European PCR Replacement Market up 9 per cent

Passenger car tyre replacement markets were “very strong in October,” according to Michelin. The research shows that the European replacement market sales grew 9 per cent (+2.9% year-to-date); and 4 per cent in North America (-3.2% year-to-date). Truck tyre sales also grew in the period, according to report, although not as much as the passenger car market.

The European truck market is said to have grown 2.4 per cent (+3.2% year-to-date). Meanwhile across the Atlantic sales were reportedly “very weak” in North America – down 9 per cent in October and -4.2 per cent year-to-date.

Reflecting on the data, Deutsche Bank analysts observed: “We think that 2007 could be a very good year for Michelin, which will benefit from the payback of the attrition of the workforce and from the recent collapse of natural rubber price.” According to the analysts the effect could be so marked that the company achieves Deutsche’s 2008 earnings per share predictions (7.80 euros) in 2007.

The recent Deutsche Bank report sourced its data from leading French manufacturer, Michelin. The suggestions of a positive October are in line with anecdotal data from the UK wholesale market.