Brazilian tire market saw 40% import upswing in 2024

Despite a surge in vehicle production and domestic sales, tire manufacturers in Brazil are grappling with a sharp decline in sales, particularly in the car, light commercial vehicle, and motorcycle segments.

An industry report by Anip, the National Association of the Tire Industry, reveals a significant downturn, with total tire sales dropping to 16.52 million units in the first four months of this year, marking an 11.9% decrease compared to the same period in 2023, when 18.4 million units were sold.

Sales to automakers witnessed a 10.3% decline, plummeting from 4.47 million to 4.01 million tires, while the replacement market experienced a 10.2% decrease, dropping from 13.93 million to 12.51 million units.

Anip’s survey, based on Comex data, also sheds light on the industry’s foreign trade, which reported a deficit of US$314 million in the first four months of 2024. This figure starkly contrasts with the US$162.4 million deficit recorded during the same period last year and the US$49.1 million deficit in 2022.

In terms of value, tire imports surged by 19.5% this year, rising from US$560.9 million to US$670.5 million. Conversely, exports witnessed a 10.6% decline, dropping from US$398.5 million to US$356.5 million.

Notably, the volume of tire imports soared by 40%, from 13.9 million units to 19.47 million units, compared to the first four months of 2023. This represents more than a doubling of import volumes compared to the same period in 2022.

Segment-wise, car tire sales by Brazilian manufacturers saw a 12% decrease, declining from 9.57 million units to 8.43 million units. Business with automakers and the replacement market both witnessed declines of 1.6% and 15.8%, respectively.

However, there was a modest uptick of 1.3% in cargo vehicle tire sales, with transactions to automakers increasing by 15.7% and the replacement market dipping by 3.3%.

Meanwhile, motorcycle tire sales in the replacement market continued their downward trend, dropping by 0.4% from 3.27 million units to 3.25 million units in the first four months of 2024.

Source: Autoindústria

Click here to read the original news article: https://www.autoindustria.com.br/2024/05/24/importacao-de-pneus-cresce-40-no-ano/

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