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RIYADH: According to recently released TechSci Research report, “Saudi Arabia Tire Market Forecast & Opportunities, 2021”, Saudi Arabia tire demand is projected to grow at a CAGR of over 11% during 2016 – 2021. Improving macroeconomic scenario, growing vehicle fleet, increasing automobile sales and favourable government policies are some of the major factors anticipated to boost the demand for tires in the country over the next five years. The cumulative sales of passenger cars and commercial vehicles in the country grew at a CAGR of 8.91% during 2011-2015.
On the basis of vehicle type, the tire market in Saudi Arabia has been segmented into five categories, namely, passenger car, medium & heavy commercial vehicle, two-wheelers, off-the-road and light commercial vehicle. In 2015, passenger car segment dominated the country’s tire market. According to the World Bank, the Gross National Income per capita of Saudi Arabia was USD23,550 in 2015. Moreover, the Government of Saudi Arabia banned the import of used vehicles over the age of 5 years in 2009. Backed by increasing purchasing power and favourable government policies, the passenger car segment is anticipated to maintain its dominance in the country’s tire market over the next five years as well.
