First a dissection of the tyre market in four different sectors – one that was severely affected and three that have been the mainstay of resilience.

Cowrie Shells of Trade

Initially, Cowrie shells were used as currency for trading right after the barter age. Cowrie shells were/ are still used in astrology in many parts of Africa to predict the future. Four cowrie shells held in the hand, the astrologer would then shake the shells while clenching the fist and throw them to the ground. Depending on how many shells turned upside, the astrologer would then tell the future. In my case, three have turned upside and one facing down – an ominous sign.

(Cowrie Shell number 1) The Motorcycle  Market

Also known as ‘bodabodas’, motorcycles are divided into the mid-premium, premium and commuter motorcycles. The rise in numbers in pre-pandemic times and presently is because of their ability to move efficiently in urban and rural areas, especially where the road conditions are poor. 

 Between 2011 and 2019, the number of motorcycles grew 233 percent from 500,000 to 1.7 Million. The average annual demand for motorcycles is 200,000 units – a demand that is fuelled by a relatively affluent rural population with a drive for personal mobility (Source: Kenya Automotive Sector Profile – 60 years Anniversary edition). Motorcycle tyres sales have not lagged behind in the regard, with most of the imports coming from India and China. Often these tyres are not recyclable.

(Cowrie Shell number 2) Commercial Market Truck

The shift in rules and regulations surrounding travel has come with uncertainty and border closures that were aimed at stopping the spread of the disease. Closure of some truck tyre producing plants and ensuring that the overseas parent markets demands were met before exports meant that there was a shortage in this sector. The sector has been supported by the Light Commercial Vehicle tyres from the 7.00-16, 7.50R16, 9.5R17.5, 265/70R19.5 and, more recently, 255/70R22.5 (FI engines). These vehicles are not under the spotlight of weigh-bridge restrictions as compared to their bigger rig 22 and above wheeler cousins and hence have become a vehicle of choice of up-coming and existing transporters wanting to squeeze the payload shilling to a longer mile. Even in the absence of verifiable date or research papers, it is estimated that commercial driving has dropped by about 20 percent.

(Cowrie Shell number 3) Agricultural Tyres

The sector that continues on an upturn is one that continues to feed the millions of people every day. Even with a prediction of drought at the end of the year, tractors and farmers on the road continue to grind tyres to ensure that there are products from the farm to fork. The OEM/ replacement/aftermarket sectors are experiencing a rise in demand for efficient and productive agricultural machinery that is driving the agricultural tyre market. It is primarily the technological advancements and expanding population that are propelling the agricultural tyre market. Sameer Africa, the only agricultural tyre manufacturing concern in the country, closed its doors in 2019. While the overall scenario of the market is positive, the demand is hugely dependent on the economic turmoil in the region that invariably affects the farmers’ income and purchase of farm machinery. However, a downturn in farming equipment sales is expected to continue till 2022 as Covid-19 severely impacted the automotive industries.

Changing agricultural machinery design and increasing penetration into new unexplored terrain will require tyres that have stronger rubber compounds. Flotation, forestry, trailer and compound rubber tyres with steel flex wall are now trending in the local agricultural tyre market.

(Cowrie Shell number 4) Passenger and 4x4

Regarding the future impact of personal and business travel, Bill Gates recently noted that we can ask the question “Do I have to go there personally? ” and predicted 50 percent decline for the post Covid-19 world. In addition to that, walking, cycling and motorcycling have gained preference.

In addition to the specifics of the tyre market, various factors continue to plague the East African tyre industry, and they include:

•           Uncertainty that the virus will move into the winter months and the Delta variant. With less than 10 percent of the population now vaccinated in the East African region, it is difficult to say how the disease will pan out. What is certain is that the periods of confinement will continue deep into 2022 (an election year in Kenya).

•           At some point this year, freight costs rose by 300 percent. Tyre sellers had no option but to pass the cost to the consumer. Supply chain disruptions are here to stay mainly because Kenya will be having the general elections next year. Tanzania and Uganda have already had theirs. In such times, many investors hold back on the resources waiting for regime change and the chaos that follow a general election.

Rangoli of Possibilities

Many years ago, I woke up every day to beautiful drawings made on the ground in front of a neighbour’s doorstep. Drawn by a young Indian girl, I later came to learn their meaning. Using multi-colored, ochre, dried rice sand, flour, rocks and petals, beautiful drawings were made on the doorstep as a part of an everyday Hindu household practice – even more so, during the important Hindu ceremonies such as Diwali, Pongal and Tihar (I would urge the reader to view some of these drawings on Google). The Rangoli represents happiness, positivity and liveliness of a household (nation) intended to welcome health and happiness. It is for this reason that I intend to paint here that African Tyre Market Rangoli during this very trying Covid times mostly for therapeutic purposes. 

It is in these Rangolis of possibilities that I would like to offer my predictions and possible solutions:

Prediction no. 1

In East Africa, future urban mobility will not rely on individual car traffic regardless of the propulsion system. The pandemic will cause urban planners to re-think the transport framework policy. Policy makers will nurture the momentum gained to further transform the traffic landscape towards environmentally friendly towns and cities.

Prediction no. 2

In the midst of dwindling and scarce resources, the one that remains unlimited is ‘IDEAS’. E-commerce readiness will be vital in determining the survivability of a business during the Covid-19 pandemic. The level of readiness will determine their continuance and sustainability.

E-commerce readiness can be examined on the basis of Technological readiness / Organisational Readiness and Environmental Readiness. Challenges and constraints thrown our way, such as the Covid-19 proffers, only encourage a business to adopt e-commerce and take it to another level. (Ref. Journal of Asian Finance, Economics and Business)

Suggestions on how to weather the storm

In order to strive, thrive and stay ahead of the pandemic curve, businesses in East Africa have to adopt different business strategies:

•           Tyre business owners and managers must consider going against the previous market stock trends such as Just in Time Management. Maximise coverage, over-order on fast moving items, plan way ahead, order early, sell what your competition can offer you and pro-actively communicate with customers about impending shortage (being upfront and honest)

•           Being constantly in touch with suppliers, strategically allocate stocks, buy out of the normal circles, train front-line staff on up-downsizing-cross sizing and tyre husbandry.

•           Invest in your people in training (preferably online) and keep moral high.

•           With pricing; work around keeping your cost low and don’t raise prices when you can’t supply. This puts you up against a customer.

 What the Cowrie shells on the ground say

I would like to pen-off with the words of Kenya’s finance cabinet secretary, Ukur Yatani Kanacho:

“Last year around this time, you would think that ours was a deserted city. Life is now back to normal, the vibrancy is back. We are quite optimistic. Kenyans have accepted and adopted to the new way of living and we are quite alive to the challenges posed by Covid-19”. (TT)

Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.