Is South Africa Ready for The Ongoing Paradigm Shift in The Tire Industry?

The Falken Tyre brand, distributed in South Africa by Stamford Tyres, is set to launch three new product lines in South Africa, namely the Ziex ZE310, Wildpeak MT 0/1, and Wildpeak AT Trail. The expected launch date falls around mid-October and late November 2022. The goal is to serve automotive enthusiasts, including adventurers, performance seekers, and tough off-roaders.

With behemoths like Falken Tyres willing to expand their portfolio in South Africa, the tire industry here is determined to hit new benchmarks in the future. In fact, a recent report published by MarkNtel Advisors projects the South Africa Tire Market to augment at a CAGR of around 4.5% during 2021-26.

The data clearly indicates the immense possibility that the tire market has demonstrated in recent years. However, Is South Africa yet ready to explore it to the maximum capacity? To answer innumerable questions like this, we must delve into the market dynamics and illuminate the aspects that have molded South African tires into their current forms.

Comprehending The Market Dynamics

With several trade agreements materializing in recent years, South Africa appeared as an innovative tire production hub. It is why the country is likely to present profitable opportunities to manufacturers and investors. Moreover, to comprehensively expand & sustain its tire manufacturing capabilities & units, South Africa launched APDP (Automotive Production & Development Program) in 2021. Through this plan, South Africa seeks to ramp up its automotive sector by devising an atmosphere for vehicle manufacturers, aiding them to increase their production volumes at a massive scale.

The robust tires facilitating better grip, exerting weight & pressure, and function on changing terrain are in vogue. Thanks to the ever-increasing construction activities across the nation that has up scaled the need for heavy-duty vehicles. Apart from this, the growing mining operations owing to the vast number of Platinum reserves have encouraged the adoption of heavy-duty vehicles and passively influenced the production of tires across South Africa.

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Other than this, the rolling penetration of two-wheelers among the younger generation & working females and the steady adoption of electric motorbikes are likely to influence tire sales positively. The traffic congestion & uneven terrains again instigate the need for super-advanced tire patterns for these vehicles.

A Glance at The Cutting-Edge Advancements

This year, January witnessed a notable expansion by the multinational online tire retailer Black circles. The company has finally extended its service in South Africa. The franchise here will accommodate an extensive selection of passenger cars, sports-utility vehicles, and 4 x 4 tires, among others. The rights to launch Black circles in South Africa have been acquired by Sumitomo Rubber, a South African tire manufacturing company. SRSA manufactures its own tires alongside tire brands Dunlop and Falken in Ladysmith, KwaZulu-Natal.

Along similar lines, Sumitomo Rubber announced the launch of two models from the SPVAN01 tire range. The range intends to serve commercial vehicles such as bakkies, trucks, and panel vans. Next, the SP SPORT MAXX 060+ from Dunlop, a new ultra-high-performance tire designed for an ever-discerning market, has proven to be a superb option for high-end passenger cars, sports models, SUVs, and crossovers. Due to its remarkable high-speed stability and superior grip in wet and dry road conditions, it could navigate turns smoothly on different surfaces, including wet skidpans, gymkhanas, and high-speed tracks.

Way Forward

With companies like Blackcircles debuting in South Africa and The Falken Tyre brand expanding its portfolio, tire production is set to fly high in the coming years. However, there are a few menaces that need to be addressed in order to sustain in the long run. The primary nuance would be the fluctuations in fuel prices that might severely impact automobiles, especially among the cost-sensitive population of the country. It might tear apart the tire industry in South Africa. Likewise, inflated prices of raw materials, like crude oil, and rubber, pose a severe threat to the tire industry.

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