Who Owns Whom

The Tyre Industry in South Africa

Stephen Timm | South Africa | 12 September 2021

The Tyre Industry in South Africa

Sales of locally-manufactured tyres plunged by more than 20% in 2020. While local production declined during the pandemic, it has fallen year on year since 2015, despite significant investment by local manufacturers. The sector faces a number of challenges, from growing imports and illegal import practices such as under-invoicing, a carbon tax which came into effect in 2019 and recent raw materials increases which have added to costs. Another key challenge is the improper processing of waste tyres, which has led to millions of unsafe second-hand tyres being sold locally.

Recycling Issues

The government’s waste tyre recycling programme is being handled by the Waste Tyre Bureau until the new industry waste tyre management plan is approved, after the Recycling and Economic Development Initiative of South Africa (Redisa) was placed in provisional liquidation in 2017. Under the current plan, a levy on each newly purchased tyre funds recycling, but tyre manufacturers say the system has broken down and led to tyres being stockpiled.

Research and Development

Current research priorities include meeting fuel-efficiency goals particularly for electric vehicles. New technologies are reducing tyre weight and saving fuel, as well as smart tyres with embedded sensors. Tyre wear prediction technology will allow for early damage detection. Nitrogen-filled tyres are being considered for mining and commercial vehicles that operate in extreme temperatures.

Report Coverage

This report focuses on the tyre industry in South Africa including the manufacture and retail of tyres. It includes comprehensive information on the size and state of the industry, trade and investment, and influencing factors. There are profiles of 17 companies including the major manufacturers Bridgestone, Continental, Goodyear and Sumitomo, tyre retailers such as Hi-Q and TrenTyre and other companies such as Bandag, which makes rubber retread products.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Trade 11
4.1.2. Corporate Actions 18
4.1.3. Regulations 18
4.1.4. Enterprise Development and Social Economic Development 21
4.2. Continental 22
4.3. International 24
5. INFLUENCING FACTORS 29
5.1. Coronavirus 29
5.2. Economic Environment 29
5.3. Rising Input Costs 30
5.4. Government Support 32
5.5. Unsafe Tyres 32
5.6. Labour 33
5.7. Technology, Research and Development (R&D) and Innovation 35
5.8. Environmental Concerns 36
6. COMPETITION 40
6.1. Barriers to Entry 40
7. SWOT ANALYSIS 41
8. OUTLOOK 41
9. INDUSTRY ASSOCIATIONS 42
10. REFERENCES 42
10.1. Publications 42
10.2. Websites 43
APPENDIX 1 - SUMMARY OF NOTABLE PLAYERS 44
COMPANY PROFILES 44
APOLLO TYRES AFRICA (PTY) LTD 44
AUTO AND TRUCK TYRES (PTY) LTD 46
BANDAG SOUTHERN AFRICA (PTY) LTD 48
BRIDGESTONE SOUTH AFRICA (PTY) LTD 51
BRIDGESTONE SOUTH AFRICA COMMERCIAL (PTY) LTD 54
BRIDGESTONE SOUTH AFRICA RETAIL (PTY) LTD 57
CONTINENTAL TYRE SOUTH AFRICA (PTY) LTD 60
GOODYEAR SOUTH AFRICA (PTY) LTD 64
HI-Q AUTOMOTIVE (PTY) LTD 66
KWIK FIT BRANDS (PTY) LTD 72
LEADER RUBBER COMPANY SA (PTY) LTD 74
MICHELIN TYRE COMPANY SOUTH AFRICA (PTY) LTD 76
NUVO SOLID TYRES (PTY) LTD 78
PROTEA VERSOOLWERKE (ERMELO) (PTY) LTD 80
SUMITOMO RUBBER SOUTH AFRICA (PTY) LTD 82
TIAUTO INVESTMENTS (PTY) LTD 85
TRENTYRE (PTY) LTD 89