Car tires and equipment
Opportunity Brief
Tires are used on a wide range of vehicles, including cars, trucks, motorcycles, and heavy equipment such as excavators and bulldozers Demand for car tires is directly linked to population growth and increased transportation, requiring continuous improvement in the tire industry to meet market needs.
Tire types vary depending on the vehicle type and operating conditions The most prominent of these types are:
- Passenger car tires: Designed to provide driving comfort and the ability to handle high road speeds, they are fuel efficient and perform well on both dry and wet surfaces.
- Truck and Commercial Vehicle Tires: Designed to withstand heavy loads and harsh conditions, they are used on trucks, buses, and other commercial vehicles that require high load bearing capacity and reliable off road performance.
- Heavy Equipment Tires: Used on excavators, bulldozers, cranes, and other heavy equipment operating in harsh environments such as construction sites and mines, these tires are known for their ability to withstand impact and harsh conditions.
- Airless tires: A new technology that is beginning to spread in some applications, airless tires are manufactured without internal air These tires offer multiple benefits in terms of reducing maintenance and the risks associated with traditional tire punctures.
Investment Opportunity Drivers Global Perspectives
- The growth in the automotive and transportation sector is increasing with the increasing population growth and purchasing power, and with the increasing number of cars in Egypt, which leads to an increase in demand for tires The total number of licensed vehicles in the governorates of the Republic reached about 9.95 million vehicles at the end of 2023 including 5.6 million four wheel passenger cars The average lifespan of tires is two years, so approximately
11-11.5 million tires for passenger cars need to be replaced annually, which is a huge number worth investing in. - The large and growing demand in the local market is due to the interest in the automotive tire and equipment industry, with the average increase in demand during the period from 2019 to 2023 reaching approximately 9-10%
- There is a limited industrial base for truck and heavy equipment tires such as the Prometeon Group, and there are some Egyptian companies that manufacture some small tires used in motorcycles, such as the Pyramids Tire Factory.
- Annual import volume ranges between 540-550 million during the period from 2019 to 2023.
- The general trend around the world is to retread tires by establishing factories that recycle used tires to extract raw materials or produce other products such as rubber asphalt.
- The global automotive tire market was valued at approximately USD 105 billion in 2021 and is expected to reach USD 115 billion by 2027 growing at a CAGR during the forecast period.
- There are good export opportunities in many global markets, given the increase in global demand during the period from 2019 to 2023 which amounted to approximately 6%.
Nominated industrial areas
- Suze Canal Economic zone (SC Zone)
- 10 th of Ramadan industrial Zone
- Industrial Zone in New 6 th of October City
Imports of the Arab Republic of Egypt
(in millions of dollars)
Customs items for opportunity
