An expanding fleet of commercial vehicles, ongoing consumer demand for passenger cars, and increasing auto production will combine to drive the Colombian tire market to more than $1.5 billion USD by 2022, according to a new report. The study, released this month by New York-based research firm TechSci Research, also cites “favorable government policies” for the continued growth that will bring the industry to new highs in each of the next five years.
Ongoing infrastructure spending, which is expected to ramp up even further in 2017 and beyond as the government implements more projects within its so-called 4G road expansion plan, is another factor expected to push the market higher.
“The government as well as private investors are investing heavily in various infrastructural and development projects,” said Karan Chechi, research director with TechSci Research. “Thus, the need for commercial vehicles is anticipated to increase as they play a vital role in transportation of raw materials.”
TechSci Research, in its “Colombia Tire Market Forecast & Opportunities, 2022,” says that the Colombia’s central region, where more than eight million people live in Bogotá alone, secured the largest share of the national market last year. Its forecast doesn’t expect this “dominance” to change given the volume of economic activity and cultural significance of the capital.
Goodyear, Michelin, Hankook, and Toyo are four of the major players in the market, with the radial tires that they, and others, produce being the most popular type of tire sold. The report attributes this popularity to the mileage, fuel consumption, and road grip benefits generally offered by radial tires.