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