BURNABY, Canada, March 20, 2015 /PRNewswire/ --
Growth in Automotive Industry, Strong Domestic Vehicle Assembly Base and Favorable Automotive Policies of Government to Drive Tyre Market in Egypt During 2015-20
According to a recently released TechSci Research report, "Egypt Tyre Market Forecast & Opportunities, 2020", tyre market in Egypt is projected to cross USD1 billion through 2020. Prominent reasons driving growth in the market are healthy growth in automotive industry, strong domestic vehicle assembly base and favorable automotive policies adopted by government. Egypt automotive market is one of the prominent markets in African continent due to its large market size and its geographical location which bridges it to Asia. In 2013, Egypt was the third largest car-producing market in Africa, after South Africa and Morocco.
In Egypt, there are only two tyre manufacturing plants one of which was set up by international tyre manufacturing company Pirelli, while the other belongs to a domestic company Trenco Transport and Engineering Co. Total tyre production of these two plants is considerably less compared to domestic demand for tyres in the country. So, majority of demand for tyres in Egypt is catered through imports, consequently making the country's tyre market highly dependent on imports.
Citing the demand supply gap in tyre market, major tyre manufacturing companies are operating in Egypt by importing tyres into the country and then distributing them across the country through their chain of distributors and dealers. There are more than 17,000 automotive retail outlets, which sell tyres, automotive components and automotive accessories in the country. In 2014, more than 60% of automotive vehicles in Egypt were manufactured through CBU and CKD processes.
Majority of demand for tyres in the country emanates from Cairo and Alexandria, due to presence of large vehicle fleet in these regions. Since a major part of the country's population resides in these regions, the two regions cumulatively accounted for about 39% share in Egypt tyre market in 2014. In addition, the only two tyre manufacturing facilities in the country are both located in Alexandria.
"Passenger car tyre segment is the dominant segment in Egypt tyre market followed by commercial vehicle tyre segment. Sedan cars, owing to their large fleet and consistent growth in sales are contributing to growth of this segment. Consequently, passenger car tyre segment is anticipated to retain its dominance in the market over the next five years." said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Egypt Tyre Market Forecast & Opportunities, 2020" has evaluated the future growth potential of Egypt tyre market and provides statistics and information on market structure, imports and future growth of Egypt tyre market. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyses the emerging trends along with essential drivers, challenges and opportunities available in tyre industry in Egypt.
About TechSci Research
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SOURCE TechSci Research