Iran is expected to see its tyre sales grow at a compound annual growth rate (CAGR) of over 12 per cent from 2015 to 2020, according to recently released report by TechSci Research, a research based global management consulting firm.

The report titled "Iran Tyre Market Forecast & Opportunities, 2020 '', highlights factors such as the easing of nuclear sanctions, revival of the automobile sector and the anticipated return of tyre majors to Iran to drive the tyre sales in the country.

The report has evaluated the future growth potential of Iran tyre market and provides statistics and information on market structure, imports and future growth of Iran tyre market, it said.

The report is intended to provide market intelligence and help decision makers take sound investment evaluation. Besides, it also identifies and analyses the emerging trends along with essential drivers, challenges and opportunities available in the Iran tyre industry, it added.

Owing to restrictions on the operations of various major international tyre brands in Iran, domestic tyre brands like Barez tyre, Yazd tyre, Kavir tyre, Goldstone tyre, etc. have been dominating the country's tyre market over the last few years, said the report.

Signing of a Joint Comprehensive Plan of Action (JCPOA) between Iran and P5 countries on July 14, in Austria is expected to stimulate economic activity in the country over the next five years, and is expected to hugely benefit the automobile and tyre industry in Iran through 2020.

The tyre market in Iran is concentrated majorly in Tehran and Kermanshah regions, it said.

Tehran is the economic centre of Iran and about 50 per cent of the automobiles sold in Iran every year are registered there. Whereas, about 50 per cent of Iran's onshore oil reserves are located in Khuzestan basin in Kermanshah region, it added.

Karan Chechi, research director with TechSci Research, said: “Passenger car tyre segment remains the most dominant segment in the tyre market in Iran.”

“The trend is expected to continue over the forecast period as well. In 2014, more than two-third of the country's tyre market was accounted for by passenger car segment,” he said.

“Moreover, the passenger car tyre segment is dominated by Sedan cars tyres, and this trend is expected to continue in Iran during the forecast period,” he added. – TradeArabia News Service