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UK trend towards Budget segment continues in smaller UHP tyre dimensions – GfK

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Giti Tire

Retail sales at the lower end of the UK’s ultra-high performance tyre segment have seen a trend away from premium tyres, with the third-tier Budget segment continuing to increase its share, according to the latest panelmarket data from market analyst GfK. In last year’s edition of our feature on the UHP Tyre segment, Tyres & Accessories noted that there are three long-term factors at play in causing the sector dynamics we are currently witnessing: OEMs’ continued move towards the specification of 17” and 18” tyres on mass market, sub-premium car models; macroeconomic conditions in the UK, which have led to increasingly expensive retail goods at the same time as soaring borrowing costs and extremely soft growth in both the economy and wages; and the expansion in availability of low-cost tyres from sub-Premium, sub-Mid Range tyre manufacturers.

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Related news:

  1. High rim diameter tyres are West, Central Europe replacement car tyre growth segment
  2. West, Central European replacement tyre market accelerating towards larger tyres
  3. Higher rim size car tyre sales rising in UK’s stratified recovery – GfK
  4. Budget segment making inroads in UK high rim diameter tyre market – GfK
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High rim diameter tyres are West, Central Europe replacement car tyre growth segment

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Using its broadest possible definition as tyres with rim diameters of 17” or more, the ultra-high performance tyre segment is the only engine of growth within the replacement passenger car and light truck (PCLT) tyre segment in West and Central Europe, the latest data and projections from leading tyre business analyst Astutus Research demonstrates. Having withstood the Covid pandemic and accelerated out of 2021 far quicker than smaller rim diameter segments, the 18”-plus segment especially is going to help bolster what little growth there will be in the PCLT tyre market within the region, while also taking market share from smaller sizes. With the electrification of the car parc bringing EVs with generally higher rim sizes, in addition to existing trends towards larger tyres, such as the popularity of SUVs, demand for tyres in this size segment will rise rapidly over the next few years, Astutus’ projections show (see the graphs on these pages for more details).

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Related news:

  1. West, Central European replacement tyre market accelerating towards larger tyres
  2. OE deals demonstrate expanding Yokohama Advan range’s qualities
  3. Pirelli: EV fitments growing at double 2022’s rate, brand most-seen on new EVs at IAA Munich
  4. Davanti unveils wave of new product, partnership news at first conference
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BEV demand may stall next year – Bloomberg Intelligence

Chris Anthony/Tyrepress

Legacy brands have started to pull back on battery-electric vehicle (BEV) ambitions, and Bloomberg Intelligence’s (BI’s) new car buyers’ poll suggests demand will stall in Europe with consumers wary due to high BEV prices, range anxiety and a lack of charging points. A scaling back should support 2024 margins as lucrative ICE (internal combustion engine) profit faces less dilution from BEVs, while margins are likely to retreat at pureplays such as Tesla.

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Related news:

  1. Only 16% of European consumers opting for BEVs – Bloomberg Intelligence survey
  2. Electric vehicles, vans dominate April’s vehicle market
  3. Tesla resilience will continue to confound COVID-19 crisis – GlobalData
  4. Bridgestone Enliten technology gets premiere on Volkswagen ID.3
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Are the wagons or vultures circling at Goodyear? Analysing Elliott Investment Management’s case for change

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Elliott Investment Management L.P.’s 11 May open letter to Goodyear’s board of directors sent shockwaves through the company and the markets. Essentially, Elliott’s expounded on its “deep conviction in the opportunity for Goodyear to improve after more than a decade of underperformance”, which was widely interpreted as laying down the gauntlet to Goodyear’s board and most senior executives. With Elliott calling pistols at dawn in the mid-west, the question is: is it time to buckle up and circle the wagons in Akron or are vultures circling over Goodyear? Here, Tyres & Accessories presents an in-depth analysis of Elliott’s arguments for enormous change, critically evaluating the problematic areas Elliott identifies along the way. In order to support our analysis, we spoke to senior executives close to Goodyear, those with first-hand management experience in Akron, financial analysts and third-party market researchers.

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Related news:

  1. Goodyear implements direct online sales in US
  2. Goodyear set to buy Cooper Tire for US$2.5 billion
  3. Cooper shareholders approve Goodyear merger
  4. Sentury internationalising with US tyre factory investment
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European imports of OTR tyres continue rapid growth trend – Astutus Research

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Zeppelin Systems

The United Kingdom and European Union is importing an increasing tonnage of Off-The-Road (OTR) tyres, as the sector responds to internal and external trends. Externally, sinking shipping costs and relatively controlled production costs are particularly favouring Asian manufacturers. And with Russia’s war on Ukraine making the country a pariah in European trading terms, there are additional reasons to source increasing numbers of OTR tyres from South Asia. Trading relations with Russia’s closest supporter Belarus are also frosting, which could see further gains for Asian factories, while emerging tyre producing nations like Serbia could also reap the benefits. While the size, weight and per unit cost of the largest tyres could present arguments in favour of more localised production, lower manufacturing and materials costs weigh even more heavily in this balance of factors.

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Related news:

  1. Decennial shift in global PCLT tyre volume market share
  2. EU-27 plus UK tyre imports rise 11% as winners and losers emerge from turbulent market
  3. European car tyre imports rise despite apparent risks of offshoring production
  4. Elgitread: Preparing for Market Breakthrough
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Higher rim size car tyre sales rising in UK’s stratified recovery – GfK

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Pirelli

Challenging trading conditions persist in the UK thanks to various interlocking crises, though 2022’s replacement tyre market demonstrates the way some segments resisted the strong headwinds better than others. While overall tyre sales (units) were basically flat versus 2021, any anticipated surging recovery from a pandemic induced nadir was, broadly speaking, put off for another year. Contrastingly, the value of the overall market surged, though this effect was more due to inflation and increasing prices than a switch towards higher-value products. Having said this, the picture painted by analyst GfK’s data, based on the company’s “panelmarket” of tyre retail sell-out sources from January to December, is also one of stratification.

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Related news:

  1. All-season tyre growth, especially for premium brands – GfK
  2. Long-term trend shows winter tyres receding, all-season rising in UK
  3. Polarised brand tier growth in UK van tyre market
  4. Covid year a catalyst for UK light vehicle tyre market trends
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Recent Western Europe car tyre production decline ‘similar to financial crisis’ years

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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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Related news:

  1. Decennial shift in global PCLT tyre volume market share
  2. Michelin the number one consumer researched tyre brand: Tyre Reviews
  3. 3 tyres rated ‘exemplary’ in Auto Bild’s winter tyre test
  4. Goodyear: New EfficientGrip Performance 2 tyre offers 20% more mileage than Michelin
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West, Central European replacement tyre market accelerating towards larger tyres

With a wave of new ultra-high performance products from global brands arriving in the post-pandemic market, Tyres & Accessories looks at data supplied by specialist tyre industry analyst Astutus Research showing just how quickly the market for high rim diameter (HRD) tyres is now growing in Western and Central Europe (this data excludes Russia, Ukraine and the rest of Eastern Europe).

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Related news:

  1. OE deals demonstrate expanding Yokohama Advan range’s qualities
  2. UHP tyres one-third of European replacement market by 2024: Astutus
  3. 10-year tyre trends show how UHP segment beat the pandemic
  4. Tyre manufacturers to lose $2bn in OE revenues due to semi-conductor shortage
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Polarised brand tier growth in UK van tyre market

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Ford

While van manufacturers have been both developing their electric portfolios and sustaining a double-digit sales contraction in a pandemic affected market, the picture for van tyre suppliers is certainly not as hostile. As we will see in this feature, the requirements of e-commerce and electric vehicles are providing new impetus to van tyre suppliers in the medium term. But 2020 UK figures generated by market data analyst GfK’s Point of Sales Tracking show that the segment is faring better than many with the travails of this year. At the same time, several trends are coalescing to improve the fortunes of van tyre suppliers.

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Related news:

  1. Long-term trend shows winter tyres receding, all-season rising in UK
  2. All-season tyre growth, especially for premium brands – GfK
  3. GfK: UK still amongst largest and fastest growing SUV tyre markets
  4. How the UK aftermarket is enduring Brexit and lockdown weather
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MOTs worth £177 million a year in UK tyre sales

Autotech

Together, the increased utilisation of independent contractors on the supply side and record online search figures on the demand side show that MOT testing is booming. Considering that MOTs were put on hold for roughly four-and-a-half months between March and August (let’s not even mention the Northern Ireland MOT crisis), this is good news. Word of a coming MOT spike will be warmly welcomed by the tyre and aftermarket associations that lobbied government for the end of the MOT extension on both road safety and economic grounds. But what exactly does the apparent boom look like? And why does it matter to the tyre trade?

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Related news:

  1. Still going strong: 4×4 tyres continue to overcome obstacles
  2. MOT test demand set to spike in 2019
  3. MOT exemption starts on 30 March 2020
  4. NTDA: MOTs are central to vehicle safety
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How the UK aftermarket is enduring Brexit and lockdown weather

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Perfect Storm? How the UK aftermarket is enduring the Brexit and lockdown weather (Photo: Herbert Santos; Pexels)Herbert Santos; Pexels

The last time Tyres & Accessories took a close look at the aftermarket sector back in July 2019, we took the optimistic view that the UK aftermarket space would be able to weather the Brexit storm. Of course, back then Brexit and trans-Atlantic trade wars were the most significant pressures on aftermarket parts segment. Now, however, things are considerably more complex and unpredictable. So, in this analysis we examine the most recent pre-lockdown data as well the latest mid-lockdown information in order to answer the question: is the UK aftermarket still weathering the storm?

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Related news:

  1. Tyre dominance in overall aftermarket beginning to diminish
  2. MOTs worth £177 million a year in UK tyre sales
  3. All-new policy?
  4. Long-term trend shows winter tyres receding, all-season rising in UK
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Automotive outlook worsens

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The global recession triggered by the COVID-19 pandemic is darkening the automotive sector’s short- and medium-term outlook given the prospect of steep declines in demand in North America and developing countries in 2020 in addition to Europe and China.

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Related news:

  1. Toyota pausing production at European plants
  2. Auto industry will look to China for rebound insights – GlobalData
  3. Continental producing medical hoses in Italy
  4. ‘Drastic decline’ – ETRMA releases members’ Q1 2020 sales figures
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Decennial shift in global PCLT tyre volume market share

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The latest global tyre market share figures from tyre industry analyst Astutus Research show how long-established, leading players headquartered in Japan, Europe, and North America have seen their volume share diminish, while Chinese, ASEAN, and selected other markets’ tyre manufacturers’ share has risen. The analyst states that in aggregate, the ten leading PCLT tyre manufacturers based in Japan, Europe and North America (J-E-NA) have lost almost 6 percentage points of market share since the end of 2011 (OE and replacement segments combined, volumes in tyre units). In part this reflects a strategic choice of some to focus on the higher value premium segments of the market.

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Related news:

  1. Zhongce Rubber enters global top ten tyre manufacturers
  2. Giti enters the top 10 of leading tyre manufacturers
  3. Shifts in leading tyre manufacturer rankings, 2015-2019
  4. Pirelli, Hankook continue close rivalry in list of Leading Tyre Manufacturers
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NatWest: Sustained drop in UK automotive sector output highlights need for collaboration

NatWest’s latest UK Automotive PMI report registered the sharpest downturn in business conditions across the UK automotive sector for six-and-a-half years. At 43.5 in May, the headline seasonally adjusted UK Automobiles & Auto Parts PMI – a single figure measure of developments in manufacturing conditions – registered below the crucial 50.0 no-change threshold for the second month running. The latest figure was down from 48.9 in April.

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Related news:

  1. UK car manufacturing rising – SMMT
  2. Arrest made in connection with Yorkshire tyre fire
  3. AA calls for flood signage rethink
  4. Research shows speed cameras responsible for bad driving
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21 million more electric vehicles expected worldwide by 2030

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Deloitte’s latest electric vehicle (EV) research shows the pace of global EV adoption, rising from two million units in 2018, to four million in 2020, 12 million in 2025, before rising to 21 million in 2030. By 2030, Battery Electric Vehicles (BEVs) will significantly outperform the rest of the EV market, accounting for 70 per cent of total EV sales.

Read more

Related news:

  1. Connected cars to boost UK employment
  2. Jaguar files electric car patents
  3. Horiba Mira and Coventry University launch Autonomous Vehicle research centre
  4. Maxxis gets huge e.GO boost with European partnership
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