The Latin America tire market is projected to grow 4% CAGR (compound annual growth rate) to nearly 256.4 million units by 2034, with the aftermarket generating the largest revenue, according to Expert Market Research (EMR)/Claight Corp.

The tire market reached around 173.2 million units in 2024.

The aftermarket segment is projected to grow by 4.4% CAGR between 2025-34, according to EMR.

Meanwhile, Grand View Research projected the Latin American tire market will experience a CAGR 2.6% increase from 2025-30 to reach a projected revenue of $10.5 billion.
Individually, Brazil is expected to register the highest CAGR from 2025-30 among the Latin American countries, according to Grand View.

The Latin America tire market generated a revenue of nearly $9 billion in 2024, The region accounted for 6.3% of the global tire market in 2024, according to Grand View.

The tire market sales are driven by growth in the automotive sector — particularly in Brazil, Mexico and Argentina — rising infrastructural development, technological advancements, increasing agriculture tire demand and expansion of the retail market.

Extensive infrastructure projects, including road construction and maintenance, has impacted demand for heavy-duty construction tires, while a flourishing agricultural sector in Latin America has prompted demand for tractor and harvester tires, according to the EMR report.

“As governments and private entities invest heavily in the enhancement and expansion of road networks throughout Latin America, there is a corresponding increase in vehicle usage and mobility across the region. This surge in activity not only facilitates the movement of goods and people but also necessitates the deployment of a wide array of construction vehicles and heavy machinery,” EMR said.

Vehicle market

Much like the U.S. market, SUVs and pickup trucks are growing in popularity in Latin America.

Both segments posted record sales levels, with SUVs accounting for 40.7% of the Mexican market, according to the Mexican auto dealers association (Asociacion Mexicana de Distribuidores de Automotores A.C.).

Electric vehicle (EV) sales across Latin America reached about 90,000 units in 2023, according to EMR, with Brazil, Colombia, Costa Rica and Mexico leading the way.
In Brazil alone, EV registrations nearly tripled, compared with 2022, surpassing 50,000 units and achieving a market share of 3%, EMR said.

In Mexico, sales of hybrid and electric vehicles during the first half of 2025 increased 17.4%, to 76,562 vehicles, equivalent to 9.2% of the total vehicles sold in the domestic market, according to the Mexico auto dealers group.