Burnaby, British Columbia, Canada, December 04, 2015 --(PR.com
)-- According to TechSci Research report, “Ethiopia Tyre Market Forecast & Opportunities, 2020,” the passenger car segment is expected to continue its dominance in the country’s tyre market through 2020. Backed by rising automobile sales, expansion of automobile fleet and favorable government policies, tyre market in Ethiopia is expected to witness significant growth over the next five years. Ethiopia’s tyre market is a replacement driven market as all the vehicles are imported into the country due to absence of any automobile manufacturing facility in Ethiopia. Horizon tyre is the only domestic tyre manufacturing company in the country, while other global tyre players such as Bridgestone, Goodyear, Michelin, Hankook, Yokohama, etc. operate through import route.
On account of an unstable political environment, automobile as well as tyre companies have been facing challenges in conducting their operations in the country over the last few years. However, with the country gradually regaining political stability, coupled with better fiscal and regulatory policies, Ethiopia is expected to evolve into a more open and stable economy over the course of next 5-10 years, which would eventually have a positive impact on the country’s automotive industry in the coming years. Moreover, Ethiopia’s vehicle motorization rate (including passenger cars and commercial vehicles) stood at 2 vehicles per 1,000 people. Consequently, the country is expected to continue witnessing growth in the sales of vehicles, thereby driving tyre demand during the forecast period.
“During 2015-20, OTR tyre segment is expected to emerge as the fastest growing tyre segment, followed by light commercial vehicle tyre, two-wheeler tyre, passenger car tyre and medium & heavy commercial vehicle tyre segment. Nevertheless, passenger car tyre and light commercial vehicle tyre segments accounted for the lion’s share of more than 75% of the total tyre market in Ethiopiain 2014, with medium & heavy commercial vehicle tyres, two-wheeler tyres and OTR tyres following the league,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.