nigeria tire market forecast 2021 - brochure

Nigeria Tire Market Forecast & Opportunities , 2021

M a r k e t I n t e l l i g e n c e . C o n s u l t i n g

T a b l e o f C o n t e n t s

S. No. Contents

1. Product Overview

2. Research Methodology

3. Analyst View

4. Nigeria Tire Market Outlook

4.1. Market Size & Forecast

4.1.1. By Value & Volume

4.2. Market Share & Forecast

4.2.1. By Vehicle Type

4.2.2. By Tire Type (Radial Vs. Bias)

4.2.3. By Company

4.2.4. By Region

4.2.5. Market Attractiveness Index – By Vehicle Type

5. Nigeria Passenger Car Tire Market Outlook





5.3. Popular Sizes

6. Nigeria Two Wheeler (2W) Tire Market Outlook



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S. No. Contents



6.3. Popular Sizes

7. Nigeria Commercial Vehicle Tire Market Outlook



7.2 Market Share & Forecast

7.2.1 By Vehicle Type

7.3. Popular Tire Sizes

8. Nigeria Three Wheeler Tire Market Outlook





8.3. Popular Tire Sizes

9. Nigeria Off-the-Road (OTR) Tire Market Outlook





9.3. Popular Tire Sizes3


S. No. Contents

10. Import Analysis

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Increasing Chinese Tire Penetration

12.2. Used Cars Overtaking New Car Market

12.3. Low Penetration of Retread Tires

12.4. Passenger Car Tire Segment– Fastest growing segment

12.5. Growing Demand for Radial Tires

13. Policy & Regulatory Landscape

14. Nigeria Economic Profile

15. Competitive Landscape

15.1. Michelin Tyre Services Company Ltd.

15.2. Bridgestone Corporation

15.3. Goodyear Tire & Rubber Company

15.4. Hankook Tire Co. Ltd.

15.5. Continental AG

15.6. Pirelli & C. SpA.

15.7. The Yokohama Rubber Co., Ltd.

15.8. Kumho Tire Co., Inc4


S. No. Contents

15.9. GT Radial

15.10. Shandong Wanda BOTO Tyre Co. Ltd.

16. Strategic Recommendations

17. About Us & Disclaimer

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P r o d u c t O v e r v i e w

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© TechSci Research

Global tire supplier Michelin defines tire as “A precisely engineered assembly of rubber,chemicals, fabric, and metal, designed to provide traction, cushion road shock andcarry a load under varying conditions.”

Classification According to Vehicle Type

Product Definition

Vehicle Segment Sub-Segment Customer Segment

Passenger CarSedans

IndividualsSUV/Station wagons/MUV

Commercial Vehicle

Light Trucks, Buses Transport Companies, Logistics, Small Business Entrepreneurs,

GovernmentMedium & Heavy Trucks

Two-wheelerScooter

IndividualsMotorcycle

Three-WheelerPassenger Carrier Passenger Transport

Load Carrier Logistics

OTR (Off-the-Road) Vehicle

Mining, Construction and Industrial Equipment

Mining companies, Construction companies and Industries

Agriculture Vehicle Farmers

Others (Go-cart Vehicles, Golf Cart Vehicles, Special Purpose Vehicles, etc. )

Sports companies, Adventure activity industries etc.

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R e s e a r c h M e t h o d o l o g y

A

C

B

Primary Research

Company Analysis

Desk Research

Identifying Key Opinion

Leaders

Questionnaire Design

In-depth Interviews

Market Participants

Key Strengths

Tire Portfolio

OEM Tie-ups

Recent

Developments

Market Changing

Aspects/Dynamics

Government

Policies

Final Conclusion

LinkedIn TechSci Internal

database

Factiva Hoovers

Paid Sources

Company Website Company Annual

Reports White Paper Study Financial Reports Investor

Presentations Regulatory Body, Associations, etc.

Secondary Research

Primary Research

Data Collection

Data Filter& Analysis

Research &Intelligence

ActionableInsights

BusinessSolution

•In-depth secondary research was used todetermine top players in Nigeria tire market,overall market size and to identify topautomobile tire manufactures.

Market Profiling

•In order to conduct industry experts interviews,TechSci Research formulated a detailedquestionnaire.

Formulating Questionnaire

•List of industry players (manufacturers),distributors, retailers, and industry specialistswas developed.

Developing list of respondents

•TechSci Research conducted interviews withindustry experts, industry players, for datacollection and verification.

Data Collection

•Data obtained as a result of primary andsecondary research was validated throughrigorous triangulation.

Data Validation

•The data was scrutinized using MS-Excel andstatistical tools such as Time Series analysis etc.to obtain qualitative and quantitative insightsabout the Nigeria tire market.

Data Analysis


© TechSci Research

Baseline Methodology:

For the study, TechSci Research has gathered information through primary research surveys with leadingtire companies operating in Nigeria, and subsequently verified information from major dealers/distributorsof automobile tires in the country. We also put through an exhaustive search of credible paid databasessuch as Business Week, Factiva, Hoovers, etc., including our internal database. Our team of analysts hasthen prudently evaluated all the collected information and presented the same in chronological order todepict a meaningful and clear picture of Nigeria tire market.

While compiling the data, we have also cross checked all the collected information from multiple sourcesand data warehouses, so as to present the most accurate and precise information of the concernedindustry. We use innovative business model that focuses on improving productivity, which ensuringcreation of high-quality reports. The reports are prepared with in-depth primary research, followed byexhaustive secondary research.

Primary Research – Companies Dealers & Distributors Interviewed Few of Sources of Secondary Research

S. No. Company Dealers & Distributor Names

1. Bridgestone

2. Kewalram Nigeria Ltd.

3 KwikFit Auto Service Ltd.

4. Dunlop Tyre & Rubber PLC

5. Fatgbems Tires

6. Infinity Tyres

7. Kia Motors Nigeria

8. Toyota Nigeria

9. Viramsun Nigeria Limited

10. Royal United Nigeria

S. No. Secondary Sources

1. OICA

2. National Bureau of Statistics Nigeria

3. Directorate General of Foreign Trade

5. World Bank

6. International Monetary Fund

7. Central Intelligence Agency

8. Nigeria Customs Administration

8


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© TechSci Research

For the preparation of Nigeria tire report, bottom-up model has been used, which has been later crossvalidated by using top down approach.

Vehicle Sales & Fleet Size

The basic data points that are needed for the analysis of Nigeria tire market are the historical, currentand forecast figures for vehicle sales and fleet size. The data for vehicle sales and fleet size has beenextracted through various secondary sources and credible data portals. TechSci Research has alsomaintained a database for vehicle sales and fleet size for each vehicle segment (passenger cars,commercial vehicles, two-wheelers, three-wheelers & off-the-road vehicles), which is regularly updatedthrough various primary research surveys and secondary sources such as automotive associations &government publications.

Tire Demand

OEM Tire Sales

OEM tire demand in Nigeria is directly dependent on country’s vehicle production. The OEM demand istherefore extracted by multiplying the vehicle produced with the number of tires fitted in the vehicle.For example, in case of passenger car, five tires are fitted by the OEM during manufacturing process.


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Tire Demand

Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on country’s vehicle fleet sizeand historical vehicle sales. The replacement demand is therefore extracted by multiplying the vehiclefleet with the replacement tire ratio, which is obtained by conducting a series of surveys with carowners to understand the frequency of tire replacement as it varies for different countries dependingupon factors such as road conditions, climate, economic and regulatory policies applicable in a country.The replacement ratio is expressed as a percentage. For example, in case of passenger cars,replacement ratio is considered to be 100% if four tire is replaced per vehicle per year.

Example for passenger car replacement tire demand calculation:

Passenger Car Fleet

Size (Volume)X

Replacement Ratio

(%)X No. of Tires =

Replacement

Tire Demand

1,00,000 X 10% X 4 = 40,000 Tires

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphitechnique i.e. multiple rounds of telephonic interviews were conducted with tire companiesdealers/distributors in Nigeria. The information thus gathered through primary interviews was cross-verified through industry experts and secondary sources such as annual reports and paid databases togenerate meaningful results.

Total Tire Market

OEM Tire Sales + Replacement Tire Sales = Total Tire Market


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© TechSci Research

Tire Trade (Import & Export)

TechSci Research has analyzed tire imports in Nigeria. The data has been gathered throughgovernment agencies and credible paid databases. The total tire trade has been segmented inaccordance with below mentioned HS codes:

HS Code Description Tire Type

401110 Motor Cars Passenger Car Tire

401120 Bus or Lorries Tires Commercial Vehicle Tire

401140 Motorcycle Tire Two-Wheeler Tire

401161 Tire Having a "Herring Bone"

OTR Tire





401192 Agriculture Tire

401193 Construction/Industrial Tire

401194 Construction/Industrial Tire

401199 Others Other Tires

The import figures for each vehicle type (Passenger Car, Commercial Vehicle, Two-Wheeler, Three-wheelers & OTR) have been depicted in Value (USD Million).

Forecast

For forecasting the numbers, we have used Time Series Analysis along with Regression Analysis,followed by judgmental analysis as certain factors would always differ in Nigeria such as infrastructurecondition, economic outlook, etc.


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© TechSci Research

Sampling Technique:

While conducting the study, TechSci followed the stratified random sampling technique to shortlist the Key

Opinion Leaders (KOLs) in various tire companies in the country. KOLs out of prominent tire companies were

interviewed to identify the size of Nigeria tire market along with the market shares of leading tire players across

different tire segments.

Sample Size:

KOL No. of Respondents

Mid to Senior Management, Sales Managers, etc.of Tire Companies

15

Experts from Industry and Associations 5

Total 20

I n d u s t r y B r i e f

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Nigeria Tire Market Forecast to Surpass $615 Million Sales by 2021

Rising automobile sales, expanding vehicle fleet and easing government policies to drive tire market inNigeria through 2021

According to TechSci Research report, “Nigeria Tire Market Forecast and Opportunities, 2021”, the tiremarket in Nigeria is forecast to surpass $615 million by 2021. Growing vehicle sales, expandingautomobile fleet and increasing infrastructure development are some of the major factors anticipated toboost the demand for tires in the country over the next five years. In Nigeria, automobile salesincreased from 0.30 million units in 2011 to 0.35 million units in 2015,exhibiting a CAGR of 4.35%, involume terms, during 2011-2015.

Due to the absence of OEM vehicle production in the country, Nigeria’s tire industry is entirely dependenton the replacement tire market. In 2015, the passenger car tire segment dominated the Nigeria tiremarket, followed by two-wheelers, commercial vehicles, three-wheeler and OTR vehicles. Owing to easyfinance options and growing purchasing power of consumers, the adoption rate of passenger cars in thecountry is increasing at a robust pace. As a result, the passenger car tire segment is anticipated tomaintain its dominance in the country’s tire market over the next five years as well.

“The dominating presence of various multinational companies such as Bridgestone, Goodyear, Michelin,etc. intensified the tire market of the country in 2015. However, as there isn’t any tire manufacturingfacility present in the country, the domestic demand for the product is solely dependent on the importsin Nigeria. Moreover, the widespread presence of well-established network of dealers and distributors isenhancing the market share of the above mentioned renowned tire companies in Nigeria.”, said Mr. KaranChechi, Research Director with TechSci Research, a research based global management consulting firm.

https://www.techsciresearch.com/report/nigeria-tire-market-forecast-and-opportunities-2021/793.html

S a m p l e D a t a - S n a p s h o t

Nigeria Tire Market Size, By Value (USD Million),

By Volume (Million Units), 2011-2021F

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© TechSci Research

100 200 300 400500 600 700 800 900 1,000 1,100

150 300450 600 750 900 1,050

1,2001,350 1,500 1,650

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Value (USD Million) Volume (Million Units) Source:XXXXXNote: These are dummy figures; please purchase our report for actual data

Nigeria Tire Market Share, By Company, By Volume, 2015-2021F

10% 10% 10% 10% 10% 10% 10%

15% 15% 15% 15% 15% 15% 15%

20% 20% 20% 20% 20% 20% 20%

25% 25% 25% 25% 25% 25% 25%

30% 30% 30% 30% 30% 30% 30%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Others* Goodyear Bridgestone Michelin Chinese Tires**

Nigeria Tire Market Attractiveness Index, By

Vehicle Type, By Volume, 2015

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Commercial Vehicle

OTR Vehicle

Passenger Car

Two-Wheeler

Three-Wheeler

Nigeria OTR Tire Market Share, By Vehicle Type, By

Volume, 2015-2021F

33% 33% 33% 33% 33% 33% 33%

34% 34% 34% 34% 34% 34% 34%33% 33% 33% 33% 33% 33% 33%

2015 2016F 2017F 2018F 2019F 2020F 2021F

Agriculture EquipmentConstruction and Mining EquipmentOthers*

Nigeria Tire Market Share, By Vehicle Type,

By Volume, 2011-2021F

2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%13%13% 13% 13% 13% 13% 13% 13% 13% 13% 13%

20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

OTR Three Wheeler Commercial Vehicle

20% 20% 20% 20% 20% 20% 20%

80% 80% 80% 80% 80% 80% 80%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Load Carrier Passenger Carrier

Nigeria Three-Wheeler Tire Market Share, By Vehicle

Type, By Volume, 2015-2021F

Nigeria Two-Wheeler Tire Market Size, By Value (USD

Million), By Volume (Million Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Value (USD Billion) Volume (Million Unit)

R e p o r t O r d e r i n g

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TechSci Research is a global market research and consulting company with offices in US, UK and India. TechSci Research provides

market research reports in a number of areas to organizations. The company uses innovative business models that focus on improved

productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-

specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global

industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation

of the opportunities available in the market.

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Disclaimer

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made thatit is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sourcesincluding which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of anyinformation and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that ithas no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can changewithout notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage ofthe same for purpose other than internal will require prior approval of TechSci Research.

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