PowerPoint PresentatMexico Replacement Tire Market to Grow at 5.94% CAGR by 2026ion

2016–2026 MEXICO REPLACEMENT TIRE MARKET Forecast and Opportunities Published On: August 2021 www.techsciresearch.com MARKET INTELLIGENCE. CONSULTING

Table of Contents S. No. Contents 1. Product Overview 2. Research Methodology 3. Impact of COVID-19 on Mexico Replacement Tire Market 4. Executive Summary 5. Voice of Customer 5.1. Factors Influencing Purchase Decision 5.2. Brand Recall 5.3. Brand Switching 5.4. Brand Switching Attributes 5.5. Brand Satisfaction Level 6. Mexico Replacement Tire Market Outlook 6.1. Market Size & Forecast 6.1.1. By Value & Volume 6.2. Market Share & Forecast 6.2.1. By Vehicle Type (Passenger Car, Two-Wheeler, LCV, M&HCV and OTR) 6.2.2. By Tire Construction Type (Radial vs Bias) 6.2.3. By Sales Channel (Online vs Offline) 6.2.4. By Price Segment (Ultra Budget, Budget and Premium) 6.2.5. By Region Automotive © TechSci Research 2

Table of Contents S. No. Contents 6.2.6. By Top 10 Cities (2020) 6.2.7. By Company (2020) 6.2.8. By Tier Type (2020) 6.3. Market Map (By Vehicle Type, By Region) 7. Mexico Passenger Car Replacement Tire Market Outlook 7.1. Market Size & Forecast 7.1.1. By Value & Volume 7.2. Market Share & Forecast 7.2.1. By Vehicle Category (Hatchback, Sedan and SUV/MPV) 7.2.2. By Tire Construction Type 7.2.3. By Sales Channel 7.2.4. By Rim Size 7.2.5. By Price Segment 7.3. Prominent Tire Sizes 7.4. Market Map (By Vehicle Category) 8. Mexico LCV Replacement Tire Market Outlook 8.1. Market Size & Forecast 8.1.1. By Value & Volume 8.2. Market Share & Forecast 8.2.1. By Vehicle Category (Pickup Truck, Panel Van and Light Bus) 8.2.2. By Tire Construction Type Automotive © TechSci Research 3

Table of Contents S. No. Contents 8.2.3. By Sales Channel 8.2.4. By Rim Size 8.2.5. Price Segment 8.3. Prominent Tire Sizes 8.4. Market Map (By Vehicle Category) 9. Mexico Two-Wheeler Replacement Tire Market Outlook 9.1. Market Size & Forecast 9.1.1. By Value & Volume 9.2. Market Share & Forecast 9.2.1. By Vehicle Category (Motorcycle and Scooters/Mopeds) 9.2.2. By Tire Construction Type 9.2.3. By Sales Channel 9.2.4. By Rim Size 9.2.5. By Price Segment 9.3. Prominent Tire Sizes 9.4. Market Map (By Vehicle Category) 10. Mexico M&HCV Replacement Tire Market Outlook 10.1. Market Size & Forecast 10.1.1. By Value & Volume 10.2. Market Share & Forecast 10.2.1. By Vehicle Category (Truck, Bus and Heavy Truck) 10.2.2. By Tire Construction Type 10.2.2.1. By Vehicle Category (Truck and Bus) Automotive © TechSci Research 4

Table of Contents S. No. Contents 9.2.3. By Sales Channel 9.2.4. By Rim Size 9.2.5. By Price Segment 9.3. Prominent Tire Sizes 9.4. Market Map (By Vehicle Category) 11. Mexico OTR Replacement Tire Market Outlook 11.1. Market Size & Forecast 11.1.1. By Value & Volume 11.2. Market Share & Forecast By Vehicle Category (Tractors & Harvesters, Dump Trucks/Tipper Trucks, Hauler 11.2.1. Trucks, Loader-Dozer-Excavators & Graders; Forklift & Telehandler, Cargo Trucks, Mobile Cranes and Others) 11.2.2. By Application (Mining, Construction, Industrial, Agriculture, Forestry, Ports, and Others) 11.2.3. By Tire Construction Type 11.2.4. By Sales Channel 11.2.5. By Rim Size 11.2.6. By Price Segment 11.3. Prominent Tire Sizes 11.4. Market Map (By Application) Automotive © TechSci Research 5

Table of Contents S. No. Contents 12. Import - Export Analysis 13. Market Dynamics 13.1. Drivers 13.2. Challenges 14. Market Trends and Developments 15. Supply Chain Analysis 16. List of Prominent Dealers & Distributors 17. Policy & Regulatory Landscape 18. Mexico Economic Profile 19. Competitive Landscape 19.1. Bridgestone de Mexico SA de CV 19.2. Industrias Michelin, S.AdeC.V. 19.3. Hankook Tire de Mexico, S.A de C.V. 19.4. Goodyear Servicios Comerciales, S.de R.L. de C.V. 19.5. PIRELLI NEUMÁTICOS DE MÉXICO, SA DE CV 19.6. Continental Tire de Mexico S.A. de C.V. 19.7. Yokohama Tire Mexico (YTMX) 19.8. NT MEXICO S.DE R.L. DE C.V (México) (Toyo Tires) 19.9. Westlake México (Hangzhou Zhongce Rubber Company) 19.10. JK TORNEL SA de CV 20. Strategic Recommendations 21. About Us & Disclaimer Automotive © TechSci Research 6

PRODUCT OVERVIEW

Scope of Report Product of Interest (POI): Tire Tire is a ring like component that encircles the vehicle’s rim and meets the ground. Tires are filled with compressed air to provide a gripping surface for traction on the surface over which the vehicle travels. Most vehicles are equipped with pneumatic tires where air is held under pressure inside the tire. Since tire production began, natural rubber is extensively used in fabrication of tires. However, the modern tires make use of materials like synthetic rubber, fabric, steel wires, carbon black, etc. adding advanced characteristics to thetires. Market Segmentation VEHICLE TYPE TIRE CONSTRUCTION • Passenger Car TYPE Year Range MEXICO REPLACEMENT TIRE MARKET • Light Commercial • Radial Vehicle (LCV) • Bias Review Period • Medium and Heavy SALES CHANNEL Commercial Vehicle • Offline 2016 – 2019 (M&HCV) • Online Base Year • Off the Road (OTR) 2020 • Two-Wheeler Estimated Year REGION PRICE SEGMENT • Central Mexico 2021 • Ultra Budget • Central North Forecast Period • Budget • North 2022 – 2026 • Premium • South Mexico 8 Automotive © TechSci Research 8

RESEARCH METHODOLOGY

Research Methodology Market Profiling •In-depth secondary research was conducted to determine top players in the Mexico Data Data Filter Research & Actionable Business Replacement Tire market, overall market size Collection & Analysis Intelligence Insights Solution and segmental market size. Formulating Questionnaire •In order to conduct industry experts’ interviews, TechSci formulated a detailed questionnaire. ❑ Identifying Key Opinion Leaders Developing List of Respondents ❑ Questionnaire Design ❑ In-depth Interviews A ❑ Recent •List of industry players and industry specialists Primary Developments was developed. Research B ❑ Market Changing Aspects/Dynamics Desk ❑ Government Data Collection C Research Policies Company ❑ Final Conclusion •TechSci conducted interviews with industry Analysis experts and industry players for data collection ❑ Market Participants and verification. ❑ Key Strengths Data Validation •Data obtained as a result of primary and Primary Secondary Paid Sources secondary research was validated through Research Research rigorous triangulation. ❑ LinkedIn ❑ Company Website ❑ Factiva ❑ TechSci Internal ❑ Company Annual ❑ Hoovers Data Analysis Database Reports ❑ White Paper Study ❑ Financial Reports •The data was scrutinized using MS-Excel and ❑ Investor statistical tools, such as Time Series Analysis, Presentations ❑ Regulatory Body etc. to obtain qualitative and quantitative ❑ Associations, etc. insights about the Mexico Replacement Tire market. 10 Automotive © TechSci Research 10

Research Methodology Baseline Methodology: For the study, TechSci Research gathered information through primary research surveys with leading tire OEMs operating across the country. We also put through an exhaustive search of credible paid databases, such as Business Week, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudently evaluated all the collected information and presented the same in chronological order to depict a meaningful and clear picture of the Mexico Replacement Tire market. While compiling the data, we have also cross checked all the collected information from multiple sources and data warehouses, so as to present the most accurate and precise information of the concerned industry. All the data representation done here is in calendar year period, starting from 1st January 2020 to 31st December 2020 until mentioned otherwise. Primary Research – Partial List of Companies Interviewed Few Sources of Secondary Research S. No. Company/Dealers & Distributor Names S. No. Secondary Sources 1. Bridgestone de Mexico SA de CV 2. Industrias Michelin, S.AdeC.V. 1. OICA 3. Hankook Tire de Mexico, S.A de C.V. 4. Goodyear Servicios Comerciales, S.de R.L. de C.V. 2. World Bank 5. PIRELLI NEUMÁTICOS DE MÉXICO, SA DE CV 3. INEGI 6. Continental Tire de Mexico S.A. de C.V. 7. Yokohama Tire Mexico (YTMX) 4. Industry Magazines 8. NT MEXICO S.DE R.L. DE C.V (México) (Toyo Tires) 5. Credible Paid Database 9. Westlake México (Hangzhou Zhongce Rubber Company) 10. JK TORNEL SA de CV 11 Automotive © TechSci Research 11

Research Methodology Vehicle Production, Sales & Fleet Size Basic data points needed for analysis of Mexico Replacement Tire market are the historical, current and forecast figures for vehicle production, sales and fleet size. Data for vehicle sales and fleet size has been extracted through various secondary sources and credible data portals. TechSci Research has also maintained a database for vehicle sales and fleet size for two- wheelers, which is regularly updated through various primary research surveys and secondary sources such as tire associations &governmentpublications. Tire Demand ReplacementTireSales Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet size and historical vehicle sales. Replacement tire demand is calculated by multiplying vehicle fleet with replacement tire ratio, which is obtained by conducting a series of surveys with car owners to understand the frequency of tire replacement, as it varies for different countries depending upon the country’s road conditions, climate, economic and regulatory policies, etc. The replacement ratio is expressed as a percentage. For example, in case of two-wheeler, replacement ratio is considered to be 100% if two tires are replaced per vehicle per year. For instance, for two-wheeler replacement tire demand calculation: Two-wheeler Fleet X Replacement Ratio X No. of Tires = Replacement Size (Volume) (%) Tire Demand 100,000 X 19% X 2 = 38,000 Tires The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique, i.e., multiple rounds of telephonic interviews with tire companies/dealers in Mexico. The information collected is then cross-verified through industry experts and secondary sources, such as annual reports and paid databases to generate meaningful results. Total Replacement Tire Market Forecast Forecast For forecasting the numbers, we have used time series analysis along with regression analysis, followed by judgmental analysis. 12 Automotive © TechSci Research 12

Industry Brief According to TechSci Research report “Mexico Replacement Tire Market, By Vehicle Type (Passenger Car, Two-Wheeler, LCV, M&HCV and OTR), By Tire Construction Type (Radial vs Bias), By Sales Channel (Online vs Offline), By Price Segment (Ultra Budget, Budget and Premium), By Region (Central Mexico, Central North Mexico, North Mexico, South Mexico), By Top 10 Cities, By Company, By Tier Type Forecast & Opportunities, 2026”, Mexico replacement tire market is anticipated to be valued around USD6.75 billion by 2026. Tire is a ring like component that encircles the vehicle’s rim and meets the ground. Tires are filled with compressed air to provide a gripping surface for traction on the surface over which the vehicle travels. Most vehicles are equipped with pneumatic tires where the air is held under pressure inside the tire. Natural rubber is extensively used in the fabrication of tires since the tire production began. However, the modern tires make use of materials like synthetic rubber, fabric, steel wires, carbon black, etc. adding advanced characteristics to the tires. These tires are replaced by new tires when the company fitted tires wear out after continuous usage. Replacement tires are commonly known as aftermarket tires as these tires are purchased by consumers for replacing the company fitted Original Equipment (OE) tires. Replacement tires overcome the limitations of OEM tires, by giving the consumer the option of customizing the vehicle to benefit his or her needs for superior driving experience over comfort. Growth in the Mexico replacement tire market is driven by increasing fleet and prolonged use of large fleet size which leads to high tire replacement ratio of automobiles in the country. High replacement rate is being witnessed due to poor infrastructure in rural areas across Mexico. Moreover, the average life of automobiles across the country has been increasing due to technological advancements and competitions among automotive manufactures, resulting in growing need of replacement tires. Use of automobiles on bad road conditions result in early diminishing of tire tread, which is leading to higher aftermarket demand for tires in the country. As most of the population in the country prefers to travel by their personal vehicles instead of using public transportation services, it directly results in generating high demand for replacement tires in Mexico. Increase in the fleet size of vehicles is boosting the after-market demand for tires in Mexico. Rise in per capita income has led to increase in the purchasing power as well as growth in the living standard of Mexico’s population. This is resulting in growth of vehicle sales as well as expansion of fleet size, leading to growth in the replacement demand for tires in Mexico. Growing sales of replacement tires in the country can also be attributed to increasing number of construction activities and flourishing mining sector, which is driving the sales of OTR replacement tires. According to the Oxford Business Group, a total of around 41.4 million tourists visited the country in year 2018. These significant number of tourists reflect a total of 5.5% increase from the number of people visited the country in year 2017. The growing tourism industry in the country needs increasing number of hotels for the tourists to stay, alongside better road infrastructure and connectivity is also required for safe and comfortable travel. According to the Executive Summary report of Tourism Policy Review of Mexico, Tourism industry of the country is a heavy contributor to the GDP, accounting 8.7% of the nation’s GDP. Since, tourism is contributing heavily to the economic growth of the country, the construction industry has grown at a robust pace over the past years. Heavy equipment machineries like excavators, backhoe loaders, bulldozers, wheel tractor and scrapers are increasing used for construction purposes, sales of these construction machineries have witnessed an increasing growth over the past few years. Since, the construction machineries performs off-road duty work, these machineries are equipped with OTR tires. The increasing use of construction machineries in the country is wearing out the company fitted Original Equipment Tires, driving the Mexico replacement tire market. Mexico replacement tire market can be segmented based by vehicle type, by tire construction type, by sales channel, by price segment, by region, by top 10 cities, by company, and by tier type. Based on tire construction type, the Mexico replacement tire market is segmented into Bias tires and Radial tires. The market share of bias category is higher than that of radial category. Radial OTR tire penetration in the market is gaining momentum across the country, due to features such as better control, high durability and better fuel efficiency as well as enhanced load carrying capacity. Owing to this, the demand for radial OTR replacement tires is expected to evolve over the next five years. “In 2020, Central México accounted for the largest market share, i.e., 40.16% in Mexico replacement tire market. The region is expected to maintain its dominance over the next five years as well, but Central North México is giving neck to neck competition. High tire replacement ratio is boosting the demand for replacement tires in the country.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm. Automotive © TechSci Research 13

Sample Data -Snapshot Mexico Replacement Tire Market Size, By Value (USD Billion), By Volume (Million Units), 2016-2026F CAGR 2016-2020 CAGR 2021E-2026F By Value: xx% By Value: xx% By Volume: xx% By Volume: xx% 8.00 60.00 7.00 50.00 6.00 40.00 5.00 4.00 30.00 3.00 20.00 2.00 10.00 1.00 0.00 - 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Value (USD Billion) Volume (Million Units) Mexico Replacement Tire Market Share, By Vehicle Type, By Volume, 2016–2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Passenger Car 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% LCV 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% Two-Wheeler 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% M&HCV 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% OTR 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% Mexico OTR Replacement Tire Market Share, By Tire Construction Type, By Volume, 2016–2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Bias 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Radial 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Automotive © TechSci Research 14

Report Ordering Report Name: MEXICO REPLACEMENT TIRE MARKET Forecast and Opportunities 2016–2026 License Type Price Single User License $3500 Multi-User License $4500 Custom Research License $7500 To View Sample OR Purchase Report Automotive © TechSci Research 15

About Us & Disclaimer TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in numberof areas to organizations. The company uses innovative business models that focus on improving 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. Related Reports • MexicoOTRTireMarket,ByApplicationType(Agriculture,Construction, Mining, Material Handling, Ports, Forestry), By Demand Category (Replacement, OEM),ByRimSize(Upto25’’, Above25”),ByTireConstruction(Radial,Bias), ByCompanyandByRegion,CompetitionForecast&Opportunities,2026. • Philippines Tire Market By Vehicle Type (Two-Wheeler, Commercial Vehicle and Passenger Car), By Demand Category (Replacement and OEM), By Region, Competition Forecast & Opportunities, 2026. • Saudi Arabia Tire Market, By Vehicle Type (Passenger Car, LCV, M&HCV, OTR, and Two-wheeler), By Radial Vs Bias, By Online vs Offline Sales Channel, Competition, Forecast&Opportunities, 2026. TechSci Research – North America TechSci Research – Europe TechSci Research – Asia-Pacific 708 Third Avenue, Manhattan, 54, Old brook, Bretton, B – 44, Sector – 57, Noida, National Capital New York, United States Peterborough, Region, U.P. - India Tel: +1- 646- 360- 1656 United Kingdom Tel: +91-120-4523900 Email: [email protected] Email: [email protected] Email: [email protected] www.techsciresearch.com www.techsciresearch.com www.techsciresearch.com 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 that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information 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 it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.