Tire Industry Analysis, 2019

1Copyright 2019. Reproduction is forbidden unless authorized. All rights reserved.
South Africa Tire Market
Analysis, 2019

Copyright 2019. Reproduction is forbidden unless authorized. All rights reserved.
Industry Segmentation & Scope of Work
3

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

Table of Content (1/7)
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)
Historical Year: 2014
Base Year: 2018
Forecast Year: 2024

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
Forecast Year: 2024

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
Forecast Year: 2024

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
Forecast Year: 2024

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
Forecast Year: 2024

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
Forecast Year: 2024

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
Base Year: 2018
Forecast Year: 2024

Executive Summary
5

Executive Summary
2014 2018 2024F
Overall Tire Sales
Revenue (USD Million) Units Sold (Thousands)
01 02
Domestic Manufacturing Boosting the Tire sales
The South African Automotive Masterplan to 2035 aims at
boosting the domestic auto production. The country is
targeting market share of 1% in global auto production by
2035
Currency Fluctuation Impacting Tire Industry
During 2014-19, South African Rand has witnessed a
depreciation of around 30%. As a result, the average
price of tires in SA registered an increase
PC LCV MHCV OTR 2W
xx
Million tires
sold in
2018
Imports
X%
Local Manufacturing
X%
Top 4 players Other Companies
X% X%
2% to 3% ~2% Less than 2%
X%
Experts
X%
Experts
X%
Experts
Market Structure, 2018 Competition Share, 2018 Expert’s Outlook on Industry Growth Rate, 2019-24

South Africa Tire Manufacturing
Ecosystem7

South Africa Tire Manufacturing Ecosystem
Sr. No.
Tire
Manufacturer
Location of
Manufacturin
g Facility
Area Covered by
Manufacturing
Facility (m2)
Annual
Production
(Units)
Type of Tires
Manufactured
OEM Partners in
South Africa
1. Bridgestone
X X X X
X
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

South Africa Tire Industry Outlook, 2014-
2024F
8

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
Source: MarkNtel Advisors
E-Expected, F -Forecast
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Revenue: X.X%
Units Sold: X.X%
Revenue: X.X%
Units Sold: X.X%
 South Africa is the most politically stable and business-friendly country in the African
continent. The growing purchasing power of the consumers has been contributing to an
overall increase in vehicle sales. Moreover, growth in business hubs, industries, mining
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
major growth driver for the tires. Moreover, the rising discretionary income of the
customers, rising availability of low-cost tires for replacement, the introduction of low-
end vehicles boosting the motorization rate, etc. are few of the major growth
proponents for the tire industry in South Africa.
The prices of tires are registering an upward trend in
South Africa on account of the rising cost of raw
material including natural rubber, carbon black, steel
cord and nylon cord, etc.
The price of crude oil – the most important basic
building block for synthetic-rubber input materials
such as butadiene and styrene and also for carbon
black and various other chemicals has been very
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)
 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.
The South African Automotive Masterplan to 2035. As apart of the plan, the country is planning to
transform itself into a manufacturing hub for automobiles, not only for the African continent but also for
Latin America, the Middle East, and the Asia Pacific.
 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
production to 1.5 million units by 2035. In 2017, total vehicle production increased from 600,008 units
to 601,178 units (as reported by NAAMSA).
62.61%
20.23%
9.84%
4.88%
2.43%
Passenger Car
LCV
MHCV
OTR
2 Wheeler
Axis Title
Passenger Car
LCV
MHCV
OTR
2 Wheeler
Passenger Car
LCV
MHCV
OTR
2 Wheeler
2014 2018 2024F
1%
market share (target) of SA in
global vehicle production by
2035
60%
After market parts to be
manufactured in SA by 2035

South Africa Tire Industry Outlook, By Type of Vehicle (3/5)
Figure 3: South Africa Passenger Car Sales (000 Units), 2015-2019E
Source: NAAMSA
 Thereby, inducing the demand for tires from OEMs. With the growth in licensed vehicles on the road, the
demand for replacement car tires is also surging. In December 2018, the total registered cars on South
African roads exceeded 7 million units mark, registering a CAGR of around 2% during 2014-18. All these
factors are contributing to an increase in the demand for car tires. Therefore, the industry share of
passenger car tires is projected to grow during the forecast period.
Light Commercial Vehicle
 Light commercial vehicles are majorly used in the logistics industry of South Africa for inter-city or intra-
city transportation. The growth in logistics, food, and beverages, and the e-commerce industry are the
major end users of the light commercial vehicle. Light trucks are the preferred mode of transportation of
perishable products and e-commerce vendors. There are numerous modern logistics parks across South
Africa, and new developments continue to add to the country’s stock.
412.48
361.26
368.11 365.25 368.00
2015 2016 2017 2018 2019E
Passenger Car:
 The automobile industry is the largest manufacturing segment
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,
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.
The strategic
location of the
country and
burgeoning middle
class provides it an
advantage to act as
an export base for
auto manufacturers
targeting Asia,
Middle East, and
Latin America
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
year, the annual auto production of the country stood at around 0.6 million. Therefore, the country’s
tire industry is dominated by the replacement of tires. The trend is expected to gain a greater foothold
during the forecast period as vehicle sales in the domestic market is exhibiting a rise. The Government
has envisioned a long term strategic plan to boost auto manufacturing by 2035. However, the plan is
likely to have an infinitesimal impact on altering the demand dynamics i.e. OEM or replacement.
 The replacement demand for tires has been outpacing the OEM due to a vast customer base, with
rising vehicle ownership rates. Therefore, with this improving vehicle population, the demand for
replacement tires is expected to outperform OEM during the forecast period as well.
According to the
International
Organization of Motor
Vehicle Manufacturers,
the motorization rate of
the country was around
22% in 2014. This has
improved marginally
touching around 24% in
2018.

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.
 The presence of Chinese players has been playing a transformational role
in the adoption of low-cost radial tires in passenger car tires and light
commercial vehicles. However, the adoption of radial tires remained
slower in MHCV and OTR segment. Due to improved sidewalls, the bias
tires still command considerable share in the OTR segment of the
country. However, the trend is set to reverse during the forecast period.
Sr. No Type of Vehicle Radial Tire Penetration
1 Passenger Car X%
2 LCV X%
3 MHCV X%
4 Two Wheeler X%
5 OTR X%

South Africa Tire Industry Outlook, By Region (1/1)
Central
 2014: X.X%
 2018: X.X%
 2024: X.X%
North
 2014: X.X%
 2018: X.X%
 2024: X.X%
Eastern Cape
 2014: X.X%
 2018: X.X%
 2024: X.X%
West
 2014: X.X%
 2018: 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
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
preferred medium for the purchase of tires.
 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
the purchase of tires by evaluating the options with touch and feel in sales outlets.
XXX+
dealers, distributors and retailers outlets
providing tires in South Africa. While the
handful of e-commerce players such as
Tyres and More, Tyre City, etc. are offering
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)
*Excludes 2-wheeler tires
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
Table 1: South Africa Tire Industry Share, By Rim Size. By Units Sold (Million Units)
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"

South Africa Tire Industry Outlook, By Company (1/1)
Source: MarkNtel AdvisorsOther players operating in the South African Tire Industry include BOTO, DMACK, Maxxis BKT, Achilles, Apollo and numerous other Chinese Brands
Table 2: South Africa Tire Industry, By Company, By Units Sold (Thousand Units), By Vehicle Type Category, 2018
Sr. No Company
Industry
Share, By
Units Sold
Total Tires
Sold
(Thousand
Units)
Passenger Car
Tires
(Thousand
Units)
LCV Tires
(Thousand
Units)
MHCV Tires
(Thousand
Units)
Other Tires
(Thousand
Units)
Type of Tires
Offered, By
Price Range
1 Bridgestone X% X X X X X
• Economy
• High
2 Sumitomo X% X X X X X
• Low
• Economy
3 Goodyear X% X X X X X
• Economy
• High
4 Continental X% X X X X X
• Economy
• High
5
Hangzhou
Zhongce
Rubber
X% X X X X X
• Low
• Economy
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

South Africa Tire Industry Attractiveness Indexing

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

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

2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 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%
Units Sold: X.XX%
Revenue: X.XX%
Units Sold: X.XX%
 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.
E-Expected, F -Forecast

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
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
OEMs such as Toyota, BMW, Audi, Nissan, Mercedes, etc. The traction for SUVs
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
Figure 13: South Africa Passenger Car Sales By Type,
2018
100,208
Cars
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
 With the growth in manufacturing the country’s export potential has been surging. The car
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
Figure 15: South Africa Registered
Passenger Cars, 2014-2019 (Million Units)
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
OEM Replacement
Source: NAAMSA, News Articles, OEM Press Releases, Primary Surveys

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

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
 With the growth in manufacturing the country’s export potential has been surging. The car
manufacturers in the country have been constantly increasing their
manufacturing/utilization capacity. Despite 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 2020F 2021F 2022F 2023F 2024F
Radial Bias
Year Car Manufacturing
Facilities Utilization Rate
2015 80.40%
2016 76.00%
2017 78.00%
2018 82.00%
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
 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.
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
All Season Tires Summer Tires

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
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
Outlets
7.77 8.06 8.30 8.51 8.66 8.80 8.92 9.04 9.19 9.27 9.39
Table 5: South Africa Passenger Car Tire Industry, By Units Sold (Mn Units), By Sales Channel (Million Units), 2014-2024F

South Africa Passenger Car Tire Industry Outlook, By Region
Central
 2014: X.X%
 2018: X.X%
 2024: X.X%
North
 2014: X.X%
 2018: X.X%
 2024: X.X%
Eastern Cape
 2014: X.X%
 2018: X.X%
 2024: X.X%
West
 2014: X.X%
 2018: 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
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
Table 6: South Africa Passenger Car Tire Industry, By Units Sold (Mn Units), By Price Category Size, 2014-2024F
2014 2018 2024F
Budget
Economy
Premium

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

South Africa Passenger Car Tire Industry Attractiveness Indexing

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

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

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%
Units Sold: X.14%
Revenue: X.97%
Units Sold: X.20%
 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.
USD92 billion
Planned investment of Government for
mega infrastrtucre development in
Gauteng.
 The country plans to utilize its 18 bn tons of coal reserves, 6,323 tons of platinum, 5.5 tons of
chromite, 3,611 tons of palladium reserves for the economic development. Therefore, the
demand for OTR vehicles such as excavators, graders, loaders, etc. has been consistent.
Moreover, the country is undergoing an infrastructure modernization and transformation.
2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F

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)
Earth Moving
Construction &
Agricultural
Material Handling
2014 2018 2024F
 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.

2014 2015 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2024F
Radial Bias
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
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
Outlets
X X X X X X X X X X X

South Africa OTR Tire Industry Outlook, By Region
Central
 2014: X.X%
 2018: X.X%
 2024: X.X%
North
 2014: X.X%
 2018: X.X%
 2024: X.X%
Eastern Cape
 2014: X.08%
 2018: X.75%
 2024: X.76%
West
 2014: X.X%
 2018: X.X%
 2024: X.X%

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
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
Table 27: South Africa OTR Tire Industry, By Units Sold (Mn Units), By Price Category Size, 2014-2024F
2014 2018 2024F
Budget
Economy
Premium

South Africa OTR Tire Industry Outlook, By Rim Size
Figure 53: 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
Table 28: 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"

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information is based on primary interviews and MarkNtel
Advisors takes no responsibility for any incorrect
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be held responsible for any loss or damage caused due to
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Tire Industry Analysis, 2019

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