Australia Car Tyre Market Forecast Trends - Market Size, Share, Growth Analysis Report (2026-2035)

Australia Car Tyre Market Growth

As per the Federal Chamber of Automotive Industry, electric vehicle sales in Australia reached 87,217 in 2023. This translated into a year-on-year increase of 3.1% while constituting a share of 7.2% in the overall market. The sales of hybrid, plug-in hybrid, and electric vehicles together reached 196,868, constituting a share of 16.2% of the overall market.

The sale of hybrid vehicles surged from 7.6% of the total market in 2022 to 8.1% of the total market in 2023, indicating soaring consumer sentiment for environmentally friendly modes of transport. This is expected to raise the demand for unique tyres that are well-suited for the design and performance of EVs. This includes tyres possessing an optimised footprint shape that have lesser noise emissions. Over the forecast period, lightweight tyres with less rolling resistance are expected to witness a surge in demand, as they maximise battery range and reduce the need for frequent charging.

The increasing demand for technically advanced tyres has prompted tyre manufacturers to rely on new technologies and materials, such as laser carving tools and aramid fibres. This has led to the proliferation of run-flat tyres, such as self-sealing tyres, air-free tyres, and self-inflating tyres, among others, thereby driving the market growth.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

Australia Car Tyre Market Trends

Innovations in digital technologies, such as artificial intelligence and machine learning can potentially contribute nearly $315 billion to the Australian economy by 2028. The increasing investments by Australian state governments in the development of digital twin technologies are expected to favour the development of innovative ways of tyre production domestically. The government of New South Wales, Victoria, and Western Australia have invested a cumulative amount of nearly $220 million to encourage increasing research and development of these technologies. This is expected to significantly impact the domestic market for tyre production, thereby driving the market expansion.

Australia Car Tyre Industry Segmentation

Australia Car Tyre Market Share

Based on region, the market is segmented into New South Wales, Victoria, Queensland, Australian Capital Territory, and Western Australia, among others. Victoria dominated the market, representing 10% of the overall market share in 2025. Over the forecast period of 2026-2035. New South Wales is expected to grow at a CAGR of 4.7% due to the rising adoption of electric vehicles and increasing innovation in material sciences.

Leading Companies in the Australia Car Tyre Market

Major Australian tyre manufacturers are expected to use digital twins and virtual reality systems for developing new prototypes of car tyres, thereby enhancing the durability and performance of new tyre versions, while reducing development time.

• Bridgestone Australia Limited
• Goodyear and Dunlop Tyres (Aus) Pty Ltd.
• Yokohama Tyre Australia Pty Ltd.
• Michelin Australia Pty Ltd.
• Kumho Tyre Australia Pty Ltd.
• Hankook Tyre Australia Pty Ltd.
• Continental Tyre of Australia Pty Ltd.
• Pirelli Tyre Australia Pty Ltd.
• Toyo Tyre and Rubber Australia Limited
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.