RJA September 2013 -Country Focus Iran

Rubber Journal Asia Country Focus

Tyre sector in Iran

by Hooman Tootoonchi, Pars Tire Company, Iran

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Automobile industry of Iran ran’s economy is one of a few economies in the world that remained unscathed during the 20072009 recession, helped mainly by the country’s oil and gas sector. In 2010, oil and gas exports from Iran constituted 60% of government revenue. The country was the fourth largest oil producer in the world in 2011 and its petrochemical segment has a high capacity.

The automobile industry trails after the oil industry, with 1,648,505 cars produced in the country, making it the 13th largest maker of cars globally and the leader in the Middle East.

In 2009, Iran ranked fifth, with respect to the growth rate of the global car industry, after China, Taiwan, Romania and India, with an average of 200 cars per 1,000 people. Based on the Bureau of Census estimates, Iran has a population of 77 million, with a majority aged between 15-39 years old; and a high literacy rate of the population that is educated up to tertiary level.

iven the growth of the young population in Iran and the very diverse desires for car selection, the automotive industry and its related industries, particularly the tyre sector, have grown. In respect to these conditions, the tyre industry has made investments for enhancing the technical and performance aspects so that it can maintain its position in the competitive global market.

Iran entered the automotive industry more than 50 years ago to manufacture different kinds of automobiles, with the first automobile factory established in the country in 1957. Thus, the first tyre factory was set up in the country by BF Goodrich about 50 years ago.

As Iran is the second biggest country in the Middle East, with an area of 1,698,340 sq km and also due to the growing young population, the tyre industry should be suitably developed, alongside the car industry. Of course, it should be noted that the establishment of the Iran Polymer and Petrochemical Institute and Iran Rubber Industries Research Centre, have helped this industry to grow significantly.

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Companies currently producing tyres in Iran Location

Production

Ardabil

Capacity (tonnes/year)

Technology

Establishment

Company

Bias truck & passenger car tyres; radial passenger car tyres; agricultural tyres

28,500

TRI, Russia

1996

Ortavil Tire

Tehran

Bias truck & passenger car tyres; radial passenger car tyres; agricultural tyres

29,000

General Tire & Rubber, US

1963

Tehran

Bicycle/motorcyle tyres and tubes

16,000

IRC, Japan

1968

Iran Yasa & Rubber

Kerman

Bias truck & passenger car tyres; radial passenger car & truck (allsteel) tyres; agricultural tyres

50,000

Continental, Germany & Marangoni, Italy

1993

Barez

Saveh

Bias truck & passenger car tyres

40,000

Pirelli, Italy

1976

Pars Tire

Shiraz

Bias truck & passenger car tyres; radial passenger car tyres; agricultural tyres

40,000

Bridgestone, Japan

1974

Khozestan

Birjand

Bias truck & passenger car tyres; radial passenger car tyres

25,500

Matador, Slovakia

1998

Kavir Tire

Tehran

Bias truck & passenger car tyres; radial passenger car tyres; agricultural tyres

28,000

BF Goodrich, US

1962

Alborz

Yazd

Bias truck & passenger car tyres; radial passenger car tyres; bicycle and motorcycle tyres

20,000

Vredestein, Netherlands & IRC, Japan

1995

Yazd Tire

Iran Tire

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Rubber Journal Asia Country Focus of bias and radial tyres for cars. One of them has the technology to produce radial tyres for trucks.

The tyre industry is growing in tandem with the car market and it can be noted that there are not enough tyres to supply the market, with imports required.

Due to this, domestic companies like Barez Industrial Group (Kerman), Yazd Tire and Iran Tire have identified development programmes for offsetting this deficiency and are in the midst of implementing these programmes.

Iran’s automotive sector is also focused on enhancing the quality of cars and optimising weight reduction, enhancing the safety, reducing the manufacturing costs and reducing energy.

The country also complies with standards for bus tyres, bias truck tyres and bias wagon tyres. The first standard pertaining to the properties and methods of testing was implemented in 1974. It was revised and is now stated as a Standard No 2169/1.

The standard denotes international references such as TRA, JIS, ISO, FMVSS, ETRTO, ECE, meaning to say that Iran’s tyre industry is not far behind other developed countries.

Iran, the second largest country in the Middle East, entered the automotive industry more than five decades ago, with BF Goodrich as the first tyre factory in the country

Meanwhile, it is predicted that the number of cars in Iran will total more than 30 million by the end of 2021. Thus, with the growth of the automobile industry, increasing affluence of the population and import of various cars into the country, the demand for tyres is expected to increase.

Conclusion ran has a huge potential for growth in its tyre market and is an attractive prospect for joint ventures to set up facilities due to: • Lack of investments in the tyre industry • Vastness of the country • Reliance on road transport as the main

transportation system • An educated young population • Relatively low costs for establishing production facilities • Proximity to other markets in the Middle East It is forecast that automobile production will reach 11.6 million vehicles/year, with 1 million vehicles/year to be imported – this volume of growth will surely require tyres and is a ripe market for further growth, compared to the saturated market in developed countries.

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Burgeoning tyre market ran experiences diverse weather conditions, with temperatures ranging from -30°C (in Ardabil) to +60°C (in some areas of the south and central deserts of Iran). The weather conditions require consistent tyre technology. Besides this, about 80% of travel is undertaken by road, due to the limited capacity of the railway network as well as the vast geographical layout of the cities and villages.

Therefore, since road transport is the main economical vein of the country, the transport industry has consistently maintained its growth in terms of quality and quantity, n otwithstanding the various challenges that arose as a result of eight years of internal/external strife in the recent years. For instance, during the Islamic revolution the production of tyres was only 1,000 tonnes, but in 2007, it was more than 238,000 tonnes.

Nine companies are active in the production of tyres and tubes, with eight companies having different tonnages Heavy and light truck tyre market in Iran for the production

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