Record US Tyre Shipments

Passenger car replacement tyre shipments are expected to reach a record total of 205 million units this year, according to the latest RMA figures. The previous record was 198.9 million units, set in 2000. This will be the first time shipments have exceeded 200 million units in any given year. Similarly, tyre shipments for the combined original equipment (OE) and replacement consumer and commercial sectors are expected to increase by 2.2 per cent compared to 2004 as a result of continued steady economic growth.

Tyres sourced through imports will fulfil all of the increase in domestic shipments for 2005 and 2006 for all categories and especially passenger replacement, the RMA report stated. The group projects continued growth in total tyre shipments of approximately 2 per cent in 2006, reflecting increases in US Gross Domestic Product (GDP) and Industrial Production Index (IPI).

Shipments of replacement passenger tyres designed for sport and crossover utility vehicle applications jumped by 15 per cent to 40 million units. Additionally, the High and Ultra High Performance markets increased 5 per cent and 14 per cent, respectively, compared to 2004. Growth is expected to moderate slightly in these categories for 2006. Despite higher fuel prices, steady growth in this segment is largely attributed to continued growth in the number of vehicles on the road and increasing vehicle miles travelled.

According to the RMA’s Tire Market Analysis Committee, the number of OE passenger units shipped in 2005 will be unchanged from 2004’s 53 million units as domestic auto and light truck production remains constant. A slight decrease of less than one-half of one per cent is forecast in 2006 in line with the decrease in vehicle sales. However, this forecast was made before General Motor’s plant closure announcement and the RMA concedes: “This may need to be revised when a clearer understanding of the dynamics between domestic sales and production by US and foreign manufacturers can be ascertained.”

Light truck OE shipments are expected to decrease 2.5 per cent in 2005 to approximately 7.7 million units as consumers opt for smaller-sized crossover utility vehicles (CUVs) that use passenger tyres. Similarly, a further 2.6 per cent decrease is anticipated for 2006 as CUVs gain in popularity.