Latin America Tire Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Latin America Tire Market Growth

In Latin America, electric vehicle sales approached 90,000 units in 2023, with Brazil, Colombia, Costa Rica, and Mexico at the forefront of this trend. In Brazil alone, electric vehicle registrations nearly tripled compared to the previous year, surpassing 50,000 and achieving a market share of 3%. Tires designed for electric vehicles are specifically developed to address the unique challenges posed by electric mobility, such as accommodating increased weight, enhancing energy efficiency, minimising noise, and ensuring long-lasting durability. These specialised tires are essential for improving the overall performance, safety, and efficiency of electric vehicles.

The mining sector in the region, especially in nations such as Chile and Peru, demands strong and resilient tires for heavy-duty mining equipment, which, in turn, supports the requirement for off-the-road (OTR) tires. Latin America plays a pivotal role in the production of essential minerals necessary for clean energy transitions, showcasing substantial opportunities for growth within the mining sector. The region contributes to 40% of the world's copper output, with Chile leading at 27%, followed by Peru at 10% and Mexico at 3%. Additionally, Latin America possesses over half of the global lithium reserves, predominantly found in Argentina (21%) and Chile (11%). In addition to copper and lithium, the region also has considerable potential for the production of graphite, nickel, manganese, and rare earth elements.

Key Trends and Developments

Growth of the automotive sector, rising infrastructural development, technological advancements, increasing demand for tires in the agriculture sector, and the expansion of retail market are the major trends impacting the Latin America tire market growth

July 2021

Sumitomo Rubber Industries, Ltd. decided to invest a total of 1.064 billion Reals (approximately 23.5 billion Yen) to enhance tire production capacity at its group’s manufacturing facility in Brazil.

Sep 2022

Bridgestone decided to allocate an additional R$ 270 million towards the expansion and modernisation of its tire manufacturing facility located in Camaçari, Brazil, with the aim of producing high-performance tires for passenger cars, SUVs, and pickup trucks.

July 2024

Trelleborg Tires and John Deere, both prominent leaders in the agricultural sector established a partnership to distribute Trelleborg tires via John Deere dealerships across Brazil.

Growth of the Automotive Sector

The growth of the automotive sector in Latin America, particularly in countries like Brazil, Mexico, and Argentina, acts as a significant driver for the market. As vehicle production escalates, the demand for tires also experiences a notable increase.

Rising Infrastructural Development

The demand for heavy-duty tires utilised in construction vehicles and equipment is being propelled by extensive infrastructure projects, including road construction and maintenance.

Technological Advancements

Innovations in tire technology, particularly the creation of intelligent tires equipped with integrated sensors for real-time monitoring, are drawing the attention of consumers seeking improved safety and performance.

Growing Demand for Tires in the Agriculture Sector

The flourishing agricultural sector in Latin America necessitates a consistent availability of specialised tires for tractors, harvesters, and various agricultural machinery, thereby fuelling demand for agricultural tires.

Expansion of the Retail Market

The expansion of specialised tire retail chains and service centres throughout Latin America is enhancing consumer access to a diverse array of tire brands and types, thereby fostering the market expansion.

Latin America Tire Market Trends

The demand for heavy-duty tires utilised in construction vehicles and equipment is experiencing significant growth, driven primarily by extensive infrastructure projects that are currently underway, particularly in the realm of road construction and maintenance.

As governments and private entities invest heavily in the enhancement and expansion of road networks throughout Latin America, there is a corresponding increase in vehicle usage and mobility across the region. This surge in activity not only facilitates the movement of goods and people but also necessitates the deployment of a wide array of construction vehicles and heavy machinery.

Latin America Tire Industry Segmentation

Latin America Tire Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Design

• Radial
• Bias

Market Breakup by Type

• Tube Tire
• Tubeless Tire

Market Breakup by Season Type

• Winter Tire
• Summer Tire
• All Season Tire

Market Breakup by Vehicle Type

• Two-Wheeler and Three-Wheeler
• Passenger Vehicle
• Heavy Commercial Vehicle
• Light and Medium Commercial Vehicle
• Others

Market Breakup by Sales Channel

• OEM
• Aftermarket

Market Breakup by Country

• Brazil
• Mexico
• Argentina
• Others

Latin America Tire Market Share

Based on the sales channel, the market segmentation includes OEM and aftermarket. The aftermarket segment is projected to grow at a CAGR of 4.4% during the forecast period of 2024-2032. The tire aftermarket includes the replacement, repair, and improvement of vehicle tires following the initial purchase. The sector plays a crucial role in ensuring vehicle performance, safety, and comfort.

Leading Companies in the Latin America Tire Market

Major players are focusing on the manufacturing of sustainable and fuel-efficient tires to gain a competitive edge in the market.

• Bridgestone Corporation
• Continental AG
• Sumitomo Rubber Industries, Ltd.
• The Goodyear Tire & Rubber Company
• Hankook Tire & Technology Co., Ltd.
• Pirelli & CSpA
• Michelin Group
• AEOLUS TYRE Co. Ltd.
• JK Tyre & Industries Ltd.
• Apollo Tyres Ltd.
• The Yokohama Rubber Co., Ltd.
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.