Brazilian Tyre Replacement Market to Surpass 63 Million Units by 2016 Says TechSci Research

Burnaby, Canada, March 01, 2012 --(PR.com)-- The tyre manufactured to run thousands of miles in all types of road in muddy terrain, rocky slopes, deserts and frozen lands up, can have many and varied components responsible for the performance necessary for this complex product. Tyre manufacturing has been one of most important stakeholders for the automotive industry. Tyres are replaced on an average of three years after the original sale of automobile. With the growing global tyre market, replacement market is also on pace now as it accounts for almost two-third of the total tyre demand worldwide.

According to recently published report by TechSci Research “Brazil Tyre Market Forecast & Opportunities, 2016” global replacement tyre market stood at around 69% of the global tyre sales in 2011 whereas replacement tyre market in Brazil was just 45% of the total market. “Brazilian tyre market is anticipated to grow at CAGR of around 13% for next five years. It is forecasted that replacement tyre market will grow at a much faster pace than anticipated earlier due to increasing number of automobiles on Brazilian roads to reach 63 Million units by 2016,” said Karan Chechi, Research Director with TechSci Research a global market research and consulting company.

The Brazilian market is supplied with both new and retread tyres whereas in the European Union there is no significant market for retreads. Brazil had a higher proportion of retread tyres because of low per capita income and the poor conditions of the country’s roads. Brazil is the second largest retread market in the world however according to Brazilian regulations tyres can only be retreaded once. Brazil prefers rethreaded tyres as it extends the life of the tyre by 40% and again it’s better for the country because rebuilding saves 80% in power and raw materials when compared with production of new tyres.

Currently due to less per capita income consumers prefer rethreading because of low cost but as the per capita is increasing buyer trends are changing towards replacement of tyre rather than rethreading. The rethreading market will gradually decrease and replacement will slowly but surely increase. The exponentially increasing demand from automobile manufacturers and replacement market will continue to drive the Brazilian tyre industry landscape in coming years.

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