A few days ago, reporters learned from professionals that due to the setback in the US market, Chinese tires have flocked to the European Union, which currently does not have anti-dumping measures. This has led to a fierce price war in this market, and many companies’ profits have been meagre. The relevant experts issued a warning, suggesting that this move may incur the risk of anti-dumping.
The US market has failed. South America also anti-dumped. The European Union does not make any money. Where else can Chinese tires go? A recent automotive research report shows that the demand for tires in the African market is at an unprecedented growth trend, and here it may become a “new continent†for Chinese tire exports.
How big the African market is<br><br> The report from HIS Company stated that African cars are enjoying an unprecedented period of growth and it is expected that in the next 10 to 20 years, the demand for cars in the African market will double. This is one of the fastest growing areas for the middle class, which will have a positive impact on the global automotive market.
Research shows that the demand for new tyres for light vehicles (with a load of no more than 6 tons) has continued to exceed 1.6 million pieces/year since 2012. It is predicted that the demand for light tyres in this market will grow to 2.7 million pieces/year by 2027.
It is understood that the South African government has listed the automobile industry as an important pillar for stimulating economic growth and has issued relevant policies to support the localization of the company. Its goal is to increase the annual national automobile production to 1.2 million by 2020. At the same time, some northern African governments are also increasing their employment rate and promoting economic growth through the development of the automobile industry.
At the same time, in order to improve the safety performance of vehicles and strengthen environmental protection, most African countries have introduced policies in recent years that strictly restrict the import of used cars that cannot pass safety tests and environmental protection standards. This has motivated auto companies to build factories in Africa. There are currently more than a dozen of the world’s automotive companies building plants in South Africa, and Chinese auto companies have also stepped up their efforts to open up markets in Africa.
All these have created market conditions for the demand of the African tire industry. According to the Tire World Network, the International Tire Exhibition held in South Africa attracted exhibitors from many countries including China, South Africa, India, and Germany. Chinese companies participating in the show also grew exponentially.
What tyres do Africa need? According to IHS senior researcher Walt Madeira, as far as light buses are concerned, only two countries in the African region are expected to maintain an average double-digit growth rate by 2027, namely South Africa and Algeria. Others The country’s growth in light vehicles is far behind those of the two countries. It is estimated that by 2027, the sales of cars in both countries may exceed 500,000 vehicles/year.
However, in the past two years, the African automobile market has produced two dark horses: Nigeria and Angola. According to professional forecasts, by 2027, Nigeria's car sales will reach 260,000 vehicles/year. Madeira believes that due to the rapid growth of cars in other countries, the proportion of South Africa's car sales in the entire African region can gradually decline from 40% in 2011 to 32% in 2027.
According to the analysis, in terms of medium/heavy trucks and buses, the differences in various regions in Africa are not significant, but the prospects for new vehicles in Kenya are on the horizon, and it is now entering one of the three major markets in Africa. Ire Global Director Andrej Divis said that by 2027, Kenya is expected to grow by a factor of four on the basis of sales in 2012, and together with Algeria and South Africa, it will become the top three regions in Africa for auto sales.
South Africa to radiation throughout <br> <br> a senior foreign trade insiders say the tire World Network, South Africa is a bridgehead for the entire African market, customs union relationship that exists with other African countries, once the products into South Africa, Chinese enterprises will be able to This is a springboard to open the African market. This is the best entry point for Chinese tire companies to explore the African market.
The reporter was informed that before that, some Chinese tire companies had been optimistic about the South African market. In addition to participating in tire exhibitions, some tire companies set up offices or trading companies here, while others are dedicated to the development of local key distributors. Everyone hopes to use this market to radiate tire products throughout Africa.
Based on South Africa, radiation in Africa, this is a development strategy for many auto companies. It is understood that 26 countries in Africa have jointly established a "Triad Free Trade Area" (TFTA), which is expected to officially start operations after 2017. The ultimate goal of this trade zone is to promote the zero-tariff flow of goods in its member countries. By that time, the cars produced in South Africa are expected to enter the other 25 member states with zero tariffs. For Chinese auto and tire companies, this may be the next tempting market opportunity.
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