According to the latest study by IMARC, the tire market in Saudi Arabia reached 22.6 million units in 2023. Looking forward, IMARC anticipates that the market will grow to 25.5 million units by 2032, with a compound annual growth rate of 1.26% during 2024-2032.
The significant growth is primarily driven by the expanding vehicle fleet in the Kingdom, propelled by population growth and the country's Vision 2030 initiatives to diversify the economy. The increasing urbanization and large-scale infrastructure projects contribute to heightened demand for commercial vehicles, resulting in increased tire consumption.
Additionally, the hot climate and rugged terrain in the region lead to more frequent tire replacements. The market also benefits from the increasing demand for electric vehicles and the growing focus on sustainability, which enhances the need for specialized tires compatible with electric cars. The presence of global tire manufacturers and the expansion of after-sales services support market growth.
In October 2024, Hankook Tires expanded its high-performance electric vehicle tire range in Saudi Arabia with the introduction of the “iON evo” and “iON evo SUV” models. These tires are available in sizes 18, 20, and 21 inches, designed for a quiet and comfortable ride while improving fuel efficiency and extending range, meeting the increasing needs of electric vehicle owners in Saudi Arabia.
In March 2024, Kumho Tires signed a 20-year technology export agreement with Black Arrow Tires in Saudi Arabia (Blatco). Under the agreement, Kumho will provide technological support to Blatco for producing passenger car tires in Saudi Arabia and the Middle East. Aligning with Saudi Vision 2030, Blatco is constructing a tire factory covering 280,000 square meters in the western industrial zone, expected to commence operations by 2027, aiming to expand its tire production and sales throughout the Middle East.
In October 2023, the Public Investment Fund of Saudi Arabia and Pirelli Tires announced a joint venture worth $550 million to establish a tire manufacturing facility in Saudi Arabia, expected to commence production in 2026. This facility will manufacture high-quality tires for both the Pirelli brand and a new local brand targeting regional markets, with an annual production capacity of 3.5 million units.
Adrian is an Editor. Psychology graduate with over 4 years in the automotive industry, 3 in front of the camera. Occasionally seen at his family owned tyre shop. He will only buy cars that pass the big bottle test.
