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Burnaby, British Columbia, Canada, 2013/12/23 - Availability of highly productive skilled labor force at low cost, free trade agreements with many countries and proximity to the US automotive market set to raise the tyre market of Mexico - TechSciResearch.com.
The tyre market revenues of Mexico have grown at the CAGR of around 19% during 2009-12, receiving majority of contribution from the OEM tyre segment, according to the recently published report by TechSci Research “Mexico Tyre Market Forecast and Opportunities 2018”.
Mexico is one of the world’s leading countries in automobile production and exports. The country has 234 bilateral agreements, including 12 FTA (Free Trade Agreements) with 44 countries and 122 multilateral agreements, including NAFTA. These agreements assure preferential access for the Mexican automotive products to the markets of North & Latin America, EU, Canada, Japan, etc. The world’s leading automotive manufacturers have established their production plants in Mexico to cater to the growing domestic and global demand.
The sales of passenger cars and heavy commercial vehicles in Mexico have registered double digit growth during the last three years. Also, the country has one of the largest bus and truck fleets, which is subsequently driving the demand for tyres, particularly in the replacement market.
According to the report the leading tyre companies in Mexico are Continental, Bridgestone, Cooper and JK Tornel, where Continental is dominant. However, likes of Michelin, Goodyear, Pirelli, Yokohama and Hankook, etc., are also focusing on Mexico’s tyre market, which can be inferred from the fact that companies are continuously investing in Mexico for the establishment and expansion of new or existing production and assembly plants.
The report also reveals that the growing retreading tyre industry of Mexico is also being accepted at large scale and major global players have a considerable share in the retreading tyre market of the country.
“Mexico’s tyre market is being driven by the automotive demand in the country as well as in the Latin American region. As Mexico has FTAs with various countries around the world, it has become the most preferred destination for the production of automobiles and its components, in order to cater to the demand of neighboring countries. Thus, increasing investments in the automotive sector along with the growing demand for automobiles in the domestic market is anticipated to contribute significantly to the demand for tyres in the next five years,” said Mr Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Mexico Tyre Market Forecast and Opportunities 2018” has evaluated the future growth potential of Mexico’s tyre industry and provides statistics and information on market structure, exports and future growth of the tyre industry. 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 for the tyre market of Mexico.