The Latin American (LatAm) tire market is entering a period of steady expansion, offering both opportunities and challenges for global tire makers.

In our Sept. 8 issue, the Tire Business team looked at how our Southern neighbors are evolving.

First off, despite our generalizing the market for the sake of better understanding the region, it’s important to remember that LatAm is diverse.

“The U.S. is a single country with a federal government and common rules,” explained Eduardo Minardi, a former Bridgestone executive who now runs Minardi Global.

“Latin America encompasses 33 countries, each with its own set of laws, cultures and regulations. There is no single market.”

Among the 33 countries, Brazil, Mexico and Argentina represent two-thirds of combined GDP and about the same share of tire demand.

Brazil alone accounts for more than 40% of annual tire sales, and the majority of tire production in South America is in Brazil.

On average, LatAm consumers buy more tires than the U.S. This is because tires wear faster due to poorer road conditions, inconsistent vehicle maintenance and frequent overloading. Many countries also have a thriving market for used tires.

Only about 3% of Latin Americans fall into the “high” income category, compared with 15%-20% in the U.S. As a result, premium tires hold a smaller share than in the U.S., and the replacement market is dominated by value-tier products.

Chinese brands have made deep inroads, with imports already accounting for more than 40% of replacement-tire volume in Brazil and Argentina. This wave of low-cost imports has hurt local producers and put pressure on retreading businesses.

Meanwhile, tire-maker investment in Mexico is reshaping the market. Sailun and ZC Rubber are building new plants. Pirelli has expanded its plant in Guanajuato.

SUVs and pickup trucks are growing in popularity across LatAm, much like in the U.S. In Mexico, SUVs accounted for more than 40% of the new vehicle market in 2024.

Another trend reshaping Latin America is digital tire sales. Platforms like Mercado Libre — Latin America’s equivalent of Amazon — now sell more than 10% of all tires in the region, while Brazil’s Cantu Pneus moves over 5 million units annually online.

The LatAm tire market is projected to be worth $17 billion in 2024, growing at more than 4% annually through the end of the decade.

The aftermarket is the most important driver, projected to expand by 4.4%, as strong vehicle sales continue in Brazil, Mexico and Argentina. Additionally, major infrastructure investments are fueling demand for heavy-duty tires, and strong agricultural activity is boosting sales of ag tires.

“Governments and private entities are investing heavily in road networks across Latin America,” according to Expert Market Research (EMR)/Claight Corp. “This surge in activity not only facilitates mobility, but also necessitates the deployment of construction vehicles and heavy machinery.”

Yet challenges remain. Manufacturers face cost pressures, currency volatility, import competition and fragmented regulations.

Success in the region requires local expertise, flexibility and a clear strategy for balancing volume with value.