Strong Truck Tyre Demand Means Short Supply in Europe

Truck manufacturers (Volvo and MAN) are reporting that supplies of truck tyres are running thin. This suggestion was confirmed, according to Deutsche Bank analysts report, following conversations with Michelin and Continental. The reason for the short supply is much stronger than anticipated demand, with OE and replacement sales up 12 per cent and 10 per cent respectively across Europe in the first four months of the year. The analysts characterise this as “good news for Continental since European truck sales represent approximately 7 per cent of group’ sales. It is said to be an especially good development for Michelin as European truck sales represent 18 per cent of group sales.