Brazil Tyre Market Research Report, 2029

The Brazilian tire market has evolved significantly over the years, driven by the country's robust automotive industry and increasing vehicle ownership. The expansion of Brazil's vehicle population, including passenger cars and commercial vehicles, further fuels this demand, creating a stable market for tire manufacturers and distributors. Historically, Brazil has been a major player in the global automotive sector, ranking as one of the largest vehicle producers in Latin America. The tire market's development is closely linked to the automotive industry's growth, with key manufacturers such as Volkswagen, Fiat, and General Motors establishing significant operations in the country. Government initiatives have also played a crucial role; for instance, the removal of tariffs on tires for cargo transportation has facilitated market expansion. However, challenges persist, particularly related to the fluctuating prices of raw materials like rubber, which can hinder production costs and profitability. The demand for tires in Brazil is not limited to passenger vehicles; it also encompasses specialized tires for agricultural and commercial applications. Given Brazil's status as a leading agricultural exporter, there is a growing need for durable tires designed for off-road vehicles used in farming. This trend is complemented by ongoing infrastructure development projects aimed at improving road networks, which subsequently increases the demand for commercial and heavy-duty tires. According to the research report "Brazil Tyre Market Research Report, 2029," published by Actual Market Research, the Brazil Tyre market is anticipated to grow at more than 7% CAGR from 2024 to 2029. Brazil ranks as the eighth-largest vehicle producer globally, with significant contributions from major automotive players like General Motors, Volkswagen, and Fiat. These companies are investing heavily in local production facilities, thereby enhancing the domestic tire market's capacity and competitiveness. Key players in the Brazilian tire market include multinational giants such as Pirelli Pneus SA, Michelin, Bridgestone Americas Tire Operations, Goodyear Tire & Rubber Company, and Continental AG. These companies dominate the market through extensive product offerings tailored for passenger cars, commercial vehicles, and specialized applications like agricultural machinery. Notably, the aftermarket segment is gaining traction as consumers increasingly prioritize tire replacements due to safety concerns and performance standards mandated by government regulations. This trend is complemented by a growing preference for larger rim sizes, particularly in SUVs, which drives demand for tires sized between 15 to 20 inches. The rise of e-commerce in Brazil is also reshaping the tire distribution landscape. While offline sales channels remain dominant, online sales are expected to grow rapidly as consumers seek convenience and competitive pricing. This shift presents opportunities for both established brands and new entrants to capture market share by enhancing their online presence. The shift towards electric vehicles (EVs) is one such trend; manufacturers are adapting their product lines to accommodate the unique requirements of EVs. This includes developing tires that enhance energy efficiency while maintaining performance standards.

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Passenger Cars dominate the market, accounting for the largest share due to increasing disposable incomes and a growing middle class. The demand for passenger car tires is driven by the rising number of vehicles on the road, as consumers prioritize safety, durability, and fuel efficiency. Innovations in tire technology, such as low rolling resistance designs, are enhancing performance and contributing to the segment's growth. Furthermore, Brazilian consumers are increasingly favoring larger rim sizes, particularly for SUVs, which has led to a surge in demand for tires sized between 15 to 20 inches. In the light commercial vehicle segment, which includes vans and smaller trucks, there is a notable increase in demand driven by e-commerce growth and logistics needs. These vehicles require tires that can withstand heavier loads while providing good traction and durability on varied road conditions. The market for heavy commercial vehicles, such as trucks and buses, is also significant, as these vehicles are essential for freight transport across Brazil's vast geography. Manufacturers are focusing on creating robust tires with enhanced tread designs to improve performance under heavy loads. The two-wheeler segment is experiencing steady growth due to the popularity of motorcycles as a cost-effective mode of transport in urban areas. Demand here is largely influenced by affordability and fuel efficiency. Similarly, the three-wheeler segment caters to both passenger and goods transport needs in many regions, particularly in rural areas where they provide essential mobility solutions. Radial tires are distinguished by their construction, where the cord plies are arranged at a 90-degree angle to the direction of travel. This design allows for greater flexibility in the sidewalls, which enhances handling and ride comfort. Radial tires dominate the Brazilian tire market due to their superior performance characteristics, such as reduced rolling resistance, improved fuel efficiency, and longer tread life. These attributes make radial tires particularly appealing for passenger cars and heavy commercial vehicles, which require durability and efficiency for long-distance travel. Manufacturers are innovating to produce eco-friendly radial tires that utilize sustainable materials and advanced manufacturing processes. For instance, several companies are investing in research to develop tires that minimize environmental impact while maintaining performance standards. Bias ply tires feature layers of fabric laid diagonally across the tire's body, which provides excellent traction at low speeds and stability while driving straight. Although bias ply tires have traditionally been favored for certain applications due to their robustness and ability to withstand rough terrains, their overall market share is declining compared to radial tires. In Brazil, bias ply tires are experiencing a resurgence in demand within niche markets where their unique properties offer advantages over radial designs. For example, agricultural sectors rely on bias ply tires for tractors and other farm equipment due to their ability to provide better grip on soft or uneven surfaces. OEM Tires are the tires that come pre-installed on new vehicles from manufacturers. These tires are specifically selected by automotive manufacturers to meet performance standards that align with the vehicle's design, including factors like ride quality, handling, and fuel efficiency. In Brazil, OEM tires are generally associated with new car sales and are crucial for maintaining the intended driving experience as designed by the vehicle manufacturer. However, this segment has seen slower growth compared to the aftermarket due to the high cost of OEM tires and the increasing prevalence of older vehicles on the road that require replacement rather than new OEM tires. On the other hand, the replacement tire market has emerged as a dominant force in Brazil, overshadowing OEM sales. This segment caters to consumers looking to replace worn-out tires on their vehicles. The demand for replacement tires is driven by several factors, including increased vehicle ownership, heightened awareness of tire safety and maintenance, and the need for regular tire replacements due to wear and tear from Brazil's diverse road conditions. The aftermarket offers a wide range of brands and specifications at various price points, making it accessible for consumers seeking cost-effective solutions. Distribution channels for both segments vary significantly. OEM tires are typically distributed through authorized dealerships and automotive manufacturers' networks, ensuring that consumers receive the exact specifications required for their vehicles. In contrast, replacement tires are available through multiple channels, including authorized dealers, independent tire shops, online platforms, and third-party retailers. This broad accessibility enhances consumer choice and convenience, allowing them to select tires based on performance needs or budget constraints.

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Nikita Jabrela

Business Development Manager

COVID-19 Impact The Covid-19 pandemic affected almost every industry vertical across the globe and the tire market in the region of North America was no exception. The enforcement of lockdowns along with the travel restrictions across countries significantly affect the tire market. The situation of lockdowns caused production in the automobile industry to stop which affected the demand from the OEM sector. On the other hand the market was also observing decline from the replacement sector during the pandemic as the requirement for new tires declined. Key Players Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang Considered in the report • Geography: Brazil • Base Year: 2023 • Historical year: 2018 • Forecasted Year: 2029

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Aspects covered in the report • Market Size by Value (2018-2029F) • Market Size by Volume (2018-2029F) • Market Share by Vehicle Type • Market Share by End Use • Market Share by Design • Market Share by Sales Channel • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.