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Chinese tire companies are scrambling to enter the African tire market

2019-05-29 19:02:21   Source:Rubber China net    Click:    Font Size:Massive Central Small

Chinese tire companies are scrambling to enter the African tire market

With the traditional international tire market frustrated and the domestic tire market saturated, the African tire market has become a new growth market for Chinese tire companies and automobiles companies to enter into

Size of African tire market

Africa has one of the fastest growing middle classes and will have a positive impact on the global car market

A report from ihs says African cars are enjoying unprecedented growth, with demand expected to double in the next 10 to 20 years

Studies have shown thatDemand in Africa for new tyres for light vehicles (those capable of carrying no more than six tonnes)It has continued to exceed 1.6 million articles/year since 2012.Simultaneous prediction displayThe demand for light tyres in the African market will increase to 2.7 million tyres per year in 2027.

African countries are actively developing the automobiles industry

And auto power in Africa, the South African government has the car industry, as an important pillar of drive South Africa's economic growth, and relevant policies to support localization for the enterprise, the goal is to 2020, the annual output up to 1.2 million cars in the country at the same time, the northern part of the government is also in Africa through the development of auto industry in order to increase their employment and promote economic growth

At the same time, in order to improve the performance of the vehicle security, strengthen environmental protection, most African countries have policies in recent years, restricted by safety testing and environmental standards used to import this drive the steam car companies build factories in Africa, there are more than a dozen world auto company in South Africa factory production cars, Chinese auto companies such as Beijing has stepped up the pace of market development in Africa

All these have created market conditions for driving the demand of African tire industry. Previously, the international tire exhibition held in South Africa attracted enterprises from China, South Africa, India, Germany and other countries to participate in the exhibition, and the number of Chinese enterprises participating in the exhibition also increased exponentially


Demand analysis of African tire market

According to Walt Madeira, senior researcher at IHSOnly two African countries, South Africa and Algeria, are expected to grow at double-digit rates until 2027Both South Africa and Algeria are expected to sell more than half a million cars by 2027

However, in recent years, the Nigerian and angolan car markets have shown strong growth vitality.By 2027, Nigeria's car sales are forecast to reach 260,000 a year, according to professionals

Madeira thinks South Africa's share of car sales across the region will gradually drop from 40 percent in 2011 to 32 percent in 2027, thanks to rapid growth in other countries

Heavy trucks and buses, Africa regional difference is not big, but Kenya's new prospects, Africa is moving parts of the country one of the three major market director of IHS global Andrej Divis said, by 2027, Kenya is expected in 2012, on the basis of car sales, increase 4 times, with South Africa, Algeria, Africa region of the top three areas in the automobiles sales   

Take South Africa as a springboard to radiate the whole African market

A veteran of foreign trade, said South Africa is the bridgehead of the African market, there is a customs union relationship with other African countries, once the product into South Africa, Chinese enterprises can as a springboard to open African markets here, is the best starting point of China tire enterprises to exploit Africa market, and China automobiles enterprises represented by baic South Africa did just that

It is reported that there have been some Chinese tire companies optimistic about the South African market in addition to participate in the tire exhibition, some tire companies also set up an office or trading company in South Africa, some are trying to develop local important dealers, we hope through this market tire products radiation to the whole Africa

Radiation based in South Africa, Africa, this is a lot of the development strategy of Chinese car companies have learned, 26 countries in Africa have jointly set up triad (TFTA) free trade area, the trade area is expected in 2017 after the official start running the zone's ultimate goal is to promote goods zero tariff in the member states of the flow, the production car in South Africa is expected to be at zero tariff to enter other 25 members of China's auto and tire companies, this may be an attractive market opportunities

China-africa trade research center analysis of the latest forecasts suggest that over the next 10 to 20 years, Africa's car market demand will be doubled, it will greatly promote the development of tire market in Africa, Algeria, South Africa and Kenya in The Three Kingdoms and the future is expected to become a region in cars in the first three big parts of Africa, the three countries will also be a tire consumption biggest market in Africa