Michelin Aims At Improving Market Share

Michelin recently held an analyst conference to discuss its commercial vehicle tyre performance and strategy. This sector is worth 3.9 billion Euro a year in sales to Michelin, with an operating margin of almost 9 per cent, despite the dramatic downturn in the US and European markets.

Looking ahead, the company’s strategy lies in the provision of total tyre management and problem solutions for fleets, with Michelin often taking over a customer’s total tyre requirements, from new tyres to scrap disposal. Typically, Michelin tyres command a price premium (of up to 20 per cent in Europe) over competitors’ tyres and the company intends to maintain this pricing level. Despite the higher prices, Michelin has an estimated OE market share of 70 per cent, and a replacement market share of over 30 per cent, and the company is aiming to improve on these figures.