Tires are something that people may not think about often yet play a significant role in the life of everyday people. This especially applies to people who own automobiles or work within the automobile industry. Seeing as tires are needed to move just about any vehicle, it makes for a lucrative business venture.
10 Things about African Tire Trade that You Didn’t Know
Learning more about tires can also be beneficial if you’re in the transportation business as they’re a commodity that you’ll always need. If you’re contemplating making a living within the African tire industry, here are 10 fun facts about the African tire Industry that may interest you.
Fact #1: The African Tire Market is Growing
The African tire market is forecast to grow from $ 5.57 billion in 2017 to $ 7.50 billion by 2023 as a result of the rise in passenger car and commercial vehicle sales.
Fact #2: African Tire Sales are Increasing
Tire sales are likely to be boosted as a result of increasing purchasing power and GDP per capita. In other words, the exponential growth of the middle-class in many African countries is resulting in a demand for automobiles and in turn, creating a growing market for all kinds of tires. This includes anything from passenger car tires, off-road tires, industrial tires, agricultural tires, truck, bus and trailer tires to motorcycle and bicycle tires.
Fact #3: Imports Drive the African Tire Market
The Africa tire market is said to be majorly import driven, and as a result, expanding distributor and dealer networks are emerging and boosting tire sales.
Fact #4: African Tires are Recycled
There are different ways that tires are recycled now that they’re no longer seen as a waste disposal problem. While some can be melted and the rubber used for asphalt, others can be shredded.
Fact #5: The Chinese Industry is Driving the African Market
The growing demand for Chinese tires and the growth of the used car market are expected to drive demand for tires in Africa during 2012-2022.
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Fact #6: African Tires Have 2 Speed Ratings
Tires are said to have two-speed ratings which are indicated in Z and Y. The first to be introduced was Z and the speed rating was around 149 mph. Following shortly after, Y was introduced in order to create a rating for tires that have high performance.
Fact #7: African Tires are Giving their European Counterparts a Run for Their Money
In recent times, European tire firms are beginning to lose ground to Chinese and other Asian brands in many emerging markets such as Africa. This is because many developing countries are price-sensitive markets and prefer to import low-priced Chinese tires as opposed to expensive European and American brands. As a result, China has emerged as a leading exporter of tires to many African countries.
Fact #8: East African Brands have a Corner on the African Tire Market
In East Africa, it may be interesting to know that American and European tire brands are said to have been knocked out of competition. For example, in Kenya, American and European tire brands have to compete with a number of low-priced imports from China, Indonesia, Thailand and India.
Fact #9: South Africa Tops the African Tire Export Industry
South Africa, Algeria, Egypt, Nigeria and Libya are apparently the top 5 tire markets in Africa with a cumulative market share of over 70% of the Africa tire market in 2016.
Fact #10: Replacement Tires are in High Demand
Replacement tires for vehicles accounted for the majority share in the African tire market over the past few years. The same trend is anticipated to continue in proceeding years.
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