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    The Tyre Industry in South Africa 2021

    Stephen Timm | South Africa | 12 September 2021

    The Tyre Industry in South Africa 2019

    Yasmin Mahomedy | South Africa | 03 September 2019

    The Tyre Industry in South Africa 2017

    Yasmin Mahomedy | South Africa | 12 June 2017

    The Tyre Industry in South Africa 2015

    Juliet Gebbie | South Africa | 16 November 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report focuses on the tyre industry in South Africa including the manufacture and retail of tyres. It includes comprehensive information on the size and state of the industry, trade and investment, and influencing factors. There are profiles of 17 companies including the major manufacturers Bridgestone, Continental, Goodyear and Sumitomo, tyre retailers such as Hi-Q and TrenTyre and other companies such as Bandag, which makes rubber retread products.

    Introduction

    This report focuses on the tyre industry in South Africa, which was worth about R30bn in sales in 2015, the last year for which sales data is available. Sales of locally-manufactured tyres plunged by 24% to 5.4 million units in 2020, which made up 45% of the combined 12 million tyre sales and imports in 2020 (down from 15.2 million in 2019). While local production declined during the pandemic, it has fallen year on year since 2015, despite local manufacturers having invested R5.7bn between 2015 and 2020. Sales of locally-manufactured tyres fell by 11.1% between 2015 and 2019, from 8.1 million to 7.2 million units. Tyre imports, however, have increased, from US$600.5m to US$689m (about R10.5bn) in 2018, before falling, to US$468m (about R7.1bn) in 2020. The sector faces a number of challenges, from growing imports and illegal import practices such as under-invoicing, a carbon tax which came into effect in 2019 and recent raw materials increases which have added to costs. Another key challenge is the improper processing of waste tyres, which has led to millions of unsafe second-hand tyres being sold locally.

    Strengths

    • Close to growing African markets.
    • Industry produces quality products, backed by credible standards specifications.
    • Substantial investment in modernising tyre manufacturers’ plants, creating excess capacity to supply both the domestic and export markets.
    • Technological innovation by global tyre companies with research and development expertise.

    Weaknesses

    • Insufficient skills training and a shortage of rubber technologists and technicians.
    • Lack of appropriate regulations which allows tyre importers to bring in often sub-standard products.

    Opportunities

    • The African Continental Free Trade Area offers tyre manufacturers an opportunity to export to the rest of Africa.
    • The manufacture of more sustainable tyres.
    • The manufacture of tyres for electric vehicles.
    • The new Tyre Management Plan on waste tyres which is expected to be finalised by April 2022.
    • The South African Automotive Masterplan which aims to increase South Africa’s share of automotive production to 1% of global automotive production.

    Threats

    • A poorly-performing waste tyre process which risks adding to costs for manufacturers and tyre retailers, while doing little to reduce waste tyres that often end up as illegal used tyres or create pollution and health risks.
    • Currency weakness, which pushes up prices of imported inputs.
    • Further increases in input costs.
    • Growing tyre imports, which include illegal imports (including under-invoicing).
    • The carbon tax, which came into effect in 2019.
    • The pandemic and threat of further waves could lower consumer spending which will affect tyre sales.

    Outlook

    South Africa’s tyre industry is under pressure from an increase in cheap imports, rising input costs anda decline in disposal income. Local vehicle production is beginning to recover, but further waves of the pandemic in South Africa, particularly given the low vaccination rate, are likely to put disposable income under further pressure. In the passenger car and light truck market, where the biggest demand for tyres is, Michelin expects the market segment for tyres for original equipment manufacturers to grow globally at just 0.5% between 2019 and 2023, and 0.7% over the same period for the replacement market. Automotive Industry Export Council executive manager Norman Lamprecht predicts an 18% increase in vehicle exports in 2021 but warned it could take three years for numbers to recover to pre-pandemic levels.

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    The Tyre Industry in South Africa
    The Tyre Industry in South Africa 2021

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    Industry Landscape

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    Industry Organogram

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    The Tyre Industry in South Africa 2019-09-03

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    The Tyre Industry in South Africa 2017-06-12

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    The Tyre Industry in South Africa 2015-11-16

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 7
    4.1. Local 7
    4.1.1. Trade 11
    4.1.2. Corporate Actions 18
    4.1.3. Regulations 18
    4.1.4. Enterprise Development and Social Economic Development 21
    4.2. Continental 22
    4.3. International 24
    5. INFLUENCING FACTORS 29
    5.1. Coronavirus 29
    5.2. Economic Environment 29
    5.3. Rising Input Costs 30
    5.4. Government Support 32
    5.5. Unsafe Tyres 32
    5.6. Labour 33
    5.7. Technology, Research and Development (R&D) and Innovation 35
    5.8. Environmental Concerns 36
    6. COMPETITION 40
    6.1. Barriers to Entry 40
    7. SWOT ANALYSIS 41
    8. OUTLOOK 41
    9. INDUSTRY ASSOCIATIONS 42
    10. REFERENCES 42
    10.1. Publications 42
    10.2. Websites 43
    APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 44
    COMPANY PROFILES 44
    APOLLO TYRES AFRICA (PTY) LTD 44
    AUTO AND TRUCK TYRES (PTY) LTD 46
    BANDAG SOUTHERN AFRICA (PTY) LTD 48
    BRIDGESTONE SOUTH AFRICA (PTY) LTD 51
    BRIDGESTONE SOUTH AFRICA COMMERCIAL (PTY) LTD 54
    BRIDGESTONE SOUTH AFRICA RETAIL (PTY) LTD 57
    CONTINENTAL TYRE SOUTH AFRICA (PTY) LTD 60
    GOODYEAR SOUTH AFRICA (PTY) LTD 64
    HI-Q AUTOMOTIVE (PTY) LTD 66
    KWIK FIT BRANDS (PTY) LTD 72
    LEADER RUBBER COMPANY SA (PTY) LTD 74
    MICHELIN TYRE COMPANY SOUTH AFRICA (PTY) LTD 76
    NUVO SOLID TYRES (PTY) LTD 78
    PROTEA VERSOOLWERKE (ERMELO) (PTY) LTD 80
    SUMITOMO RUBBER SOUTH AFRICA (PTY) LTD 82
    TIAUTO INVESTMENTS (PTY) LTD 85
    TRENTYRE (PTY) LTD 89

    Introduction

    This report focuses on the tyre industry in South Africa, which was worth approximately R30bn annually in 2015. The sector is being challenged by increasing input costs and cheap tyre imports. Financially-stressed consumers feeling the effect of increasing fuel, electricity and general living costs view replacing tyres as grudge purchases and are buying cheaper imported tyres.

    Strengths

    • Close to growing African markets.
    • Industry produces quality products, backed by credible standards specifications.
    • Substantial investment in modernising tyre manufacturers’ plants, creating excess capacity to supply both the domestic and export markets.
    • Technological innovation by global tyre companies with research and development expertise.

    Weaknesses

    • Insufficient skills training and a shortage of rubber technologists and technicians.
    • Lack of appropriate regulations which allows tyre importers to bring in often sub-standard products.

    Opportunities

    • Increasing demand from the rest of Africa.
    • Waste tyre recycling spin-offs.

    Threats

    • Cheap imports.
    • Currency weakness, which pushes up prices of imported inputs.
    • Further increases in input costs.

    Outlook

    South Africa’s tyre industry is expected to remain under pressure due to a severely strained economic environment, volatile currency, increasing fuel, electricity and raw material costs, and competition from cheap imported tyres. Competition from second-hand tyre dealers, often selling unsafe tyres, will continue to affect tyre dealers and the South African Tyre Manufacturers Conference says it will continue to call on government to introduce appropriate regulations to control and facilitate the sale of safe used tyres.

    The Tyre Industry in South Africa
    The Tyre Industry in South Africa 2019

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    Industry Landscape

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    The Tyre Industry in South Africa 2021-09-12

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    The Tyre Industry in South Africa 2017-06-12

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    The Tyre Industry in South Africa 2015-11-16

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 5
    4.1. Local 5
    4.1.1. Corporate Actions 7
    4.1.2. Regulations 7
    4.1.3. Enterprise Development and Social Economic Development 9
    4.2. Continental 10
    4.3. International 10
    5. INFLUENCING FACTORS 11
    5.1. Economic Environment 11
    5.2. Rising Operating Costs 12
    5.3. Government Support 12
    5.4. Unsafe Tyres 12
    5.5. Labour 13
    5.6. Technology, Research and Development (R&D) and Innovation 15
    5.7. Environmental Concerns 16
    6. COMPETITION 18
    6.1. Barriers to Entry 18
    7. SWOT ANALYSIS 19
    8. OUTLOOK 19
    9. INDUSTRY ASSOCIATIONS 19
    10. REFERENCES 20
    10.1. Publications 20
    10.2. Websites 20
    APPENDIX 1 21
    Summary of Notable Players 21
    COMPANY PROFILES 26
    APOLLO TYRES AFRICA (PTY) LTD 26
    AUTO AND TRUCK TYRES (PTY) LTD 28
    BANDAG SOUTHERN AFRICA (PTY) LTD 30
    BRIDGESTONE SOUTH AFRICA (PTY) LTD 33
    BRIDGESTONE SOUTH AFRICA COMMERCIAL (PTY) LTD 36
    CONTINENTAL TYRE SOUTH AFRICA (PTY) LTD 39
    GLASFIT SOUTH AFRICA (PTY) LTD 42
    GOODYEAR SOUTH AFRICA (PTY) LTD 49
    HI-Q AUTOMOTIVE (PTY) LTD 51
    LEADER RUBBER COMPANY SA (PTY) LTD 57
    MICHELIN TYRE COMPANY SOUTH AFRICA (PTY) LTD 59
    NUVO SOLID TYRES (PTY) LTD 61
    PG GROUP (PTY) LTD 63
    PROTEA VERSOOLWERKE (ERMELO) (PTY) LTD 67
    SUMITOMO RUBBER SOUTH AFRICA (PTY) LTD 69
    TIAUTO INVESTMENTS (PTY) LTD 72
    TRENTYRE (PTY) LTD 75

    Report Coverage

    The South African Tyre Industry report provides an overview of the sector, outlines current conditions and discusses factors that influence the success of the industry. The report profiles 17 companies including the four major local tyre manufacturers, Goodyear, Bridgestone, Continental and Sumitomo, all owned by international tyre companies with extensive global footprints. Also profiled are major importers such as French company, Michelin Tyre Company South Africa and Indian company, Apollo Tyres Africa who are represented by the Tyre Dealers and Fitment Association (TDAFA), a subsidiary of the Retail Motor Industry. Profiles for tyre fitment and distribution centres such as Hi-Q Automotive and Kwik Fit South Africa are also included.

    Introduction

    This report focuses on the tyre industry in South Africa which is worth approximately R30bn annually and employs about 7,000 people directly as well as an additional 4,000 people through the value chain. The sector is a significant contributor to South Africa’s economy and is one of the key supporting industries for the automotive industry. Almost 11 million tyres are manufactured locally each year with 2 million of these exported. Despite local manufacture, 40% of passenger car tyres and 60% of truck tyres are imported and with increasing input costs, these figures could increase as local manufacturers struggle to remain competitive against cheap tyre imports.

    Strengths

    • Access to local supplies of synthetic rubber.
    • Close to growing African markets.
    • Industry produces quality products, backed by credible standards specifications.
    • Substantial investment in modernising tyre manufacturers’ plants, creating excess capacity to supply both the domestic and export markets.
    • Technological innovation enabled by global tyre companies with research and development expertise.

    Weaknesses

    • Insufficient skills training and a shortage of rubber technologists and technicians.
    • Lack of adequate policing which means that tyre importers under-declare the value of imports, which results in them paying less VAT and import duty.
    • Poor quality products that flood the market.

    Opportunities

    • Increasing demand from the rest of Africa.
    • Waste tyre recycling spin-offs.

    Threats

    • Cheap imports.
    • Currency weakness, which pushes up prices of imported inputs.
    • Further increases in input costs.
    • Recycling efforts could be at risk with REDISA being placed in provisional liquidation.

    Outlook

    Increasing raw material, fuel and electricity costs, currency fluctuations and an unstable economic environment are expected to keep manufacturers under pressure in the short-term. Although the sector has benefitted from investments over the past few years, South Arica’s downgrade to junk status and General Motors’ decision to stop manufacturing in the country could see manufacturers cutting back on capital spending in the next few years or until the trading environment becomes more stable.

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    The Tyre Industry in South Africa
    The Tyre Industry in South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $104.88 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.42 (USD)*

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    Historical Reports

    The Tyre Industry in South Africa 2021-09-12

    R 1 900.00(ZAR) estimated $104.88 (USD)*

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    The Tyre Industry in South Africa 2019-09-03

    R 1 900.00(ZAR) estimated $104.88 (USD)*

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    The Tyre Industry in South Africa 2015-11-16

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 11
    4.1. Local 11
    4.1.1. Corporate Actions 14
    4.1.2. Regulations 15
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 17
    4.3. International 18
    5. INFLUENCING FACTORS 20
    5.1. Economic Environment 20
    5.2. Rising Operating Costs 20
    5.3. Government Support 21
    5.4. Labour 21
    5.5. Technology, Research and Development (R&D) and Innovation 22
    5.6. Environmental Concerns 23
    6. COMPETITION 25
    6.1. Barriers to Entry 26
    7. SWOT ANALYSIS 26
    8. OUTLOOK 27
    9. INDUSTRY ASSOCIATIONS 27
    10. REFERENCES 27
    10.1. Publications 27
    10.2. Websites 28
    COMPANY PROFILES 29
    APOLLO TYRES AFRICA (PTY) LTD 29
    AUTO AND TRUCK TYRES (PTY) LTD 31
    BANDAG SOUTHERN AFRICA (PTY) LTD 33
    BEARCAT TIRE (PTY) LTD 35
    BRIDGESTONE SOUTH AFRICA (PTY) LTD 37
    BRIDGESTONE SOUTH AFRICA COMMERCIAL (PTY) LTD 40
    BRIDGESTONE SOUTH AFRICA RETAIL (PTY) LTD 42
    CONTINENTAL TYRE SOUTH AFRICA (PTY) LTD 44
    GOODYEAR SOUTH AFRICA (PTY) LTD 47
    HI-Q AUTOMOTIVE (PTY) LTD 49
    KWIK FIT SOUTH AFRICA (PTY) LTD 55
    LEADER RUBBER COMPANY SA (PTY) LTD 57
    MICHELIN TYRE COMPANY SOUTH AFRICA (PTY) LTD 59
    SUMITOMO RUBBER SOUTH AFRICA (PTY) LTD 61
    TIAUTO INVESTMENTS (PTY) LTD 64
    TRENTYRE (PTY) LTD 66
    X-IT HOLDINGS (PTY) LTD 70

    Report Coverage

    The report on the South African Tyre Industry focuses on current conditions and factors influencing the success of the sector. The role of manufacturers, importers, retailers, retreaders, fitment centre operators and recyclers in the local market is highlighted and eighteen companies are profiled. These range from Leader Rubber Company SA (Pty) Ltd, which manufactures precured tread for the retreading industry, to Trentyre (Pty) Ltd, which manufactures Goodyear tyres and employs 1,500 people in its 80 branches and 14 retread factories.

    Introduction

    This report focuses on the South African tyre industry, which is estimated to be worth approximately R30bn annually and provides direct jobs to at least 7,000 people. Of the approximately 11 million tyres sold locally each year, about 5 million are imported, while 2 million locally manufactured tyres are exported. The key issues facing South African tyre manufacturers and importers are ever-increasing imports and the dumping of low-cost subsidised tyres, mainly from the Far East, declining labour productivity and rising electricity costs.

    Strengths

    • Access to local supplies of synthetic rubber.
    • Close to growing African markets.
    • Industry produces quality products, backed by credible standards specifications.
    • Substantial recent investment in modernising tyre manufacturers’ plants, creating excess capacity to supply both the domestic and export markets.
    • Technological innovation enabled by global tyre companies with research and development expertise.
    • The price of raw materials continues to decline globally, making prices more competitive than they have been in the past.

    Weaknesses

    • Insufficient skills training and a shortage of rubber technologists and technicians.
    • Low labour productivity levels compared to global tyre industry average.
    • Poor quality products that flood the market.

    Opportunities

    • Greater intra-African trade prospects.
    • Waste tyre recycling spin-offs.
    • Weaker rand could strengthen market share of local manufacturers.

    Threats

    • Cheap imports and dumping, of Chinese tyres in particular.
    • Currency weakness, which pushes up prices of imported inputs.
    • Further looming electricity price increases.
    • Strikes and labour difficulties.

    Outlook

    The global tyre industry is predicted to grow at a rate of 4.5% per annum over the next few years, with passenger cars making up the greatest proportion of the market at 45%, followed by trucks and buses at 33%. Traditional tyre markets such as Europe are expected to grow by a small margin of approximately 2%, while greater growth is expected in the developing countries and in the largest market for tyres, the US, as its economy shows some recovery. In the current sluggish global economy, there is more and more pressure on profit margins and this is expected to cause some rationalisation in the industry, therefore resulting in a decline in the number of retailers in the business. The unstable prices of raw material critical to the manufacturing of tyres will mean that tyre manufacturers will continue to explore alternative sources of materials, particularly in the case of natural rubber. As prices of the raw materials become more competitive, smaller tyre brands might find the industry increasingly unsustainable. The move towards more sustainable, environmentally friendly products will continue, with more emphasis on raw material replacements, recycling of tyres, tyre labelling and reducing rolling resistance. \r\n\r\nThe concerns of tyre manufacturers and retreaders about the ongoing job-eroding effect of cheap tyre imports continue, and the tyre manufacturing industry continues to call for government to put trade barriers in place to help the local tyre industry. Insiders in the industry speculate that unless this takes place, the South African tyre manufacturing industry will be under real threat. Concerns also remain about demands for high wage increases, substantial electricity price hikes and continuing labour disputes.

    Read More..
    The Tyre Industry in South Africa
    The Tyre Industry in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $104.88 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.42 (USD)*

    Buy Now +

    Historical Reports

    The Tyre Industry in South Africa 2021-09-12

    R 1 900.00(ZAR) estimated $104.88 (USD)*

    View Report Add to Cart

    The Tyre Industry in South Africa 2019-09-03

    R 1 900.00(ZAR) estimated $104.88 (USD)*

    View Report Add to Cart

    The Tyre Industry in South Africa 2017-06-12

    R 1 900.00(ZAR) estimated $104.88 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 11
    4.1.3. Enterprise Development and Social Economic Development 13
    4.2. Continental 14
    4.3. International 15
    5. INFLUENCING FACTORS 17
    5.1. Economic Environment 17
    5.2. Cheap Tyre Imports 17
    5.3. Labour Resources 18
    5.4. Technology 19
    5.5. Research and Development (R&D) 20
    5.6. Innovation 21
    5.7. Environmental Concerns 22
    6. COMPETITION 24
    7. SWOT ANALYSIS 25
    8. OUTLOOK 26
    9. INDUSTRY ASSOCIATIONS 27
    10. REFERENCES 27
    10.1. Publications 27
    10.2. Websites 28
    COMPANY PROFILES 29
    ABC Fitment Centre (Pty) Ltd 29
    Apollo Tyres Africa (Pty) Ltd 31
    Auto and Truck Tyres (Pty) Ltd 33
    Bandag Southern Africa (Pty) Ltd 35
    Barden (Pty) Ltd 38
    Bearcat Tire (Pty) Ltd 40
    Bridgestone South Africa (Pty) Ltd 42
    Bridgestone South Africa Commercial (Pty) Ltd 45
    Bridgestone South Africa Retail (Pty) Ltd 47
    Continental Tyre South Africa (Pty) Ltd 49
    Goodyear South Africa (Pty) Ltd 52
    Hi-Q Automotive (Pty) Ltd 54
    Leader Rubber Company SA (Pty) Ltd 56
    Michelin Tyre Company South Africa (Pty) Ltd 58
    Sumitomo Rubber South Africa (Pty) Ltd 60
    Trentyre (Pty) Ltd 63
    TiAuto (Pty) Ltd 65
    X-IT Holdings (Pty) Ltd 67

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