Conti: ‘Modest growth’ in store for UK truck tyre market

The latest forecast for the UK’s replacement tyre market for 2011 suggests volumes total 1 million units, which will be marginally down on the comparable 2010 figure of just over 1,050,000 units. Speaking at the recent Continental UK market trends briefing in London, new commercial vehicle marketing manager Tracey Hyem explained that the recent UK trend was at odds with the European experience, which has seen most other countries experience positive growth in replacement tyre sales with an average increase of 3 per cent overall.

Also in 2011 tyre availability across the market continued to be problematic for both customers and manufacturers. This was attributed to a quicker-than-expected demand for replacement and OE-fitment tyres following the recession. The situation has now stabilised and we are seeing that premium tyres are, under the economic circumstances performing well, but mid-range tyres are coming under increasing pressure from budget Chinese manufacturers.

Market segmentation

This year the goods segment remains the largest sector in the UK, accounting for 90 per cent of the replacement tyre market, while construction (5.5%), people-moving (4%) and winter tyres (0.5%) make up the remainder.

While this sector remains small, the addition of a definitive figure for winter truck and bus tyre sales in the UK last signifies the growing importance of this market. 2011 is reportedly the first year that winter tyres have gained a recognised market share (0.5%). This is said to be down to the heavy snowfalls in 2009 and 2010, which prompted hauliers and bus and coach operators to fit winter tyres to remain operational and additionally for safety.

Tracey Hyem, marketing manager commercial tyres, said: “On the whole the UK truck tyre market is almost on par with 2010’s figures, which, in the context of the current economic situation, can be seen as a positive. The retread market is one segment, which has remained stable over the year at just over a million units in the UK and Ireland, but as operational costs continue to escalate, we could see these tyres continuing to be an attractive option in 2012 as more and more operators look to optimise fleet efficiency.

“With this in mind, Continental has expanded its ContiRe range of retreaded tyres significantly with the introduction of key new sizes and second-generation patterns. The new tyre range will comprise of 33 different sizes next year for almost every application and in future our retread range will mirror the new tyre line-up. This will give operators the widest possible choice in choosing the right tyre for the right application at a cost to suit their budget”.

For the UK, the most popular tyre size remains the 295/80 R22.5, commanding 27 per cent of the market. In the first 10 months of 2011 the 315/80 R22.5 Regional steer and drive tyres enjoyed an upswing in sales over the last five years rising from 7 to 10 per cent. Other sizes like 245/70 R19.5, 265/70 R19.5 and 315/70 R22.5 have also enjoyed gradual increases in market share.

For 2012, Continental will be adding a number of new tyres to the range including updates to the 22.5-inch long distance steer and drive tyres. Furthermore, the third-generation trailer tyre, the HTL3, will be showcased in the third quarter and going on sale in early 2013.

Next year is reportedly shaping up to be an extremely challenging year for all industry stakeholders and legislative changes in the form of tyre labelling and Euro-6 will undoubtedly have an influence on the market (see separate article for more on this).