Michelin: Global Replacement Tyre Demand Improving, OE Remains Weak

Global OE tyre demand remained week in July, according to figures released by Michelin. However, the data also shows that, while global OE tyre demand continues to take a beating, there are signs of recovery in most replacement segments. However, Some of the least improved figures are in the European truck replacement market, where analysts described the status quo as “very poor.” Here July’s sales were -17 per cent down (-29 per cent year-to-date).

In both Europe, across both the passenger car tyre and truck segments OE tyre sales remained down by between 25 and 50 per cent. European passenger car OE tyre sales were down approximately 25 per cent in July (-40 per cent year-to-date), while truck tyre OE figures were almost twice as bad with OE tyre sales down 50 per cent in July and -60 per cent year-to-date.

The good news is that replacement market sales are improving and, while still not yet positive, are considerably better than they were. In Europe passenger car tyre replacement sales were down 6 per cent in July and -11 per cent year-to-date. In North America pass-car replacement tyre sales actually grew 3 per cent in June, however this figure is still down 9 per cent year-to-date. According to the figures, North American Truck tyre sales were down 2 per cent in July and -15 per cent year-to-date.

Commenting on the figures, Deutsche Bank analysts said: “We still expect a small volume decline in the third quarter (-5 per cent) and a small recovery in the fourth quarter (+5 per cent) on a very low base) after a 20 per cent decline in the first half.