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Focus on • 11
Optimistic outlook for passenger
tyre replacement market despite
economic downturn
With the global economic downturn uppermost on everyone’s mind, this year promises to be
particularly challenging, even for South Africa, which thanks to its prudent monetary policies and
more stringent credit lending practices, has not fallen victim to the credit control governance issues
plaguing the US, Europe and the East. That said, we are not an island and are bound to feel the knockon
effects of unstable markets, fluctuating currencies and global downsizing. The manufacturing and
retail sectors are already being affected, as are imports and exports. Worst hit perhaps, is the motor
industry, with vehicle sales slowing considerably as disposable income dwindles and consumer
confidence wanes. Which begs the question: How will the economic downturn impact passenger
tyre sales over the next 12 months?