BURNABY, British Columbia—The Russian tire market is expected to grow at a compound annual rate of approximately 13 percent by volume through 2018, according to a report produced by TechSci Research, a global market research and consulting company based in Burnaby.
Russia's tire market growth will continue to be driven by the passenger car segment, which accounted for the majority share of expansion in the country's tire market during 2012, according to the report, "Russia Tyre Market Forecast & Opportunities—2018."
The tire market also is witnessing high growth in the OTR segment as a result of growth in Russia's mining industry, the report said, with several companies such as Bridgestone Corp., JSC Belshina Belarus Tyre Works, Yokohama Rubber Co. Ltd. and JSC Nizhnekamskshina increasing their focus on this segment.
Russia is the one of the best performing economies in Europe, the report noted, with rapidly growing disposable income. However, vehicle density is very low, with only 290 cars per 1,000 people during 2012. This low density is taken as indicating a scope for growth, the firm said.
As a result, several foreign automobile manufacturers are focusing on setting up new plants in Russia or expanding their existing production capacity. The growth in the country's automotive industry would directly boost the tire market, the report concluded.
The report is being marketed by Research and Markets, a Dublin, Ireland-based market research firm.
The 95-page report costs between $1,622 to $4,561, depending on format and usage.