Iran’s tyre market is expected to grow at a compound annual growth rate (CAGR) of over 12 per cent over the next five years, according to a new report from TechSci Research, a research-based global management consulting firm.

The report, titled "Iran Tyre Market Forecast & Opportunities, 2021", highlights the anticipated growth in automobile production and sales as one of the major factors behind the expected boost in tyre sales over the next five years in the country.

Moreover, lifting of sanctions by the western countries and anticipated economic revival in Iran are further projected to increase the demand for tyres through 2021, said the report.

The UN Security Council and P5+1 nations (China, France, Russia, UK, US, and Germany) imposed various sanctions on the country after Iran refused to suspend its uranium enrichment programme.

The freedom to export and import automobiles and tyres was restricted for Iran with the imposition of these sanctions. However, due to multilateral talks between Iran and P5+1 nations, most of the sanctions on the country have been lifted, and a Joint Comprehensive Plan of Action (JCPoA) has been signed by both the sides in July 2015. This move is expected to boost the automobile as well as tyre market in Iran in the coming years, added the report.

The construction sector in Iran is forecast to grow during 2016-2021, which is being backed by various major projects slated for completion in the coming years and having a cumulative worth of $200 billion, it said.

Additionally, housing demand in the country is forecast to reach 1.2 million units by 2020. Besides that, the country's motorisation rate, which stood at 170 vehicles per 1000 individuals in 2014, is expected to grow in the coming years, with the overall automobile fleet in the country having increased at a CAGR of 5.75 per cent during 2010-2014. All these factors are expected to positively influence the tyre market in Iran over the next five years, it added.

Karan Chechi, research director at TechSci Research, said: “Barez, Goldstone, Yazd and Kavir are few of the major domestic tyre manufacturing companies, while Hankook, Kumho, Continental, Bridgestone and Michelin are the major global tyre companies operating in Iran.”

“Owing to restrictions on the operations of various major international tyre brands in Iran, domestic tyre brands dominated the country's market during 2011-2015. However, with the lifting of sanctions, various global companies are planning to enter or re-enter the country's tyre market, which is a huge positive for the country's automobile industry, including the tyre market,” he added. – TradeArabia News Service