OEM tire market; however, the replacement tire market was relatively stable. The economic conditions are expected to stabilize by 2016-2017 and passenger car sales are expected to grow (in 2017-2018) and contribute to the growth of the OEM tire market. In addition, an increase in the number of on-road passenger cars directly influences the demand for replacement tires for passenger cars.
Further, the report states that imposed industrial products tax has affected the imported and domestic car Market.
Alliance Tire Group, Apollo Tyres, Bridgestone Americas Tire Operations, Ceat, Continental Tire the Americas, Giti Tire (USA), Goodyear Tire & Rubber, Hankook Tire, Maggion, Marangoni, Maxxis International, Michelin, Nexen Tire, Nitto Tire USA, Pirelli Tyre, Toyo Tire & Rubber, Yokohama Rubber
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