Mexico Tire (Tyre) Market Size, Share 2021 - brochure

Mexico Tire Market Forecast & Opportunities , 2021

M a r k e t I n t e l l i g e n c e . C o n s u l t i n g

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P r o d u c t O v e r v i e w

Product Definition

Global Tire supplier Michelin defines Tire as, “A precisely engineered assembly of rubber,chemicals, fabric, and metal, designed to provide traction, cushion road shock andcarry a load under varying conditions.”

Classification According to Vehicle Type

Vehicle Segment Sub-Segment Customer Segment

Passenger Car

SUVs

IndividualsSedans

Hatchback

Light Commercial Vehicle

Pick-Up Trucks

Logistics, SMEsSmall Trucks/Light Trucks

Vans

Medium & Heavy Commercial Vehicle

Heavy Commercial Vehicles

Transport Companies, Logistics, Small Business Entrepreneurs, Government

Medium Commercial Vehicles

Buses

OTR (Off-the-Road) Vehicle N.A.Farmers, Mining companies, Construction

Companies

Two-Wheelers N.A. Individuals

N.A.- Not Available

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T a b l e o f C o n t e n t s

S. No. Contents

1. Research Methodology

2. Product Overview

3. Analyst View

4. Mexico Tire Production Overview

5. Mexico Tire Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value & Volume

5.2. Market Share & Forecast

5.2.1. By Vehicle Type (Passenger Car (PC), LCV, M&HCV, OTR & Two Wheeler)

5.2.2. By Company

5.2.3. By Region

5.2.4. By Demand Category (OEM vs Replacement)

6. Mexico Passenger Car (PC) Tire Market Outlook




6.2.1. By Vehicle Type (Sedans, Hatchbacks & SUV’s)


7. Mexico Light Commercial Vehicles (LCV) Tire Market Outlook



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S. No. Contents


7.2.1. By Vehicle Type (Pickup Trucks, Light/Small Trucks & Vans)


8. Mexico Medium & Heavy Commercial (M&HCV) Tire Market Outlook




8.2.1. By Vehicle Type (HCV, Buses &MCV)


9. Mexico Off-the Road (OTR) Tire Market Outlook



10. Mexico Two-Wheeler (2W) Tire Market Outlook



11. Import-Export Analysis

11.1. Imports

11.2. Exports

12. Market Dynamics

12.1. Drivers

12.2. Challenges

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S. No. Contents

13. Market Trends & Developments

13.1. Growing Market for Green Tires

13.2. Dominance of Foreign Tire Manufacturers

13.3. Increasing Use of Retread Tires

13.4. Expanding Automobile Production

13.5. Increasing Radialisation in Commercial Vehicle Tires

14. Policy & Regulatory Landscape

15. Mexico Economic Profile

16. Competitive Landscape

16.1. Bridgestone de Mexico, SA de CV

16.2. Michelin México Services, S.A. De C.V.

16.3. JK Tornel S.A. de C.V

16.4. Continental Tire de México S.A. de C.V

16.5. Cooper Tire & Rubber Co. de Mexico SA de CV

16.6. Goodyear Servicios Comerciales S. de R.L. de C.V.

16.7. Pirelli Neumáticos de México, S.A. de C.V

16.8. Yokohama Tire Mexico S. de R.L. de C.V

16.9. Sumitomo Tires

16.10. Hankook Tire De Mexico S.A. De C.V

17. Strategic Recommendations

18. About Us & Disclaimer

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R e s e a r c h M e t h o d o l o g y

S. No. Company Name

1 Bridgestone de Mexico S.A. de C.V.

2 Continental AG

3Corporacion de Occidente S.A. de C.V.

(Cooper Tires)

4 JK Tornel S.A. de C.V

5 Pirelli Neumaticos S.A. de C.V.

6 Yokohama Tires

7 Industrias Michelin S.A. de C.V.

S. No. Secondary Source

1

Asociacion Nacional De Distribuidores

De Llantas Y Plantas Renovadoras,

A.C. (ANDELLAC)

2Asociación Mexicana de La Industria

Automotriz (AMIA)

3 Eurostat

4International Organization of Motor

Vehicle Manufacturers (OICA)

5 World Bank

Primary Research - Companies Interviewed Few of Sources of Secondary Research

Baseline Methodology:

For the study, TechSci Research has gathered information through primary research surveys with leadingtire suppliers based in Mexico, and subsequently, verified information from major dealers/distributors ofautomobile tires in the country. We also put through an exhaustive search of credible paid databases suchas Business Week, Factiva, Hoovers, etc., including our internal database. Our team of analysts has thenprudently evaluated all the collected information and presented the same in chronological order to depict ameaningful and clear picture of tire market in Mexico.

While compiling the data, we have also cross checked all the collected information from multiple sourcesand data warehouses, so as to present the most accurate and precise information of the concernedindustry. We use innovative business model that focuses on improving productivity, while ensuringcreation of high-quality reports. The reports are prepared with in-depth primary research, followed byexhaustive secondary research.

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For the preparation of Mexico tire report, bottom up model has been used, which has been later on crossvalidated by using top down approach.

Tire Production

TechSci Research has mapped production capacities of almost all tire manufacturing unit in Mexico. Withthe help of a series of primary research surveys of all the major tire manufacturing companies in Mexico,followed by cross validation through secondary sources such as company annual reports and industryassociations. TechSci Research has been successful in identifying the production capacities of each tireplant as well as their respective plant locations, establishment dates and type of Tires manufactured.

Vehicle Production, Sales & Fleet Size

The basic data points that are needed for the analysis of Mexico tire market are the historical, current andforecast figures for vehicle production, sales and fleet size. Data for fleet size has been extracted throughvarious government sources and credible data portals. TechSci Research has maintained a database forvehicle production, sales and fleet size for each vehicle segment (passenger cars, light commercialvehicle, medium & heavy commercial vehicles, two-wheelers & off-the-road vehicles), which is regularlyupdated through various primary research surveys and secondary sources such as automotiveassociations & government publications.

Tire Demand

OEM Tire Sales

OEM Tire demand has been calculated by multiplying the average number of Tires per vehicle to the totalnumber of vehicle produced. For example, for two-wheeler segment, the average number of Tires areconsidered to be two and for passenger cars, the average number of Tires is five. Further, the averagenumber of Tires for light commercial vehicles (LCVs), medium & heavy commercial vehicles (M&HCVs)and off-the road (OTR) vehicles have been considered as 5, 8 and 4, respectively.

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Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on country’s vehicle fleet size andhistorical vehicle sales. The replacement demand is therefore extracted by multiplying the vehicle fleet withthe replacement tire ratio, which is obtained by conducting a series of surveys with car owners tounderstand the frequency of tire replacement as it varies for different countries depending upon factorssuch as road conditions, climate, economic and regulatory policies applicable in a country. The replacementratio is expressed as a percentage; and is considered to be X% if one tire is replaced per vehicle per year.Example for Passenger Car replacement tire demand calculation:

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphitechnique i.e. multiple rounds of telephonic interviews were conducted with tire companies/dealers inMexico. The information thus gathered through primary interviews was cross-verified through industryexperts and secondary sources such as annual reports and paid databases to generate meaningful results.

Total Tire Market

Tire Trade (Import & Export)

TechSci Research has analyzed tire imports and exports in Mexico. The data has been gathered throughgovernment agencies and credible paid databases. The total tire trade has been segmented in accordancewith below mentioned HS codes:

Passenger

Car Fleet

Size

(Volume)

X

Replacement

Ratio

(in %)

X No. of Tires =Replacement

Tire Demand

X X X% X X = X Tires

OEM Tire Sales +Replacement Tire

Sales= Total Tire Market

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The import and export figures for each HS Code have been depicted in weight (Ton).

Tire Brands Mapping

TechSci Research has mapped all Tire brands that are being sold in Mexico. TechSci Research hasgathered this information through primary and secondary research. The brands that are being sold inMexico are further segmented into “domestically manufactured” and “domestically non-manufactured”categories. The objective behind brand mapping is to understand more about the competition such asmarket share, current targets, future strategy, etc.

Forecast

For forecasting the numbers, we have used Time Series Analysis along with Regression Analysis, followedby judgmental analysis as certain factors would always differ in Mexico such as infrastructure condition,economic outlook, etc.

HS Code Description Tire Type

XXXX Motor Cars Passenger Car Tire

XXXX Bus or Lorries Tires Commercial Vehicle Tire

XXXX Motorcycle Tire Two-Wheeler Tire

XXXX Tire Having a "Herring Bone"

OTR Tire





XXXX Agriculture Tire

XXXX Construction/Industrial Tire

XXXX Construction/Industrial Tire

XXXX Others Other Tires

I n d u s t r y B r i e f

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Tire Market in Mexico to Grow at 10% CAGR till 2021

Booming automotive production, rising vehicle sales, and growth in infrastructure sector to drive tire market in Mexico until 2021

According to TechSci Research report, “Mexico Tire Market Forecast and Opportunities, 2021’’, tire market in Mexico is forecastto grow at a CAGR of more than 10% during 2016-2021. Easy availability of cheap labor, strong domestic automobile demandand favorable tax policies are fueling Mexico’s automotive industry, consequently boosting demand for tires in the country. Thisgrowth in the country’s tire market can be attributed to the planned capacity expansions of major automobile OEMs coupledwith rapidly expanding automobile fleet in the country. Moreover, an overall investment of USD596 billion under the NationalInfrastructure Program by the Federal government, is another factor driving growth in the country’s automobile as well as tiremarket. Mexico houses some of the major global automobile manufacturers such asToyota, Ford, Chrysler, Fiat, General Motors,Mercedes Benz, Kenworth, Freightliner, International, MAN, Volkswagen, Scania, etc., that are involved in producing passengercars, light trucks as well as heavy trucks and buses.

Automobile sales in Mexico exhibited a CAGR of around 9.6% during 2011-2015, with automobile unit sales increasing from 0.94million units in 2011 to 1.35 million units in 2015, resulting in expansion of the country’s automotive fleet from 33.28 millionunits in 2011 to 37.10 million units in 2015. Expanding vehicle fleet size subsequently boosted demand for tires from thereplacement segment as well during 2011-2015. A similar trend is expected to be witnessed during the forecast period as well,both in the OEM as well as replacement segments, consequent to which, Mexico tire market is poised to witness considerablegrowth during 2016-2021. As of 2015, Mexico tire market was dominated by passenger car tire segment, in volume terms,followed by light commercial vehicle tire segment. On account of increase in production and sales of passenger cars, thepassenger car tire segment is expected to remain the largest contributor in the country’s tire market over the next five years.

“With National Infrastructure Program 2014-2018 in place, Mexico is undergoing a major infrastructure transformation, which isleading to developmental activities being undertaken in energy, communication, transport, water, health and housing sectorsacross the country. Also, major global OEMs are increasingly investing in the country for capacity expansions or for setting upnew automobile production facilities. On account of this, the country’s tire market is expected to witness a healthy growth inmedium to long term.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global managementconsulting firm.

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S a m p l e D a t a - S n a p s h o t

Mexico Tire Market Size, By Value (USD Billion),

By Volume (Million Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Volume (Million Units) Value (USD Billion)

Mexico Tire Market Share, By Vehicle Type, By Volume, 2011-2021F

10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%

20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Two-Wheeler OTR

Medium & Heavy Commercial Vehicle Light Commercial Vehicle

Passenger Car

Mexico Tire Market Share, By Company, By Volume, 2015-2021F

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

10% 10% 10% 10% 10% 10% 10%

20% 20% 20% 20% 20% 20% 20%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Others* Chinese Pirelli Goodyear CooperContinental Tornel Michelin Bridgestone

Mexico Passenger Car Tire Market Size, By Value

(USD Billion), By Volume (Million Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F


Mexico Passenger Car Tire Market Share, By Demand

Category (OEM Vs. Replacement), By Volume, 2011-2021F

30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70%

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

OEM Demand Replacement Demand

Mexico OTR Tire Market Size, By Value (USD

Billion), By Volume (Million Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F


Mexico Tire Market Share, By Demand Category

(OEM Vs. Replacement), By Volume, 2011-2021F

25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75%

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

OEM Demand Replacement Demand

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R e p o r t O r d e r i n g

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evaluation of the opportunities available in the market.

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Disclaimer

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made thatit is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sourcesincluding which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of anyinformation and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that ithas no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can changewithout notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage ofthe same for purpose other than internal will require prior approval of TechSci Research.

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