Demand for tires and tubes is set to grow by 12 percent annually in Saudi Arabia, researchandmarkets.com said in its latest report on the automotive tire industry in the Kingdom. Being the largest market for automotive tires in the Middle East, Saudi Arabia still imports them to satiate its needs, it said. It runs up almost $800 million in imported tire bills alone on a yearly basis. Businessmen in the Saudi tire industry said although the tire prices are rising, domestic demand in the Kingdom has not gone down. The Kingdom imports 13 million tires every year and volumes are expected to keep on rising as consumer demand increases over the next few years. The major products include tires (passenger, truck, bus, trailers), tires (OTR, agricultural, industrial/ TBR), rims, tubes and casings, tire repair material, patches, retreading material and equipment. A largely import-driven market, the Saudi market is a magnet for leading international brands, with Japanese and American tire majors leading the way, followed by a strong representation from European and Asian brands. All tires imported into Saudi Arabia have to pass the stringent safety specifications laid down by the Saudi Arabian Standards Organization, before they can be marketed in the Kingdom. Major companies reigning the market currently are Yokohama, Bridgestone, Hankook, and Michelin. In 2010, Japanese manufacturers topped the list of suppliers with a 41 percent share of the Saudi import market, while US companies came in fourth place after South Korea and China. There are approximately 60 tire brands sold in Saudi Arabia, half of which are well-known brands sourced from companies in the US, Japan, South Korea, China, Indonesia, Turkey, India and Europe. Demand is expected to remain high for temperature and traction passenger car tires since they can withstand Saudi Arabia's climate.
