Tyre Shipments to Increase ‘Slightly’ in 2007: RMA

(Akron/Tire Review) The Rubber Manufacturers Association (RMA) expects tyre shipments this year to “increase slightly” compared to 2006. Limited growth in the replacement tyre market will be offset by decreases in the OE markets, the RMA stated. In 2007, the replacement tyre markets will show an increase of 1.4 per cent, with OE markets declining 3.8 per cent.

“Overall, combined OE and replacement shipments for 2007 auto and truck categories are anticipated to increase by just over one million units to approximately 307 million total shipments,” according to the RMA’s Tire Market Analysis Committee. Additional forecasts for the group include the following:

• The OE passenger tyre market is projected to decrease in 2007 by approximately 2 per cent, to 47.3 million units, compared to 2006. Beginning in 2008, however, domestic light vehicle sales and production will increase. This, combined with the rising popularity of crossover utility vehicles fitted with OE passenger tyres (rather than light truck tyres), is expected to have a positive impact in this category.

• Slightly more then 5 million OE light truck tyre units are forecasted to be shipped in 2007, representing a gain of approximately 1per cent over 2006 levels, as a result of increases in domestic light truck production. Future growth in this sector will be slight, as consumers opt for smaller-sized sport utility and light truck vehicles fitted with P-metric passenger tyres.

• OE medium/wide-base/heavy on-highway commercial truck tyre shipments will decrease 21 per cent for 2007 (approximately 1.4 million units less then the 6.8 million units shipped in 2006), while sales of commercial truck vehicles experience a sharp drop as changes in EPA regulations pulled forward 2007 demand into 2006. Future growth is expected to be erratic due to additional EPA emission regulations taking effect in 2010.

• The passenger replacement market will increase by 1.4 per cent to approximately 199 million units in 2007, representing a gain of 2.7 million units over 2006’s shipments. The P-metric tyre market is projected to grow more than 7 per cent, and the high and ultra-high performance tyre markets are projected to increase more than 7 per cent and 11per cent, respectively, compared to 2006, RMA stated. Overall, the passenger replacement market will continue to increase by approximately 2 per cent through 2009, according to the association.

• The replacement light truck tyre market segment is projected to increase by approximately 800,000 units to 34.4 million units in 2007, with continued growth through 2009 at an average annualised growth rate of approximately 2 per cent.

• The replacement medium/wide-base/heavy on-highway commercial truck tyre market is projected to be 16.9 million units in 2007. However, this category is also forecasted to realise an annualised growth of just less than 2 per cent through 2009, according to RMA.