ETRMA: Economic worries deflate tyre sales deflate in Q2 2023

Tyre sales in the European replacement market remained low in Q2 2023. The European Tyre and Rubber Manufacturers’ Association (ETRMA) reports negative evolution in all segments, with inflation driving costs increases that, combined with global economic insecurity, are stifling demand.

“We have now seen negative evolution in all categories since the end of 2022,” says Adam McCarthy, ETRMA secretary general. “This is being driven by slowing demand combined with rising costs throughout the value chain, widespread inflation, and concerns over the global economic situation. The war in Ukraine has contributed to increased energy costs. The situation is all the more striking when looking at the first half of 2022, which had been characterised by very strong sales, boosted by stock rebuilds following the Covid-induced lockdowns.”

Sales of consumer replacement tyres in Q2 2023 declined 12 per cent year-on-year, while truck and bus segment sales dropped 28 per cent and replacement agricultural tyre sales fell 34 per cent.

“Our forecast for the whole year is that 2023 will end up with a decrease of replacement tyre sales compared to 2022,” McCarthy continues. “Tyres should not be discretionary spending; however, it is likely people are currently putting off buying replacements until the last moment.”