info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from Africa Business
The African continent is currently one of the fastest growing markets in the global tire industry. The rapid growth of the middle class in African countries has pushed car demand to record highs, creating a growing tire market that includes: passenger car tyres, off-the-road tyres, industrial tyres, agricultural tyres, truck, bus and trailer tyres as well as motorcycle and bicycle tyres.
The rising demand for tyres in Africa has led to stiff competition between tyre manufacturers from all across the world seeking to garner a major share of the market for tyres in the new and emerging African markets. Traditionally, European tyre manufactaures had had a monopoly over the African markets and many European brands were top selling tyres in many African countries.
However, Chinese tires are increasingly popular in the African market. Many African developing countries prefer to import low-priced Chinese tires instead of expensive European and American brands. Therefore, China has recently become a major tire exporter in many African countries.
It is reported that there is a marked increase in the dumping of Chinese tyres.From 2000 to 2010, the imports of passenger vehicle tyres increased by 100 percent from one million to two million per year, while the imports of commercial tyres Grew from 200 000 to just less than 840 000.
To a certain extent, Chinese tyre manufacturers have, in a way, broken the myth about European technological superiority by producing high quality tyres at fraction of the cost. The European brands, used to charging high prices for their products, have finally been challenged and are now being forced to roll back their profit margins and compete with Chinese manufacturers.
