|By PR Newswire||
|February 24, 2014 04:30 AM EST||
BURNABY, British Columbia, February 24, 2014 /PRNewswire/ --
Upcoming Major Events such as FIFA World Cup 2014 and Summer Olympics 2016 to drive Tyre Market in Brazil
Brazil is the world's sixth most populated country and its GDP is currently growing at over 5%. The Brazilian tyre market is the largest and fastest growing tyre market in Latin America. A combination of growing economy and large population base is the key factor expected to boost the auto industry in Brazil. Growing per capita income, coupled with less number of cars per thousand of population, continues to attract the global auto players to Brazil.
Over the next couple of years, Brazil is going to host various mega events like FIFA World cup 2014 and Summer Olympic Games 2016, due to which, the Brazilian government is focusing on increasing its pace of infrastructure development in Brazil. In 2012, the country's government had already announced plans to invest USD18.16 billion for the construction of 7,500 km of roads over the next five years. This has drawn a lot of attention of the major auto companies around the world. As a result, various new entrants are foraying into the Brazilian auto market. During 2012-15, it is forecast that there will be an expansion in the existing production capacity of passenger cars by 1.8 million units in Brazil. As a result, various major tyre manufacturers such as Michelin and Continental Tyres are expanding their tyre manufacturing facilities.
According to recently published report "Brazil Tyre Market Forecast & Opportunities, 2019", the tyre market of Brazil is expected to grow at a CAGR of 8%, in volume terms, during 2014-19. "Favorable government policies for the auto industry in Brazil, coupled with the incoming mega events like FIFA World Cup 2014 and Summer Olympic 2016, are likely to be the major drivers for the country's auto industry, and consequently the tyre industry in Brazil over the next five years", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
Brazilian tyre industry is mostly dominated by the global tyre companies like Pirelli, Michelin, Goodyear, Bridgestone, Continental, etc. However, the tyre industry in Brazil is facing stiff competition due to low cost tyre imports from China and Mercosur countries. In 2012, imports constituted about 40% of the total tyre consumption in the country. Pirelli is the leader in Brazilian tyre industry because of its strong tie-ups with OEMs and its strong sales network.
"Brazil Tyre Market Forecast & Opportunities, 2019" has evaluated the future growth potential for the tyre industry in Brazil, and it provides statistics and information on market structure and consumer behavior trends. The report includes tyre market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends, along with essential drivers, challenges and opportunities in tyre industry in Brazil.
Ken Mathews, Email: [email protected], Telephone: +1-646-360-1656
SOURCE Techsci Research
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