Analysts ‘surprised’ by European aftermarket performance

While opining that “Europe remains a structurally stagnant market,” Morgan Stanley Research Europe admits surprise at the level of growth seen in the light vehicle tyre replacement market during April. After 17 consecutive months of decline, the European (excluding Russia) light vehicle aftermarket grew eight per cent year-on-year during the month. Year to date, the segment is still down seven per cent year-on-year. Aftermarket European (excluding Russia) truck tyre volume also grew four per cent year-on-year during the month.

Morgan Stanley analysts have reconfirmed their view that inventory restocking, easier comps and mildly improving expectations can help Europe achieve the full-year growth it expects (two per cent for light vehicles, four per cent for trucks) and improve pricing from the third quarter.