Already a flourishing market, tire sales in the Middle East are poised for growth, driven by the high GDP of Middle Eastern countries, rising population and government investments in road infrastructure.
Looking forward, expect a further boost to the car tire aftermarket - with even more road projects planned for the UAE, and more car manufacturers setting up shop in Saudi Arabia. This means the aftermarket is all set to benefit from the overall growth of the automotive sector.
But who is gaining and why?
Market share is definitely shifting between the brands that sell tires in the Middle East. Tier 1 brands, for instance, are losing share to tier 2 and tier 3, but they are gaining share during the peak seasons by using promotions.
Prachi Satoskar, the Head of Automotive at GfK in United Arab Emirates, said, "It's promotions that are driving the market - particularly during the first quarter of 2015. Manufacturers are using promotions to attract the wholesalers and retailers and thus gain share and increase their distribution. This, of course, leads to a price war in the market."
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Prachi Satoskar is Head of Automotive at GfK in United Arab Emirates. To learn more about our panel, contact us here.