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Report Description

Report Description

Forecast Period

2026-2030

Market Size (2024)

USD 745.48 Million

CAGR (2025-2030)

3.90%

Fastest Growing Segment

Replacement

Largest Market

Costa

Market Size (2030)

USD 937.84 Million

Market Overview:

The Peru Tire Market was valued at USD 745.48 Million in 2024 and is expected to reach USD 937.84 Million by 2030 with a CAGR of 3.90% during the forecast period. The Peru tire market is witnessing growth due to rising vehicle ownership, expanding logistics activity, and increasing demand for replacement tires across passenger and commercial vehicle segments. The market is also supported by a growing preference for fuel-efficient and durable tire models that enhance driving performance and vehicle safety. Expanding road freight networks and a growing construction sector have driven the need for heavy-duty and off-road tires. For instance, In the first quarter of 2025, Peru’s GDP from Transport rose to approximately USD 2.14 billion, up from USD 2.13 billion in the fourth quarter of 2024. This sector has averaged USD 1.67 billion from 2007 to 2025, reflecting long-term growth momentum. The highest value was recorded in the third quarter of 2024, reaching an all-time high of USD 2.15 billion, highlighting a strong peak in transport-related economic activity.

Market Drivers

Rising Vehicle Ownership Across Segments

The consistent increase in vehicle ownership across both passenger and commercial segments is driving sustained tire demand. As households acquire more personal vehicles and businesses invest in commercial fleets to support logistics, construction, and passenger mobility, the replacement cycle for tires accelerates. Higher vehicle usage results in faster tread wear, leading to more frequent tire replacements. This trend is especially evident in urban and semi-urban markets, where road density and travel frequency are high. Consumers are also paying more attention to tire performance, safety, and durability, leading to growing preference for high-quality and branded tires. The expanding pool of two-wheelers, compact cars, pickup trucks, and light commercial vehicles creates varied demands across radial, bias, and tubeless tires. For instance, in 2025, Peru’s vehicle market recorded strong growth, with new light vehicle sales reaching 16,629 units, up 17.5% year-on-year and 36.2% from December 2024. SUVs led the segment with 8,292 units sold (+23% YoY), while pick-up trucks and vans saw robust gains of 38.9% and 14.2% respectively. Heavy vehicle sales totaled 1,563 units (+19.9% YoY), driven by recovering sectors like mining and construction. Minibus and bus sales surged 78%, and small vehicle sales, including 23,726 motorcycles and 9,901 tricycles, rose 39.6% overall. This expansion was supported by stable inflation, strong private investment, attractive financing, and increased demand across commercial and public sectors.

Expanding Infrastructure and Construction Activities

Rapid growth in infrastructure and construction activities has significantly increased the need for robust tire solutions, particularly in commercial vehicle categories. Trucks, trailers, loaders, and other off-road machinery depend heavily on durable tires that can withstand demanding terrains and heavy payloads. As more roadways, industrial zones, and logistics corridors are developed, construction companies and fleet operators require frequent tire replacements to maintain efficiency and safety. Tires used in this sector face accelerated wear due to uneven surfaces, debris, and extended operational hours. This drives a continual aftermarket need, which is met by specialized tires with deep tread designs, reinforced sidewalls, and puncture-resistant materials. For instance, in 2024, Peru announced the creation of the Ministry of Infrastructure (MINFRA) to address inefficiencies in public project execution and manage over USD 4.355 billion in infrastructure investments. With 1,965 projects losing viability and 372 outdated tenders as of mid-year, MINFRA will centralize key agencies such as Provías, ANIN, PRONIS, and PRONIED to streamline project planning and oversight. Modeled on international best practices, the ministry’s phased implementation—spanning transfer, execution, and consolidation aims to improve coordination, resource use, and transparency.

Technological Advancements in Tire Design

Tire manufacturers are embracing technological innovations to develop high-performance products that cater to evolving consumer expectations. Improvements in tread design, sidewall composition, and rubber compounds have led to tires that offer superior grip, fuel efficiency, and longer lifespans. Advanced tire engineering enables better wet and dry traction, reduced rolling resistance, and noise control, enhancing the overall driving experience. The introduction of run-flat technology, silica-infused compounds, and computer-optimized patterns demonstrates the industry's push towards performance-driven solutions. These innovations not only meet the functional demands of different vehicle types but also align with sustainability goals by increasing durability and reducing waste. Smart tire technology with embedded sensors is gaining traction among fleet operators, providing real-time data on tire pressure, temperature, and wear levels. Such features improve safety, reduce downtime, and enhance maintenance scheduling.  

Peru Tire Market

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Key Market Challenges

Price Sensitivity Among Consumers

A major challenge in the tire market is the high level of price sensitivity among consumers, especially in the replacement segment. Many vehicle owners prioritize cost over quality, often opting for budget or unbranded tires that may lack performance and safety credentials. This behavior creates a fragmented and competitive marketplace, where well-established brands struggle to maintain market share without engaging in price wars. The preference for low-cost options limits the penetration of premium and technologically advanced tires, restricting the growth potential of higher-margin products. Even though branded tires offer better durability and long-term value, initial price considerations tend to dominate purchasing decisions. This challenge is particularly acute among independent vehicle owners and small transport operators who operate under tight cost constraints.

Raw Material Price Volatility

The tire industry is highly susceptible to fluctuations in the prices of key raw materials such as natural rubber, synthetic rubber, carbon black, and steel cords. These components constitute a significant portion of the production cost, making the industry vulnerable to global commodity market trends and supply chain disruptions. When raw material prices rise sharply, tire manufacturers face pressure on profit margins, especially when they are unable to pass on the increased costs to consumers in a highly competitive market. This volatility also affects inventory planning and procurement strategies, often leading to delayed production cycles or cost-cutting measures that impact product development. The unpredictability of input costs complicates pricing strategies and long-term planning, particularly for smaller manufacturers with limited financial cushioning.     

Key Market Trends

Growing Preference for All-Season and Versatile Tires

Consumers are increasingly seeking tires that offer year-round performance, leading to a growing demand for all-season and multi-utility tires. These products provide balanced performance across wet, dry, and moderately adverse weather conditions, reducing the need for seasonal tire changes. All-season tires are designed to maintain stability, comfort, and grip without compromising tread life, making them suitable for both urban and rural driving environments. This trend is particularly driven by value-conscious buyers who prefer a single investment over seasonal switches. Tire manufacturers are responding by launching products with adaptive rubber compounds, optimized tread blocks, and improved drainage channels to handle diverse road conditions. Marketing strategies now highlight all-in-one performance features, positioning such tires as practical and economical. The growing adoption of SUVs and crossovers, which often operate in mixed terrain conditions, also supports this trend. As awareness increases around the long-term benefits and convenience of versatile tire models, the market is shifting from highly specialized products to more adaptive ones.

Digitalization of Tire Retail and Services

The tire industry is undergoing digital transformation with the rapid emergence of online sales platforms, mobile apps, and integrated service booking systems. Consumers now research, compare, and purchase tires online, often bundling the transaction with doorstep installation or local service center appointments. Digital platforms provide pricing transparency, access to customer reviews, and the convenience of browsing multiple brands in one place. This has altered the traditional brick-and-mortar tire retail model, compelling dealers and manufacturers to invest in e-commerce capabilities and last-mile logistics. The integration of artificial intelligence and predictive analytics allows platforms to offer personalized recommendations based on vehicle type, driving habits, and budget. Loyalty programs, EMI options, and instant discounts further attract digital-first buyers.

Emphasis on Sustainability and Eco-Friendly Tires

Environmental concerns and regulatory pressures are steering the tire industry toward more sustainable manufacturing and product development practices. Tire companies are innovating with bio-based materials, recycled rubber, and eco-friendly additives to reduce the environmental impact of tire production. Low rolling resistance tires, which improve fuel efficiency and reduce carbon emissions, are becoming increasingly popular among both OEMs and end-users. These tires are engineered to minimize energy loss, offering better mileage and reduced environmental footprint. There is also a shift toward designing tires that are easier to recycle or re-tread, aligning with circular economy goals. Manufacturers are adopting cleaner production technologies and reducing water and energy consumption across facilities. For instance, in 2025, JLR and Pirelli launched a new EV tire made from over 70% recycled and renewable materials, marking an industry-first for original equipment on JLR’s 22-inch Range Rover wheels. Developed from the Pirelli P Zero line, the tire incorporates silica sourced from rice husks, recycled carbon black, and plant-based resins from agricultural waste and used cooking oils, significantly reducing reliance on fossil fuels.   

Segmental Insights

Vehicle Type Insights

In 2024, the passenger car tire segment dominated the Peru tire market, driven by a steady rise in personal vehicle ownership and an expanding middle-class population. The demand for passenger cars has grown due to increased urban mobility needs, better access to financing options, and a rising preference for private transport. As more vehicles hit the roads, tire replacement cycles have shortened, prompting frequent aftermarket purchases. Consumers have become more aware of the importance of tire performance, safety, and fuel efficiency, leading to stronger demand for branded radial tires with advanced tread designs. Urban road conditions and daily commuting patterns have created consistent wear on tires, fueling repeat sales and maintenance-related upgrades. The expansion of road networks and higher vehicle utilization rates further contribute to tire wear and subsequent replacement needs.

Peru Tire Market

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Region Insights

In 2024, Costa led the Peru tire market due to dense population, urbanization, and strong road infrastructure. High vehicle ownership across cities and active logistics boosted tire demand in passenger, two-wheeler, and commercial segments. Regular usage and easy access to retail and service centers supported strong sales in both OEM and replacement markets.

The Sierra region saw steady tire demand driven by rough terrain and the need for durable, high-grip tires. Commercial and two-wheeler vehicles dominate usage, especially in agriculture and local transport. Reinforced tires suited to mountainous roads helped maintain a niche but vital share of the market.

Selva accounted for a smaller market share but showed growth as road access improved. Humid conditions and rugged terrain created demand for long-lasting, all-terrain tires. Increased use of two-wheelers and light commercial vehicles, supported by informal retail and mobile servicing, contributed to expanding tire sales.

Recent Developments

  • ​In 2024, ZC Rubber extended its strategic partnership with DSV for another ten years, securing continued use of Westlake tires in DSV’s trailer fleets and strengthening its presence in European OEM markets.
  • In 2025, Goodyear sold the Dunlop tire brand to Sumitomo Rubber for $701 million. Goodyear will continue producing and distributing select Dunlop tires in Europe through the end of 2025 under a licensing deal.
  • In 2024, CEOs from ten major tire makers launched a two-year sustainability workplan under the WBCSD, focusing on tire emissions, recycling, and unified sustainability metrics, with oversight from an independent scientific group.
  • In 2024, Kumho Tire announced plans to invest over $750 million in its first European plant, aiming to produce 12 million tires annually by 2027, with site selection expected by year-end.

Key Market Players

  • Bridgestone Corporation
  • Michelin Group
  • The Goodyear Tires & Rubber Company
  • Continental AG
  • Pirelli & C. S.p.A.
  • Yokohama Rubber Company, Limited
  • Hankook Tires & Technology Co., Ltd.
  • Kumho Tires Co., Inc.
  • Sumitomo Rubber Industries, Ltd.
  • Toyo Tires Corporation

By Vehicle Type

By Tire Construction Type

By Demand Category

By Region

  • Passenger Car
  • Commercial Vehicle
  • Two-Wheeler
  • Radial
  • Bias
  • OEM
  • Replacement
  • Costa
  • Sierra
  • Selva

 

Report Scope:

In this report, the Peru Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  •           Peru Tire Market, By Vehicle Type:

o    Passenger Car

o    Commercial Vehicle

o    Two-Wheeler

  •           Peru Tire Market, By Tire Construction Type:

o    Radial

o    Bias

  •           Peru Tire Market, By Demand Category:

o    OEM

o    Replacement

  •           Peru Tire Market, By Region:

o    Costa

o    Sierra

o    Selva

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Peru Tire Market.

Available Customizations:

Peru Tire Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Peru Tire Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Methodology Landscape

2.2. Objective of the Study

2.3. Baseline Methodology

2.4. Formulation of the Scope

2.5. Assumptions and Limitations

2.6. Sources of Research

2.7. Approach for the Market Study

2.8. Methodology Followed for Calculation of Market Size & Market Shares

2.9. Forecasting Methodology

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Regions

4. Peru Tire Market Outlook

4.1. Market Size & Forecast

4.1.1. By Value

4.2. Market Share & Forecast

4.2.1. By Vehicle Type Market Share Analysis (Passenger Car, Commercial Vehicle, Two-Wheeler)

4.2.2. By Tire Construction Type Market Share Analysis (Radial, Bias)

4.2.3. By Demand Category Market Share Analysis (OEM, Replacement)

4.2.4. By Region

4.2.5. By Company (2024)

4.3. Market Map

5. Peru Passenger Car Tire Market Outlook

5.1. Market Size & Forecast 

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Tire Construction Type Market Share Analysis

5.2.2. By Demand Category Market Share Analysis

6. Peru Commercial Vehicle Tire Market Outlook

6.1. Market Size & Forecast 

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Tire Construction Type Market Share Analysis

6.2.2. By Demand Category Market Share Analysis

7. Peru Two-Wheeler Tire Market Outlook

7.1. Market Size & Forecast 

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Tire Construction Type Market Share Analysis

7.2.2. By Demand Category Market Share Analysis

8. Market Dynamics

8.1. Drivers

8.2. Challenges

9. Key Market Disruptions

9.1.  Conflicts

9.2.  Pandemic

9.3.  Trade Barriers

10. Market Trends & Developments

11. Porter's Five Forces Analysis

12. Policy & Regulatory Landscape

13. Peru Economic Profile

14. Competitive Landscape

14.1. Company Profiles

14.1.1. Bridgestone Corporation

14.1.1.1. Business Overview

14.1.1.2. Company Snapshot

14.1.1.3. Products & Services

14.1.1.4. Financials (As Per Availability)

14.1.1.5. Key Market Focus & Geographical Presence

14.1.1.6. Recent Developments

14.1.1.7. Key Management Personnel

14.1.2. Michelin Group

14.1.3. The Goodyear Tyres & Rubber Company

14.1.4. Continental AG

14.1.5. Pirelli & C. S.p.A.

14.1.6. Yokohama Rubber Company, Limited

14.1.7. Hankook Tyres & Technology Co., Ltd.

14.1.8. Kumho Tyres Co., Inc.

14.1.9. Sumitomo Rubber Industries, Ltd.

14.1.10. Toyo Tyres Corporation

15. Strategic Recommendations

16. About Us & Disclaimer

 

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Peru Tire Market was estimated to USD 745.48 Million in 2024.

Rising vehicle ownership, expanding road infrastructure, increasing replacement demand, growing logistics activity, and consumer preference for durable and fuel-efficient tires are major drivers for the Peru tire market.

Growing preference for all-season and smart tires, expanding online tire retail and service platforms, and increasing focus on eco‑friendly, low rolling‑resistance compounds characterize key trends in the Peru tire market.

High price sensitivity, prevalence of unbranded budget tires, fierce competition, volatile raw material costs, and fragmented retail channels remain the major challenges confronting the Peru tire market.

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