Recent Western Europe car tyre production decline ‘similar to financial crisis’ years
Passenger car and light truck (PCLT) tyre production trends in Western Europe have been scaling down over the long-term. The move to larger production facilities in the comparatively low-cost labour markets in Eastern Europe, or greater reliance on imports from Asia, has seen a steady stream of plant closures and conversions to speciality, short-run production capacity – on in the case of Cooper Tire’s UK plant, for example, one followed by the other – in the region. A new assessment of the most recent three-year period by tyre industry analyst Astutus Research suggests that the overall picture has been of a decline similar to the period following the 2008 financial crisis, which was itself a catalyst for this trend. Yet digging a little deeper into the figures shows several dynamics at play in European PCLT tyre production, including supply chain disruption and spiralling energy costs. For comprehensive analysis of global tyre market trends, a series of reports by Astutus Research are available to buy now in the Tyrepress Reports Shop – click here for more details.
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EU-27 plus UK tyre imports rise 11% as winners and losers emerge from turbulent market
Since March, cumulative passenger car and light truck tyre imports to the European Union and UK have, for the first time, recovered to run above pre-pandemic levels. This is despite the well-documented impact of sharply higher ocean freight costs in this period, and disruption to production in some source countries. A newly published report by Astutus Research, “European PCLT Tire Demand and Supply Forecasts to 2026”, shows that in the first seven months of 2022, European (the EU-27 plus UK)* imports from outside the region were 11% higher than the same period last year and 5% higher than the equivalent pre-Covid period in 2019.
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Ukraine war’s impact on global tyre-makers acute for Nokian, manageable for others
The first month of Russia’s invasion of Ukraine has already revealed several consequences for mobility and the global tyre industry, as Tyrepress’s continuing coverage of the situation has shown. The resultant sanctions imposed on Russia by an international alliance and the response of multinational companies, at least 450 of which had scaled back their business in the country as of the publication of this article, will send reverberations around global economies. The tyre industry faces impacts on several fronts – higher fuel prices and further interruption to logistics chains and materials supply will have knock-on consequences for tyre sales that will unfold over the coming months. At nearly a month after the conflict began, tyre business analyst Astutus Research examines the immediate consequences for tyre manufacturing in Russia, as well as its neighbours Ukraine and Belarus. This analysis looks at the impact of events on the global manufacturers whose plants were collectively responsible for around 70 per cent of Russia’s passenger car and light truck (PCLT) output. For more Astutus Research analysis and forecasts for the global tyre business, see the report series ‘Beyond Covid-19’ in Tyrepress’s Report Shop.
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Recovery’s small steps show most valuable consumer, light commercial tyre segments
The 2021 recovery of the UK car, SUV and van tyre (Light Vehicle) replacement market may not have been the desired quick return to pre-pandemic numbers, but GfK data supplied exclusively to Tyres & Accessories gives us some idea of how 2019 market growth areas have preserved continuity through the last two Covid-afflicted years. Tyres designed for the larger rims of higher performance and newer car models, SUV and light commercial vehicle tyres, and tyres offering performance in all seasons continued to grow at quicker rates than the whole UK replacement tyre market. These overall figures, shown in the top left-hand corner of the infographic, show that unit sales increased by three per cent within the panelmarket – similar figures comparing 2020 with 2019 published in February 2021 showed that unit sales contracted by 14 per cent for comparison. Meanwhile, the value of the UK’s Light Vehicle tyre market rose by seven per cent according to the panelmarket. GfK’s panelmarket data tracks points of sale around the UK to indicate aftermarket tyre trends – the data used for this article compares January-December 2021 to full-year 2020.
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Tyre manufacturers to lose $2bn in OE revenues due to semi-conductor shortage
Astutus Research says that the shortage of semi-conductors and other vital components will lead to $2 billion (around £1.5 billion) in lost original equipment tyre revenues in 2021. The analyst notes that demand for new cars is not a factor in the slump in OE stream sales versus expectations, and that a rebound is expected in the coming years when component supply has returned. Astutus Research is currently offering a new report series via Tyrepress, presenting tyre industry forecasts in the wake of Covid-19, which takes into account such dynamics. The series, entitled ‘Beyond Covid-19’ offers market leading data on global original equipment and replacement passenger car and light truck tyre segments. It also offers region-specific PCLT tyre data for Europe, the Americas, and Asia Pacific. A full summary of the 11 available PDF reports with accompanying Excel data-books is available here.
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Interview: Continental’s Tires head Christian Kötz on tyres, sensors and sustainability
With Continental AG celebrating 150 years in business during 2021, Tyres & Accessories recently interviewed Christian Kötz, Head of the Tires division and member of the Continental AG Executive Board in order to get an insight into how the global company is handling the challenges of today in light of its long history. Tyres & Accessories: Continental celebrated its 150th anniversary in October. For a large part of its history Continental has been primarily known as a tyre manufacturer. But what does the Tires business unit mean for Continental today?
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Goodyear, Michelin, Lodge and Vaculug amongst winners of government fleet tyre contracts worth £200 million
Following the news that Goodyear has retained the UK police fleet tyre contract, Tyres & Accessories contacted Crown Commercial Services in order to confirm which other tyre firms have succeeded in winning their part of the two government tyre supply contracts which together are worth an estimated £200 million.
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How quickly is the European electric car tyre market growing?
The rise of electric vehicles, continuing to set a good pace of growth in UK and European markets despite the difficulties facing new car sales over the last 18 months, is one of the central pillars of mobility’s dominant megatrend, sustainability. Given the UK’s growing demand for the various forms of electric-powered cars – battery electric (BEV), hybrid (HEV), plug-in hybrid (PHEV), and mild hybrid electric (MHEV) – it is clear that servicing this section of the market will be vital in the long-term to tyre fitters. At the same time numbers remain relatively small in comparison to the level of interest they generate, though the growth is impressive.
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UK’s LCV tyre market retained 2019 value in 2020 – GfK
The UK light commercial vehicle tyre market had a relatively dynamic year in 2020, with value and volume changes in certain sub-segments driven by an increase in higher rim diameter tyre sizes, as well as increased demand for all-season – and even winter – performance. According to GfK panelmarket data, which tracks points of sale, comparing the calendar year 2020 to 2019, these growth subsegments supported a 2020 light commercial vehicle tyre market value change across all rim sizes of 0 per cent, while volume was down only -2 per cent. While LCV operators were not entirely immune to the effects of the Covid-19 pandemic and its attendant lockdowns, these figures show how the essential services supported by van operators, such as last mile delivery resulting from booming e-commerce, allowed LCV tyres to achieve results within touching distance of pre-pandemic norms.
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MOT-based tyre demand holds fast in 2020
With tyre specialists doing as much mechanical work as ever, and with autocentres representing a growing proportion of the top 25 tyre retailers, understanding the so-called aftermarket side of the business is important. When you add in the pandemic-related disruption, which includes the effects of the government’s six-month MOT extension – something that has caused a mini-boom and bust in the garage space – getting to grips with the latest trends and products in the aftermarket sector at this particular time is something of a priority. That’s why in this section July’s edition of Tyres & Accessories surveys the latest data, trends and products to help you prepare for what’s next. Our aftermarket feature starts with an analysis of the full-year 2020 MOT data from a tyre demand perspective.
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Torque from the Top – Paul Emery, UK sales director, Hankook
Continuing our recently-introduced series of interviews with leading figures in the UK tyre industry, Tyres & Accessories spoke with Paul Emery, UK sales director, Hankook Tyre UK. Tyres & Accessories: How has the pandemic impacted on your business? What changes have you made in day-to-day business? Torque from the Top is a regularly feature in the print edition of Tyres & Accessories magazine. Not a subscriber? No problem, click here to become one.
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Torque from the Top – Chris Smith, managing director, Michelin Tyre plc
Michelin has been in the UK since 1905, and it has been making tyres there since 1927 when its Stoke-on-Trent factory opened. Michelin’s Stoke-on-Trent plant still produces retreaded truck tyres, which use 70 per cent less raw material than a new tyre. Stoke-on-Trent is Michelin’s UK headquarters, and it is the global headquarters of Michelin Lifestyle – the manufacturer’s licensing operation. The Michelin Training and Information Centre pushes up standards, safety and knowledge through courses attended by tyre technicians and emergency services from the UK and overseas, while Michelin Development supports new and small businesses in selected regions. Michelin in the UK also produces the Michelin Guide Great Britain and Ireland, giving readers expert and independent advice on where to stay and where to eat, and listing restaurants worthy of a world-famous Michelin Star. Michelin UK has strong links with other Michelin Group companies in the country, including Camso, Fenner and Blackcircles.com. The Michelin Group employs more than 123,000 people globally. Tyres & Accessories recently interviewed UK managing director Chris Smith in order to get his view on subjects affecting the market today. Torque from the Top is a regularly feature in the print edition of Tyres & Accessories magazine. Not a subscriber? No problem, click here to become one.
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10-year tyre trends show how UHP segment beat the pandemic
The significant decline in revenue for global tyre makers based on headwinds from the Covid-19 pandemic was felt most keenly by companies with the greatest exposure to the consumer vehicle tyre markets. (For the effects of the crisis on manufacturers, see our ranking of the world’s top tyre manufacturers in the Company section of our 75th anniversary special issue.) As many countries reduced private mileage considerably with working from home orders and travel restrictions – not to mention the negative effects of measures such as the UK’s MOT freeze, which removed a significant push factor in the market for much of 2020 – car tyre sales last year dropped considerably, though again there were big differences even within the EU27 and UK. Within car tyre segments there were significant differences in the depth of the contraction too. Broadly speaking, the higher value the segment, the better it tended to fare. Pirelli’s financial reporting for 2020, and the subsequent first-quarter growth in 2021, provide a good illustration of how higher performance segments provided increased resilience in these difficult times.
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Government departments and local councils the 6th to 15th largest UK public fleet tyre customers
Completing this years public fleet tyre consumption analysis, positions six to 15 on our rundown of the top 15 largest public fleet tyre customers is dominated by government departments (led by Defra) and variety of local councils.
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The UK’s top 5 public fleets – tyre demand analysis
While Tyres-as-a-Service (Taas) is now coming of age in the passenger car tyre retail side of the business, TaaS arguably finds its roots in the fleet tyre trade. The wide-spread adoption of pence-per-kilometre contracts (otherwise known as PPK or CPK – cost per kilometre) means that both TaaS and PPK put the pre-sale of premium products front and centre. However, fleet contracts bring with them the massive advantage of scale, something that is all-the-more important for business planning in the kinds of challenging post-Covid economic circumstances the tyre business is currently encountering. That’s why June’s 75th-anniversary edition of Tyres & Accessories takes a closer look at the fleet tyre business in general, emphasising the trends and opportunities demonstrated by the tyre-buying habits of the biggest fleets out there.
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