European OE Truck Tyre Market Swells, PCR Slips in August

Market data released by Michelin shows the European original equipment market for passenger car and light commercial vehicle tyres to have dropped 10.0 per cent year-on-year during August. Sales of these products have in the year to date increased 18.6 per cent in Europe, and our region was the only of the three reported markets to have suffered a decline; the North American OE market for passenger car and light truck tyres grew 34.0 per cent during August, while the China market increased 12.7 per cent. Both of these monthly results are lower than year to date growth figures, which for North America and China are 61.8 per cent and 40.5 per cent respectively.

Replacement passenger car and light commercial vehicle tyre sales increased 6.2 per cent year-on-year in Europe during August, slightly less than the year to date growth of 8.7 per cent. The North American market experienced a 2.7 per cent shrinkage while the Chinese market grew 24.8 per cent. Year to date market growth for these two markets is 6.3 per cent and 18.9 per cent.

In contrast to OE sales for car tyres, the European OE truck tyre market shot up 108.0 per cent year-on-year during the month of August, a figure way above the 22.7 per cent year to date growth witnessed so far. Growth was also seen in the OE sector in the North American, Brazilian and Japanese truck tyre markets, with these increasing 46.1 per cent, 61.9 per cent and 26.1 per cent respectively. The Chinese market suffered a year-on-year downturn for this segment, with sales decreasing 13.1 per cent in August. Year to date, the four abovementioned markets have grown 27.3 per cent, 60.6 per cent, 11.4 per cent and 10.3 per cent.

Replacement market growth for Europe’s truck tyre market stood at 22.7 per cent per cent year-on-year, slightly below year to date growth, which as of August is 25.8 per cent. Replacement truck tyre markets grew in every region during the month: North America, Brazil, Japan and China enjoyed respective year-on-year market growth of 16.2 per cent, 46.8 per cent, 6.0 per cent and 6.4 per cent. Year to date growth for these markets is 19.6 per cent, 36.1 per cent, 11.4 per cent and 10.3 per cent.