S04 ATR May 2022 Kenya Report_ATR - New Master Template 2016 26/04/2022 08:38 Page 16
TYRES | REPORT
Treading a fine line Strong competition, new technology advances and environmental pressures are heating up the African tyres market.
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Competition has intensified in recent decades with the arrival of Chinese and other Asian tyre producers.
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frica’s rugged terrain means plenty of challenges for manufacturers producing tyres for the agricultural and industrial machinery that underpin key sectors such as farming, mining and construction. These and other industries are integral to the long-term development of Africa’s economy. Other key tyre markets include passenger cars, motorcycles and offthe-road (OTR) vehicles, as well as truck, bus and trailer tyres. Tyre makers work closely with leading vehicle and equipment brands, such as Cat, JCB and Hitachi, among many others, to produce the best and most robust vehicles for the job. Traditionally a market dominated by European manufacturers, competition has intensified in
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recent decades with the arrival of Chinese and other Asian tyre producers, who are now well established. All are facing up to the mounting challenges posed by climate concerns, with greater emphasis on sustainability and energy-efficient production. New technology is also another area in which competitors seek to gain an edge in what remains a growing and evolving market. Notable players serving this important niche include the likes of
AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MAY 2022
India’s BKT Tires, a leading manufacturer in the off-highway tyre market, specialising in the production of tyres for agricultural, industrial and OTR vehicles. It said recently in a February 2022 investor presentation that it continued to see “strong demand” for its products across all geographies. While Europe remains the group’s largest single market right now, there is clearly huge scope for growth all across Africa. And in terms of sector sales, the
Tyre technology continues to evolve, providing a multitude of additional benefits for end users.”
agricultural market is dominant, another area ripe for longer term development in Africa.
A competitive market Other major players serving this important area include the likes of Michelin, whose presence in Africa dates back to the 1940s. In Central Africa, it has the Société Moderne du Pneumatique Camerounais (SMPC) agency in Douala, Cameroon, and Michelin Tyre Services (MTS) in Lagos, Nigeria, established in 1958 and 1961 respectively. In southern Africa, there is the Michelin Tyre Company South Africa agency in Johannesburg, founded in 1943 but trading officially from 1998. The global brand also has representatives in other African
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