MarkNtel Advisors South Africa Tire Industry Analysis 2019

South Africa Tire Market
Analysis, 2019
Copyright 2019. Reproduction is forbidden unless authorized. All rights reserved. 1
3 Industry Segmentation & Scope of Work
Copyright 2019. Reproduction is forbidden unless authorized. All rights reserved.

Industry Segmentation
South Africa Tire Industry
By Type of OEM Vs By Sales

Radial vs Bias By Season By Region By Rim Size
Vehicle Replacement Channel
1. Passenger Car 1. OEM 1. Radial 1. All Season 1. Online 1. Central 1. Upto 12”
2. Two Wheeler 2. Replacement 2. Bias 2. Summer 2. Dealers or 2. North 2. 12” to 15”
3. Light Exclusive 3. West 3. 15.1” to 20”
Commercial Outlets, etc. 4. Eastern Cape 4. 20" to 25“
Vehicle (LCV) 5. Above 25"
4. Medium & High
Commercial
Vehicle
(MHCV)
5. Off The Road
Vehicle (OTR)
6. 3 Wheelers

Historical Year: 2014
Base Year: 2018
Table of Content (1/7) Forecast Year: 2024
Table of Content
1. Research Methodology
1.1. Research Process
1.2. Product/Service Overview
1.3. Industry Segmentation
1.4. Assumptions
2. Glossary
3. Executive Summary
4. What the Experts Say?
5. South Africa Tire Manufacturing Ecosystem
6. South Africa Tire Industry Analysis, 2014-2024
6.1. Industry Potential
6.1.1. Industry Revenues
6.1.2. Units Sold
6.2. Industry Segmentation & Revenue Shares
6.2.1. By Type of Vehicle (Passenger Car, LCV, Bus, M&HCV, OTR, Two-wheeler)
6.2.2. OEM Vs Replacement
6.2.3. By Radial Vs Bias
6.2.4. By Region (East, Central, North, South, West)
6.2.5. By Season
6.2.6. By Sales Channel (Direct, Authorized Distributors, Online, Others)

Base Year: 2018
Table of Content
6.2.7. By Tire Rim Size
6.2.8. By Leading Companies
6.2.8.1. Industry Share & Units Sold
6.2.8.2. Strategic Factorial Indexing
6.2.8.3. Competitors Alignment in MarkNtel Competition Quadrant
6.3. South Africa Tire Industry Attractiveness Indexing
6.3.1. By Type of Vehicle
6.3.2. By Season
6.3.3. By Sales Channel
7. South Africa Passenger Car Tire Industry Analysis, 2014-2024
7.1.2. Units Sold
7.2.1. By Type of Vehicle (Sedan, SUV, Hatchbacks & Others)
7.2.4. By Region
7.2.5. By Season

Base Year: 2018
Table of Content
7.3. Passenger Car Tire Industry Attractiveness Indexing
7.3.2. By Season
8. South Africa Light Commercial Vehicle Tire Industry Analysis, 2014-2024
8.1.2. Units Sold
8.2.1. By Type of Vehicle (Light Trucks, Light Buses, Pick-Up Trucks & Vans)
8.2.4. By Region
8.2.5. By Season
8.3. Light Commercial Vehicle Tire Industry Attractiveness Indexing

Base Year: 2018
Table of Content
8.3.2. By Season
9. South Africa Medium & Heavy Commercial Vehicle Tire Industry Analysis, 2014-2024
9.1.2. Units Sold
9.2.1. By Type of Vehicle (Trucks & Bus )
9.2.4. By Region
9.2.5. By Season
9.3. Medium & Heavy Commercial Vehicle Tire Industry Attractiveness Indexing
9.3.2. By Season

Base Year: 2018
Table of Content
10. South Africa Two-Wheeler Tire Industry Analysis, 2014-2024
10.1.2. Units Sold
10.2.1. By Type of Vehicle (Motorcycles, Scooters & Mopeds)
10.2.4. By Region
10.2.5. By Season
10.3. Two-Wheeler Tire Industry Attractiveness Indexing
10.3.2. By Season
11. South Africa OTR Vehicle Tire Industry Analysis, 2014-2024

Base Year: 2018
Table of Content
11.1.2. Units Sold
11.2.1. By Type of Vehicle (Earth Moving Equipment, Construction & Agricultural Vehicle, Material Handling Equipment)
11.2.4. By Region
11.2.5. By Season
11.3. OTR Vehicle Tire Industry Attractiveness Indexing
11.3.2. By Season
12. South Africa Tire Industry Value Chain & Margin Analysis
13. South Africa Tire Industry Regulations, Policies, Product Benchmarks
14. South Africa Tire Industry Trends & Insights
15. South Africa Tire Industry Dynamics
15.1. Growth Drivers
15.2. Challenges

Base Year: 2018
Table of Content
15.3. Impact Analysis
16. South Africa Tire Industry White Spaces & Hotspots
17. South Africa Tire Industry Porters Five Forces Analysis
18. South Africa Tire Imports, Exports Statistics
19. South Africa Tire Industry Competition Outlook
19.1. Competition Matrix (Sales Strategies, Best Selling Products, Discounts, Target Customers, etc.)
19.2. Company Profiles
20. About Us & Contact Details

5 Executive Summary

Executive Summary
Overall Tire Sales
xx
Million tires
sold in
2018
2014 2018 2024F
Revenue (USD Million) Units Sold (Thousands) PC LCV MHCV OTR 2W
Market Structure, 2018 Competition Share, 2018 Expert’s Outlook on Industry Growth Rate, 2019-24
X% X% X% X% X% X% X%
Experts Experts Experts
Imports Local Manufacturing Top 4 players Other Companies 2% to 3% ~2% Less than 2%
Domestic Manufacturing Boosting the Tire sales Currency Fluctuation Impacting Tire Industry
01 The South African Automotive Masterplan to 2035 aims at

boosting the domestic auto production. The country is
02 During 2014-19, South African Rand has witnessed a
depreciation of around 30%. As a result, the average
targeting market share of 1% in global auto production by price of tires in SA registered an increase
2035

7 South Africa Tire Manufacturing
Ecosystem

South Africa Tire Manufacturing Ecosystem
Location of Area Covered by Annual

Tire Type of Tires OEM Partners in
Sr. No. Manufacturin Manufacturing Production
Manufacturer Manufactured South Africa
g Facility Facility (m2) (Units)
X X X X
1. Bridgestone X X 2,007,500 X
The company also operates around X X factories in South Africa. The employee headcount in all the manufacturing units
was around X in 2019 (as of Feb 2019)
2. Goodyear X X X X X
3. Sumitomo X X X X X
4. Continental X X X X X
Source: Primary Surveys, Company Financial Releases, MarkNtel Advisors

8 South Africa Tire Industry Outlook, 2014-
2024F

South Africa Tire Industry Outlook, By Revenue & Units Sold (1/3)
Figure 1: South Africa Tire Industry, By Revenues (USD Million), By Units Sold (Million Units), 2014-2018
Revenue: X.X% Revenue: X.X%

Units Sold: X.X% Units Sold: X.X%
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Revenue (USD Million) Units Sold (Thousands)
Source: MarkNtel Advisors
E-Expected, F -Forecast
 South Africa is the most politically stable and business-friendly country in the African The prices of tires are registering an upward trend in
continent. The growing purchasing power of the consumers has been contributing to an South Africa on account of the rising cost of raw
overall increase in vehicle sales. Moreover, growth in business hubs, industries, mining material including natural rubber, carbon black, steel
cord and nylon cord, etc.
and exploration activities, etc., are further backing an overall increase in vehicle sales.
The constant rise in the number of vehicle fleet size on the road has been acting as a
The price of crude oil – the most important basic
major growth driver for the tires. Moreover, the rising discretionary income of the
building block for synthetic-rubber input materials
customers, rising availability of low-cost tires for replacement, the introduction of low-
such as butadiene and styrene and also for carbon
end vehicles boosting the motorization rate, etc. are few of the major growth black and various other chemicals has been very
proponents for the tire industry in South Africa. volatile in the impacting the final price of tires

South Africa Tire Industry Outlook, By Type of Vehicle (1/5)
Figure 2: South Africa Tire Industry Share, By Type of Vehicle. By Units Sold (Percentage)
2 Wheeler 2.43% 2 Wheeler 2 Wheeler
OTR 4.88% OTR OTR
MHCV 9.84% 2024F

2014 MHCV 2018 MHCV
LCV 20.23%
LCV LCV
Passenger Car 62.61%

Passenger Car Passenger Car
Axis Title
 South Africa (SA) boasts of the robust automobile industry in the African continent, with increasing
exports and domestic demand. The country has designed a master plan for its automotive industry viz.
1%
The South African Automotive Masterplan to 2035. As apart of the plan, the country is planning to market share (target) of SA in
transform itself into a manufacturing hub for automobiles, not only for the African continent but also for global vehicle production by
Latin America, the Middle East, and the Asia Pacific. 2035
 The plan is anticipated to come into effect in 2021. The automotive masterplan includes growing vehicle
production in South Africa from 0.68% to 1% which is estimated to increase the domestic vehicle
60%
production to 1.5 million units by 2035. In 2017, total vehicle production increased from 600,008 units After market parts to be
to 601,178 units (as reported by NAAMSA). manufactured in SA by 2035

South Africa Tire Industry Outlook, By Type of Vehicle (3/5)
Passenger Car:
Figure 3: South Africa Passenger Car Sales (000 Units), 2015-2019E
 The automobile industry is the largest manufacturing segment
412.48
that contributed to around 30% of the country’s GDP in 2018.
 The country is a manufacturing base for several global giants

such as Toyota, VW, Nissan, Hyundai, Renault, BMW, Mercedes, 368.11 365.25 368.00
361.26
etc. As of March 2019, around 53 car brands were offering
more than 3,200 models. In 2018, the country manufactured
around 321,097 passenger cars. Out of these, around 68% of
them were exported to numerous geographies. 2015 2016 2017 2018 2019E
Source: NAAMSA
 Thereby, inducing the demand for tires from OEMs. With the growth in licensed vehicles on the road, the
The strategic
demand for replacement car tires is also surging. In December 2018, the total registered cars on South
location of the
African roads exceeded 7 million units mark, registering a CAGR of around 2% during 2014-18. All these
country and
factors are contributing to an increase in the demand for car tires. Therefore, the industry share of burgeoning middle
passenger car tires is projected to grow during the forecast period. class provides it an
advantage to act as
Light Commercial Vehicle an export base for
 Light commercial vehicles are majorly used in the logistics industry of South Africa for inter-city or intra- auto manufacturers
city transportation. The growth in logistics, food, and beverages, and the e-commerce industry are the targeting Asia,
major end users of the light commercial vehicle. Light trucks are the preferred mode of transportation of Middle East, and
perishable products and e-commerce vendors. There are numerous modern logistics parks across South Latin America
Africa, and new developments continue to add to the country’s stock. markets.
South Africa Tire Industry Outlook, By OEM Vs Replacement (1/2)
Figure 6: South Africa Tire Industry Share, By OEM Vs Replacement. By Units Sold (Percentage)
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
OEM Replacement
 As of December 2018, there were around 12.46 million vehicles registered in the country. In the same According to the
year, the annual auto production of the country stood at around 0.6 million. Therefore, the country’s International
tire industry is dominated by the replacement of tires. The trend is expected to gain a greater foothold Organization of Motor
during the forecast period as vehicle sales in the domestic market is exhibiting a rise. The Government Vehicle Manufacturers,
the motorization rate of
has envisioned a long term strategic plan to boost auto manufacturing by 2035. However, the plan is
the country was around
likely to have an infinitesimal impact on altering the demand dynamics i.e. OEM or replacement. 22% in 2014. This has
 The replacement demand for tires has been outpacing the OEM due to a vast customer base, with
improved marginally
touching around 24% in
rising vehicle ownership rates. Therefore, with this improving vehicle population, the demand for
2018.
replacement tires is expected to outperform OEM during the forecast period as well.

South Africa Tire Industry Outlook, By Radial Vs Bias (1/2)
Figure 7: South Africa Tire Industry Share, By Radial Vs Bias. By Units Sold (Percentage)
76.51%
22.90%
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Radial Bias Source: MarkNtel Advisors
 In 2018, the South African tire industry is governed by the radial tires. The major factors that can be attributed to such large share in the
overall market are narrowing the gap between the prices of both radial and bias tires, the growing presence of Chinese manufacturers,
rising demand for better performance and durability.
Sr. No Type of Vehicle Radial Tire Penetration
 The presence of Chinese players has been playing a transformational role
1 Passenger Car X%
in the adoption of low-cost radial tires in passenger car tires and light
2 LCV X%
commercial vehicles. However, the adoption of radial tires remained
slower in MHCV and OTR segment. Due to improved sidewalls, the bias 3 MHCV X%
tires still command considerable share in the OTR segment of the 4 Two Wheeler X%
country. However, the trend is set to reverse during the forecast period. 5 OTR X%

South Africa Tire Industry Outlook, By Region (1/1)
Central North
 2014: X.X%  2014: X.X%

 2018: X.X%  2018: X.X%
 2024: X.X%  2024: X.X%
West Eastern Cape
 2014: X.X%  2014: X.X%

 2018: X.X%  2018: X.X%
 2024: X.X%  2024: X.X%

South Africa Tire Industry Outlook, By Season (1/2)
Figure 8: South Africa Tire Industry Share, By Season. By Units Sold (Percentage)
97.48%
1.93%
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
All Season Summer
 The South African tire industry is driven by “All-Season tires”. Considerable difference in the prices of all Season and summer tires
coupled with low awareness among the vehicle owners has been acting as the major growth detriment for the growth of Summer tires.
No major change in the sales trend is expected during the forecast period in the price conscious tire market of South Africa. The unit
sales of Summer tires are projected to grow to a feeble 3.30% by 2024.

South Africa Tire Industry Outlook, By Sales Channel (1/2)
Figure 9: South Africa Tire Industry Share, By Sales Channel. By Units Sold (Percentage)
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Online Dealers/Distributors/Exclusive Outlets

 The e-commerce industry of South Africa has been registering an exponential pace.
In 2019, the online sales of products are expected to exceed USD3 bn. However, the XXX+
online sales of the tires in South Africa are in its embryonic stage in 2019. Despite a
strengthening e-commerce industry, dealers and distributors remain the most dealers, distributors and retailers outlets
preferred medium for the purchase of tires. providing tires in South Africa. While the
handful of e-commerce players such as
 As the major market is captured by the Chinese manufacturers in 2019, the online
presence of these tire suppliers remains negligible. Moreover, the customers prefer Tyres and More, Tyre City, etc. are offering
the purchase of tires by evaluating the options with touch and feel in sales outlets. tires through an online medium in 2019.

South Africa Tire Industry Outlook, By Rim Size
Figure 10: South Africa Tire Industry Share, By Rim Size. By Units Sold (Percentage)
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Upto 12 " 12" to 15" 15.1" to 20" 20" to 25" Above 25" Source: MarkNtel Advisors
*Excludes 2-wheeler tires
Table 1: South Africa Tire Industry Share, By Rim Size. By Units Sold (Million Units)
Rim Size 2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Upto 12 " X X X X X X X X X X X
12" to 15" X X X X X X X X X X X
15.1" to 20" X X X X X X X X X X X
20" to 25" X X X X X X X X X X X
Above 25" X X X X X X X X X X X

South Africa Tire Industry Outlook, By Company (1/1)
Table 2: South Africa Tire Industry, By Company, By Units Sold (Thousand Units), By Vehicle Type Category, 2018
Total Tires Passenger Car

Industry LCV Tires MHCV Tires Other Tires Type of Tires
Sold Tires
Sr. No Company Share, By (Thousand (Thousand (Thousand Offered, By
(Thousand (Thousand
Units Sold Units) Units) Units) Price Range
Units) Units)
• Economy
1 Bridgestone X% X X X X X
• High
• Low
2 Sumitomo X% X X X X X
• Economy
• Economy
3 Goodyear X% X X X X X
• High
• Economy
4 Continental X% X X X X X
• High
Hangzhou
• Low
5 Zhongce X% X X X X X
• Economy
Rubber
6 Michelin X% X X X X X • High
7 Triangle X% X X X X X • Low
8 Kumho X% X X X X X • Low
9 Yokohama X% X X X X X • Low
10 Pirelli X% X X X X X • High
Other players operating in the South African Tire Industry include BOTO, DMACK, Maxxis BKT, Achilles, Apollo and numerous other Chinese Brands Source: MarkNtel Advisors

South Africa Tire Industry Attractiveness Indexing
Tire Industry Attractiveness Indexing, By Type of Vehicle (1/3)
Z- Axis- Index Value for the Size of the Sphere
12.00
10.00
Passenger Car
8.00
6.00
4.00
Two Wheelers
2.00
XX
Units Sold (Mn)
XX
XX
0.00
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%
-2.00
CAGR 2018-24 (%)
Reference Point from the Centre of Sphere

9 South Africa Passenger Car Tire Industry
Outlook, 2014-2024F

South Africa Passenger Car Tire Industry Outlook, By Revenue & Units Sold
Figure 11: South Africa Passenger Car Tire Industry, By Revenues (USD Million), By Units Sold (Million Units), 2014-2018
Revenue: X.XX% Revenue: X.XX%

Units Sold: X.XX% Units Sold: X.XX%
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
E-Expected, F -Forecast
 The passenger car tire market of South Africa is registering an uptick on account of rising demand for replacement of tires. The growth in
the imports of used cars, app hailing taxi service providers such as Uber, Bolt, Yookoo Rides, etc. are catalyzing the sales of passenger
car tires. In 2018, the fleet size of Uber exceeded 5,000 passenger cars while Yookoo had a fleet size of 150 cars and growing. Moreover,
the introduction of low-cost car variants catering to the middle-income group of the country has been pushing the sales of car tires in
South Africa. A decline in sales of passenger cars in recent years has resulted in a slowdown in the demand for tires from OEMs.
However, the replacement demand continues to surge at a considerable pace. With the focus on boosting the manufacturing and tapping
the export potential, the Government has been inviting foreign investments, providing sops to the manufacturers to set their bases in the
country. In 2019, Nissan planned to invest around USD213 million to manufacture cars, production 30,000 additional cars per annum.
While BAIC plans to export around 60,000 cars from its manufacturing facility in South Africa.

South Africa Passenger Car Tire Industry Outlook, By Type of Vehicle
Figure 12: South Africa Passenger Car Tire Industry Share, By Type of Vehicle. By Units Sold (Percentage)
2014 2018 2024F
 The sedan is the most preferred passenger car in the country. According to Figure 13: South Africa Passenger Car Sales By Type,
2018
NAAMSA, of the total cars sold in South Africa in 2018, around 72% were
Sedan, followed by SUVs and other compact cars and Bakkies.
 The SUVs are gaining traction among the customers in South Africa on
account of the introduction of several luxury and sporty variants from the 100,208
OEMs such as Toyota, BMW, Audi, Nissan, Mercedes, etc. The traction for SUVs Cars
is growing among the working age group population of between 25 years to
40 years. It is expected that sales will surge during the forecast period.
Eventually, pushing up the share of SUV tires in South Africa Source: News Articles, Primary Surveys

South Africa Passenger Car Tire Industry Outlook, By OEM Vs Replacement
Figure 14: South Africa Passenger Car Tire Industry Share, By OEM Vs Replacement. By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
OEM Replacement
Figure 15: South Africa Registered

 With the growth in manufacturing the country’s export potential has been surging. The car Passenger Cars, 2014-2019 (Million Units)
manufacturers in the country have been constantly increasing their
manufacturing/utilization capacity. Despite a slowdown in demand from the domestic
market, the manufacturers are leveraging the industry potential in Northern Africa, Middle
East, and Latin America. Therefore, the demand for tires from OEMs is exhibiting an increase.
However, the domestic sales when coupled with the imports of cars outpaced the exports
during 2010-18. Thereby, boosting the replacement demand. Moreover, the number of
passenger cars on South African roads has grown at a CAGR of around 1.98% during 2014-19 2014 2015 2016 2017 2018 2019E
Source: NAAMSA, News Articles, OEM Press Releases, Primary Surveys

South Africa Passenger Car Tire Industry Outlook, By OEM Vs Replacement
Table 4: South Africa Passenger Car Industry, By Local Sales, Exports, Production, By Units, 2010-2020F
Total Domestic Total Industry Car Re-exported Total Local Car

Year Local Sales Exports (CBU)
Production Imports imports Market
2010 X X X X X X
2011 X X X X X X
2012 X X X X X X
2013 X X X X X X
2014 X X X X X X
2015 X X X X X X
2016 X X X X X X
2017 X X X X X X
2018 X X X X X X
2019E X X X X X X
2020F X X X X X X
Source: NAAMSA
E-Expected, F-Forecast

South Africa Passenger Car Tire Industry Outlook, By Radial Vs Bias
Figure 16: South Africa Passenger Car Tire Industry Share, By Radial Vs Bias, By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Radial Bias
 With the growth in manufacturing the country’s export potential has been surging. The car
Year Car Manufacturing
manufacturers in the country have been constantly increasing their Facilities Utilization Rate
manufacturing/utilization capacity. Despite slowdown in demand from the domestic
2015 80.40%
market, the manufacturers are leveraging the industry potential in Northern Africa, Middle
East and Latin America. Therefore, the demand for tires from OEMs is exhibiting an 2016 76.00%
increase.
2017 78.00%
 However, the domestic sales when coupled with the imports of cars, outpaced the exports
during 2010-18. Thereby, boosting the replacement demand. Moreover, the number of 2018 82.00%
passenger cars on South African roads has grown at a CAGR of around 1.98% during 2014-19 Source: NAAMSA

South Africa Passenger Car Tire Industry Outlook, By Season
Figure 17: South Africa Passenger Car Tire Industry Share, By Season, By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
All Season Tires Summer Tires
 The summer tires are registering a gradual rise in imports on account of growing demand from high-end luxury car manufacturers and
vehicle owners. However, the demand is anticipated to remain subdued during the forecast period as well. In 2019, it was found that the
price difference between an all-season premium price range tire and the summer tire ranges between USDX to USDX.
 This substantial price gap has been acting as a major hindrance in the penetration of such performance tires in the passenger car
segments of the country. Moreover, the major chunk of vehicle owners prefers low and economy priced tires. Therefore, the traction
towards summer tires is negligible.

South Africa Passenger Car Tire Industry Outlook, By Sales Channel
Figure 18: South Africa Passenger Car Tire Industry Share, By Sales Channel, By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Online Dealers or Exclusive Outlets
Table 5: South Africa Passenger Car Tire Industry, By Units Sold (Mn Units), By Sales Channel (Million Units), 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Online 0.15 0.16 0.17 0.18 0.19 0.23 0.28 0.33 0.38 0.44 0.49
Dealers or
Exclusive 7.77 8.06 8.30 8.51 8.66 8.80 8.92 9.04 9.19 9.27 9.39
Outlets

South Africa Passenger Car Tire Industry Outlook, By Region
Central North
 2014: X.X%  2014: X.X%

 2018: X.X%  2018: X.X%
 2024: X.X%  2024: X.X%
West Eastern Cape
 2014: X.X%  2014: X.X%

 2018: X.X%  2018: X.X%
 2024: X.X%  2024: X.X%

South Africa Passenger Car Tire Industry Outlook, By Price Category
Figure 19: South Africa Passenger Car Tire Industry Share, By Units Sold, By Price Category Size, 2018, 2024F
Premium
Budget
2014 2018 2024F
Economy
Table 6: South Africa Passenger Car Tire Industry, By Units Sold (Mn Units), By Price Category Size, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Budget X X X X X X X X X X X
Economy X X X X X X X X X X X
Premium X X X X X X X X X X X

South Africa Passenger Car Tire Industry Outlook, By Rim Size
Figure 20: South Africa Passenger Car Tire Industry Share, By Rim Size. By Units Sold (Percentage)
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Upto 12 " 12.1" to 15" 15.1" to 17" Above 17" Source: MarkNtel Advisors
Table 7: South Africa Passenger Car Tire Industry Share, By Rim Size. By Units Sold (Million Units)
Rim Size 2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Up to 12 " X X X X X X X X X X X
12.1" to 15" X X X X X X X X X X X
15.1" to 17" X X X X X X X X X X X

South Africa Passenger Car Tire Industry Attractiveness Indexing
Passenger Car Tire Industry Attractiveness Indexing, By Type
Z- Axis- Index Value for the Size of the Sphere
7.00
6.00 Sedan
5.00
4.00
3.00
2.00 SUV
Units Sold (Mn)
1.00 Others
0.00
-1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%
CAGR 2018-24 (%)
Reference Point from the Centre of Sphere

10 South Africa Off The Road (OTR) Tire
Industry Analysis, 2014-2024F

South Africa OTR Tire Industry Outlook, By Revenue & Units Sold (1/2)
Figure 46: South Africa OTR Tire Industry, By Revenues (USD Million), By Units Sold (Thousand Units), 2014-2018
Revenue: X.34% Revenue: X.97%

Units Sold: X.14% Units Sold: X.20%
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
 South Africa features among the largest mineral producers across the globe. In 2019, the country has the world’s biggest reserves of
platinum and manganese, and with large deposits of gold, iron ore, coal, and chrome. For past six, the sales of minerals mined in South
Africa grew at a CAGR of around 5.3%. These developments are anticipated to act as a major growth driver for OTR tires.
 The country plans to utilize its 18 bn tons of coal reserves, 6,323 tons of platinum, 5.5 tons of USD92 billion
chromite, 3,611 tons of palladium reserves for the economic development. Therefore, the Planned investment of Government for
demand for OTR vehicles such as excavators, graders, loaders, etc. has been consistent. mega infrastrtucre development in
Moreover, the country is undergoing an infrastructure modernization and transformation. Gauteng.

South Africa OTR Tire Industry Outlook, By Type of Vehicle (1/3)
Figure 47: South Africa OTR Tire Industry Share, By Type of Vehicle. By Units Sold (Percentage)
Material Handling
Construction &
Agricultural
2014 2018 2024F
Earth Moving
 Earth Moving Equipment (Excavator, Grader, Loader, Bull Dozer, Trenchers, Road roller) tires formed a major share due to the
greater application of these equipment. In 2018, around 65% of the earthmoving equipment tires sales were accommodated by
excavators alone due to its greater application in mining and road & highways construction. According to the Southern African Asset
Management Association, the sales of constriction and agricultural equipment (Tipper & Tractors) declined in South Africa during
2014-17 considerably due to a decline in area under cultivation, which negatively impacted the tire sales also. Although the sales
revived in the first quarter of 2018, however, it further declined in the latter half of 2018. The sales are expected to follow the same
trend during the forecast period as well. Limited application of material handling equipment (Forklifts, Cranes) and low wear and tear
are expected to contribute to the minuscule demand for material handling equipment tires in South Africa.

South Africa OTR Tire Industry Outlook, By OEM Vs Replacement
Figure 48: South Africa OTR Tire Industry Share, By OEM Vs Replacement. By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
OEM Replacement
 South Africa does not have the manufacturing or assembling base for OTR vehicles, apart from tractors, tippers, etc. Majority of the
country’s demand for OTR vehicle is fulfilled by the imports from China, Europe, Japan, and the United States. Therefore, OEM demand
for OTR tires is negligible and is expected to remain so during the forecast period as well as no leading manufacturers has announced
its plans to set up a manufacturing base for such equipment.
 Mahindra and FAW trucks are the only local manufacturer of OTR vehicle in the country (as of March 2019). Mahindra has set up a
tractor assembling unit, while the FAW Group is manufacturing Tippers in its Coega plant. However, the company also imports tractors
and Tippers to meet its requirements.

South Africa OTR Tire Industry Outlook, By Radial Vs Bias
Figure 49: South Africa OTR Tire Industry Share, By Radial Vs Bias, By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Radial Bias
Table 24: South Africa Two Wheeler Tire Industry, By Radial Vs Bias (Million Units), 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Radial X X X X X X X X X X X
Bias X X X X X X X X X X X

South Africa OTR Tire Industry Outlook, By Season
Figure 50: South Africa OTR Tire Industry Share, By Season, By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
All Season Tires Summer Tires
Table 25: South Africa Two Wheeler Tire Industry, , By Season (Million Units), 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
All Season X X X X X X X X X X X
Summer X X X X X X X X X X X

South Africa OTR Tire Industry Outlook, By Sales Channel
Figure 51: South Africa OTR Tire Industry Share, By Sales Channel, By Units Sold, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Online Dealers or Exclusive Outlets
Table 26: South Africa Two Wheeler Tire Industry, , By Sales Channel (Million Units), 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Online X X X X X X X X X X X
Dealers or
Exclusive X X X X X X X X X X X
Outlets

South Africa OTR Tire Industry Outlook, By Region
Central North
 2014: X.X%  2014: X.X%

 2018: X.X%  2018: X.X%
 2024: X.X%  2024: X.X%
West Eastern Cape
 2014: X.X%  2014: X.08%

 2018: X.X%  2018: X.75%
 2024: X.X%  2024: X.76%

South Africa OTR Tire Industry Outlook, By Price Category
Figure 52: South Africa OTR Tire Industry Share, By Units Sold, By Price Category Size, 2018, 2024F
Premium
Budget
2014 2018 2024F
Economy
Table 27: South Africa OTR Tire Industry, By Units Sold (Mn Units), By Price Category Size, 2014-2024F
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Budget X X X X X X X X X X X
Economy X X X X X X X X X X X
Premium X X X X X X X X X X X

South Africa OTR Tire Industry Outlook, By Rim Size
Figure 53: South Africa OTR Tire Industry Share, By Rim Size. By Units Sold (Percentage)
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
20" to 25" 26" to 35" 36" to 48" Above 48"

Table 28: South Africa OTR Tire Industry Share, By Rim Size. By Units Sold (Percentage)
Rim Size 2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
20“ to 25" X X X X X X X X X X X
26“ to 35" X X X X X X X X X X X
36“to 48" X X X X X X X X X X X

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South Africa Tire Market

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South Africa Tire Industry

By Type of OEM Vs By Sales

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Revenue (USD Million) Units Sold (Thousands) PC LCV MHCV OTR 2W

01 The South African Automotive Masterplan to 2035 aims at

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Location of Area Covered by Annual

Source: Primary Surveys, Company Financial Releases, MarkNtel Advisors

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Revenue: X.X% Revenue: X.X%

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2 Wheeler 2.43% 2 Wheeler 2 Wheeler

OTR 4.88% OTR OTR

MHCV 9.84% 2024F

Passenger Car 62.61%

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 The country is a manufacturing base for several global giants

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 2014: X.X%  2014: X.X%

West Eastern Cape

 2014: X.X%  2014: X.X%

Source: MarkNtel Advisors

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Online Dealers/Distributors/Exclusive Outlets

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Total Tires Passenger Car

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Revenue: X.XX% Revenue: X.XX%

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2014 2018 2024F

Source: MarkNtel Advisors

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Figure 15: South Africa Registered

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Total Domestic Total Industry Car Re-exported Total Local Car

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Source: MarkNtel Advisors

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 2014: X.X%  2014: X.X%

West Eastern Cape

 2014: X.X%  2014: X.X%

Source: MarkNtel Advisors

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2014 2018 2024F

Source: MarkNtel Advisors