Australia Tire Market Size, CAGR & Forecast, 2025-2035

Mining tires and a record car fleet keep Australian tire demand rising, while recycling rules tighten around importers

At USD 4.12 Billion in 2025, the Australia tire market is set to reach USD 4.26 Billion in 2026 and USD 5.78 Billion by 2035, growing at a 3.45% CAGR in Radial Insights' estimate.

The figure measures the wholesale value of new tires sold to Australian buyers across passenger cars, SUVs and four-wheel drives, trucks and buses, off-the-road and mining machines, and farm equipment. Retreads, used and part-worn tires, wheels, fitting labor and stewardship levies are left out. Australia has made no passenger tires since the last local plants closed, so almost every tire is imported, and the regional shares we report show where the tires sold in Australia were made.

Imports set the shape of the market. Australia brought in about USD 2.6 Billion of new pneumatic tires in 2023, 10.7% less than in 2022. In 2025, tires from China were worth USD 823.89 Million, from Japan USD 692.12 Million, from the United States USD 419.48 Million and from Thailand USD 321.88 Million. Japan and the United States ship many of the giant earthmover tires used on Pilbara and Queensland mine sites, which is why they rank higher here than in most car-led markets.

Demand grows with the fleet. Australia counted 22,305,347 registered vehicles in January 2025, up 2.6%, and FCAI's VFACTS data show a record 1,241,037 new vehicles sold in 2025. Battery electric sales rose 13.1% to 103,269 units, adding heavier cars that wear tires faster.

Online sales are the fastest-growing segment at 7.80% a year. Asia Pacific (APAC) is the fastest-growing source region at 3.70%, as Chinese, Thai and Japanese factories supply most passenger and light truck sizes. Recycling policy is the main structural change: a House of Representatives committee tabled 12 recommendations in October 2026, including a staged end to burying mining tires on site.

Mining, 4x4 and online segments outgrow passenger tires sold over the counter

Across the Australia tire market, segment growth runs from 2.20% to 7.80% a year. Heavy-duty uses and new retail routes grow fastest, while sedan tires and small independent dealers grow slowest. CAGRs for every segment are listed below.

By Tire Type: 4x4 and mining sizes lead

Passenger car tires sell the most units but grow at only 2.60%, since Australians keep moving from sedans to SUVs, utes and four-wheel drives. SUV and 4x4 light truck tires grow at 4.10%, helped by the popularity of dual-cab utes and touring 4x4s that use larger, more costly all-terrain sizes. Off-the-road and mining tires are the fastest type at 4.40% a year; a single giant haul truck tire can cost as much as a small car, so even small fleet changes move value. Truck and bus tires add 3.30% a year, and agricultural tires 2.80%, tied to grain and livestock seasons.

By End User: miners and freight fleets spend more

Mining operators grow fastest at 4.60%, as iron ore, coal, lithium and gold sites run large truck fleets around the clock. Road freight and bus fleets grow at 3.40%; new heavy truck tire sales nearly doubled from 1.5 million to 2.7 million units between 2017 and 2025 as retreading declined. Private motorists grow at 2.90% with the fleet, agriculture at 2.70% and government and defense at 2.20%.

By Distribution Channel: online gains while small dealers consolidate

Online sales grow at 7.80% a year as buyers compare prices and book fitting at partner workshops. Mass merchants and auto centers grow at 3.90%, and brand-owned chains such as Bridgestone Select and Goodyear Autocare grow at 3.10%. Independent dealers trail at 2.40%, and many are being absorbed by groups; Magna Tyres Group agreed in December 2025 to buy Telescope Tyres Group and its four New South Wales branches.

By Price Tier: mid-tier brands edge ahead

Mid-tier tires grow at 3.85% as Korean and upper Chinese brands win buyers who once chose Japanese or European labels. Premium tires grow at 3.70%, supported by 4x4 owners and electric car buyers. Budget tires grow at 2.60%, held back by quality concerns that the October 2026 parliamentary report proposed to address through design rules.

Market Trends

Tire recycling is moving toward a mandatory scheme

In May 2025 Tyre Stewardship Australia (TSA) backed a federal Circular Economy Act and mandatory participation by all tire importers, after the Senate inquiry report No Time to Waste. TSA's FY25 annual report shows why: levy-paying importers covered only 53% of imported tires by equivalent passenger units, down from 57%. In October 2026 the House of Representatives committee report When the Rubber Hits the Road asked the government to consider a mandatory stewardship scheme and to audit the voluntary one. A compulsory levy would add a small, uniform cost to every tire sold.

Mining tire recycling capacity is finally being built

In August 2025 Tyrecycle opened its Port Hedland plant in the Pilbara, described as Australia's first facility dedicated to off-the-road mining tires, with capacity of more than 30,000 tonnes a year. The same month, a Western Australian government report found that only about 30,000 tonnes of used tires are recycled locally and that more than AUD 50 Million a year of resource value is lost from off-the-road tires. Recovery of mining tires is below 5%, so new capacity has a large stockpile to work through.

Retreading is shrinking and new truck tires fill the gap

A TSA study released in May 2026 found that domestic retreads fell from about 20% to about 10% of heavy commercial replacement tires between 2017 and 2025, and only 22 retread plants remain, down from 61 in 2003. Cheap imported truck tires have made new casings competitive with retreads, which lifts new tire volumes and value but adds to end-of-life tonnage.

Trans-Tasman cooperation on end-of-life tires

In November 2025 TSA and Tyrewise New Zealand launched the Trans-Tasman Tyre Recycling Alliance, noting that the two countries generate more than 600,000 tonnes of end-of-life tires a year. Shared standards for crumb rubber, tire-derived fuel and road surfacing could create larger markets for recycled material and lower the cost of compliance for importers that sell on both sides of the Tasman.

Restraints and Challenges

Full dependence on imports

Australia makes no passenger tires, so freight rates, the Australian dollar and price moves at Asian plants pass straight to local shelves. Import value fell 10.7% in 2023 to about USD 2.6 Billion as freight costs eased and dealers ran down stock, which shows how quickly the market can swing. Trade flows by partner can be checked in UN Comtrade.

Low recycling rates and possible new costs

TSA reported that about 562,000 tonnes of tires reached end of life in FY25, and in 2023-24 only 26% of recovered tires were recycled or reused; 30% went to landfill or were buried on site. Domestic crumbing capacity was 86,250 tonnes a year. A mandatory levy, a phase-out of on-site burial and limits on exports of waste tires would all raise the cost of selling and disposing of tires, especially for mining operators.

Quality concerns over budget imports

The October 2026 parliamentary report recommended widening Australian Design Rules 23, 95 and 96 to cover tire quality and durability. New testing rules would lift compliance cost for low-price importers and could narrow the budget range, which grows at only 2.60% in our forecast.

Slow growth in new car sales

New vehicle sales reached a record 1,241,037 units in 2025 but rose only 0.3%. With car sales flat, tire demand depends on the existing fleet and on miles driven, which caps passenger tire growth at around 2.60% a year.

Growth Drivers

Mining output and heavy earthmover fleets

Australia's iron ore, coal, gold and lithium mines run some of the largest haul truck fleets in the world, and their tires are among the most expensive products in the tire industry. The House inquiry heard that more than 100,000 tonnes of off-the-road tires are buried on mine sites each year, and Kal Tire estimates more than 500,000 tonnes are stockpiled, a measure of how much rubber the sector uses. Bridgestone Mining Solutions Australia and its Otraco International service unit named Andy Davies as managing director in March 2026, showing that suppliers treat mining tires as a core business. United States shipments of USD 419.48 Million in 2025 consist largely of these large sizes. Mining demand adds about +1.0% to yearly growth of the Australia tire market, and its weight rises as lithium and copper projects expand.

A growing, heavier vehicle fleet

Registered vehicles reached 22,305,347 in January 2025, including 16,080,036 passenger vehicles, and the battery and fuel-cell electric fleet jumped 54.6% to 259,692. Record new vehicle sales of 1,241,037 units in 2025, led by SUVs and utes, mean more cars on larger rims. Electric cars weigh more and deliver instant torque, which shortens tread life, and battery electric sales grew 13.1% to 103,269 units in 2025. We estimate fleet growth and the shift to heavier vehicles contribute roughly 1.5 points of annual market expansion, the largest single driver.

Freight growth and the decline of retreading

Road freight keeps growing with population and e-commerce, and truck operators are buying more new tires instead of retreads. New heavy truck tire sales rose from 1.5 million to 2.7 million units between 2017 and 2025, while retread share of heavy commercial replacements halved to about 10%. Each new truck tire is worth more than a retread, so the switch lifts market value even when tire use per kilometer stays the same. This shift is worth close to +0.6% a year to the market across the forecast, though new design rules or a stewardship push for retreading could slow it after 2028.

Opportunities

Mining tire services and recycling

Phasing out on-site burial over five years, as the parliamentary report proposed, creates demand for collection, cutting and recycling of giant tires. Suppliers that bundle tire sales with fitting, monitoring and end-of-life recovery, as Tyrecycle and the major brands are starting to do, can lock in long mining contracts.

Online sales with fitting networks

Online tire sales grow at 7.80% a year. Retailers and brands that tie web sales to national fitting networks, such as Tyrepower's franchise stores or the 1,655 TSA-accredited retailers, can reach buyers who compare prices on their phones before booking a fitting.

Asian factories supply seven in ten tires sold in Australia, while American and Japanese plants dominate mining sizes

Asia Pacific (APAC)

Asia Pacific (APAC) supplied 70.80% of Australia tire market value in 2025, about USD 2,916.96 Million, and will reach USD 4,194.87 Million by 2035 at a 3.70% CAGR, the fastest of any source region. China shipped USD 823.89 Million of new tires to Australia in 2025, Japan USD 692.12 Million and Thailand USD 321.88 Million, with South Korea at USD 62.5 Million, Vietnam USD 45.66 Million and Indonesia USD 43.84 Million. Japan also supplies many large mining tires from Bridgestone and Yokohama plants.

North America

North America supplied 15.40% of 2025 value, worth USD 634.48 Million, and grows at 2.90% to USD 844.45 Million by 2035. The United States alone shipped USD 419.48 Million of tires to Australia in 2025 and held about 14.9% of import value in 2023, mostly earthmover and mining tires from Bridgestone, Michelin and Goodyear plants. Demand from North America depends on mine fleet replacement cycles in Western Australia and Queensland.

Europe

Plants in Europe supplied 10.90% of 2025 value, about USD 449.08 Million, rising to USD 594.79 Million by 2035 at a 2.85% CAGR. Europe ships premium passenger and SUV tires from Michelin, Continental and Pirelli, plus some agricultural and truck tires. European brands hold a strong position in OE fitments on imported German cars, which sold well in Australia's record 2025 vehicle market of 1,241,037 units.

Latin America

Latin America accounted for 1.10% of 2025 value, worth USD 45.32 Million, and grows at 3.30% to USD 62.70 Million by 2035. Brazil and Mexico host plants of Pirelli, Bridgestone, Goodyear and Continental that ship passenger, light truck and agricultural tires. Latin America gains a little as brands spread supply away from single Asian sources.

Middle East

For this analysis the Middle East, which we define to include Turkey, supplied 0.90% of 2025 value, about USD 37.08 Million, growing at 3.10% to USD 50.32 Million by 2035. Turkish plants of Pirelli, Goodyear, Brisa and Petlas make passenger, truck and agricultural tires for export. Middle East suppliers mainly fill gaps in farm and light truck sizes.

Africa

Africa supplied 0.90% of 2025 value, about USD 37.08 Million, and grows at 2.60% to USD 47.93 Million by 2035. South African plants of Continental in Gqeberha and Sumitomo Rubber in Ladysmith ship truck and passenger tires, and some African sizes reach Australian mining and farm users. Africa is the slowest-growing source because of long shipping times and limited capacity.

Recent Developments

• In October 2026, the House of Representatives committee tabled When the Rubber Hits the Road, with 12 recommendations including a five-year phase-down of burying mining tires on site and wider design rules for tire quality.

• In May 2026, a Tyre Stewardship Australia study found that retreads fell to about 10% of heavy commercial replacement tires by 2025, with only 22 retread plants left.

• In March 2026, Bridgestone named Andy Davies managing director of Bridgestone Mining Solutions Australia and Otraco International.

• In January 2026, FCAI data showed record 2025 new vehicle sales of 1,241,037 units, with battery electric sales up 13.1% to 103,269.

• In December 2025, Magna Tyres Group agreed to buy Telescope Tyres Group, which runs branches in Parkes, Dubbo, Gunnedah and Cowra.

• In November 2025, Tyre Stewardship Australia and Tyrewise New Zealand launched the Trans-Tasman Tyre Recycling Alliance.

Global brands with their own store networks lead, while Asian importers and regional dealer groups fight for the rest

Because no passenger tires are made locally, competition in the Australia tire market turns on brand strength, retail reach and service contracts with fleets and mines. Brands that own or control store networks hold an edge over pure importers.

Global brands with retail networks

Bridgestone runs Bridgestone Select stores and a large mining service business through Bridgestone Mining Solutions Australia and Otraco International, which manages tires on mine sites. Goodyear sells through its Autocare network and supplies earthmover tires from US plants. Michelin is strong in premium passenger, 4x4 and mining tires, with its large earthmover sizes widely used in the Pilbara. Continental and Pirelli focus on premium passenger and SUV tires and on OE fitments for imported European cars.

Japanese and Korean challengers

Yokohama Rubber and Toyo Tire are well known in 4x4 and light truck tires, with Toyo's Open Country range popular with touring drivers. Sumitomo Rubber Industries now owns Dunlop brand rights in Oceania after buying them from Goodyear in 2025, adding a familiar local name to its Falken range. Hankook Tire and Kumho Tire compete in the mid-tier, offering lower prices than Japanese brands with growing OE presence on Korean cars.

Dealer groups and franchise networks

Tyrepower runs one of the largest independent franchise networks, selling several brands under one banner. Magna Tyres Group is consolidating regional dealers, agreeing in December 2025 to buy Telescope Tyres Group in central New South Wales. These groups gain buying power with importers and help small dealers survive as online sales grow.

Mining service and recycling specialists

Kal Tire manages tires on many mine sites and has campaigned on the size of buried mining tire stockpiles. Tyrecycle opened Australia's first dedicated mining tire recycling plant at Port Hedland in 2025 with more than 30,000 tonnes a year of capacity. As burial rules tighten, these firms will matter more to the total cost of mining tires.