Updated Sep 27, 2022 12:31

Market for Motorcycle or Bicycle Tyre in Chile

Market Overview
In , the Chilean motorcycle or bicycle tyre market increased by % to $, rising for the second year in a row after two years of decline. In general, consumption saw strong growth. As a result, consumption attained the peak level and is likely to continue growth in the immediate term.


Consumption
Motorcycle or bicycle tyre consumption in Chile contracted to units in , with a decrease of -% compared with the previous year's figure. Over the period under review, consumption, however, recorded a modest expansion. Over the period under review, consumption reached the peak volume at units in 2013; however, from 2014 to , consumption stood at a somewhat lower figure.

The revenue of the motorcycle or bicycle tyre market in Chile declined modestly to $ in , which is down by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, continues to indicate a strong expansion. As a result, consumption attained the peak level of $, and then reduced modestly in the following year.


Market Forecast
The motorcycle or bicycle tyre market is expected to start a downward consumption trend over the next eight-year period. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Motorcycle or bicycle tyre market in Chile consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, Chile relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Chile remains a net importer of motorcycle or bicycle tyre; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.