CARE Ratings Limited (CARE) has upgraded JK Tyre and Industries Limited (JKTI)’s credit rating from CARE A+ to CARE AA- and reaffirmed its short-term ratings of CARE A1+. The outlook has also been revised from Positive to Stable.
Financial analysts are reacting positively to the far-reaching restructuring measures announced by Continental AG yesterday that could cost up to 22 per cent of the 59,000 jobs in Germany alone.
OEMs are driving the rapid deployment of autonomous vehicles and the growth of sensor types that underpin the technology. With this in mind, ABI Research analysts recently forecast that there will be 8 million consumer vehicles shipping in 2025 that feature SAE Level 3 and 4 technologies (where drivers will still be necessary but are able to completely shift safety-critical functions to the vehicle under certain conditions) and SAE Level 5 technology (where no driver will be required at all). This, in turn, will help drive the shipments of vital Light Detection and Ranging (LiDAR) sensors that underpin the technology. As many as 36 million LiDAR units are expected to ship in 2025, corresponding to a market value of $7.2 billion.
Research and Markets published its “Global Commercial Vehicle Tire Pressure Management System (TPMS) Market 2017-2021” report in December. In it the analysts forecast the global commercial vehicle tyre pressure management system (TPMS) market to grow at a CAGR of 10.38 per cent during the period 2017-2021.
The 2017 tyre retail ranking continues the trend of recent years when it comes to the second group of five leading retail chains. For the last few years we have seen this “second tier” group grow steadily towards the top tier.
The East European market grew by over 5.1 per cent in 2016 and further growth is forecast for 2017, according to Clear International. The figure for 2016 is considerably lower than was anticipated at the beginning of the year and the difference is almost entirely attributable to developments in Turkey. Political instability had already undermined business confidence in early 2016 and then in mid year there was an attempted military coup. This had a dire and worsening effect on business investment resulting in 19,000 trailers being wiped from the Turkish forecast.
The electric vehicle (EV) market is booming. Approximately 25 new electric vehicle models are likely to be launched later this year with Chevrolet Bolt and Tesla Model 3 being the most anticipated. The availability of incentives and subsidies in the market, significant investment by original equipment manufacturers, new entrants, and lower battery prices are factors propelling double-digit growth. However, the lack of standardisation in charging technology, absence of a fixed business model, and short-distance range of EVs still need to be addressed.
The latest data from the Society of Motor Manufacturers and Traders (SMMT) shows that British cars are among the best maintained in the world, with UK motorists spending a collective £21.1 billion a year on servicing and repair. The data, which was released on the eve of the inaugural Automechanika Birmingham, forms the basis of the first official industry analysis of the UK automotive aftermarket. It also comes at the same time that Sainsbury’s bank has released data suggesting the average annual cost of running a car is around £2,197.42, 22 per cent – or £622 – less than 2013. The main reason for this change is that the cost of fuel has fallen by 37.8 per cent during this period.
Michelin has reported growing nine-month 2015 financials that show an 8.6 per cent increase in net sales to 15.8 billion euros, with unit volumes up 2.8 per cent. Both are figures that outperform market averages. Car and light truck tyre sales growth outperformance was particular strong, while truck tyre and specialty business volumes were only slightly higher than their market levels.
Automotive tyre manufacturers in Europe are focussing on electronic retailing (e-tail) to serve increasing customer preference for convenience and low prices, according to a new report published by Frost & Sullivan. Currently, tyre e-tail accounts for nearly eight per cent of the total tyre aftermarket in Europe. The report concludes that this figure will continue to rise as tyre manufacturers recognise the potential to access global markets through e-tail and invest in online sales and marketing tools to meet their growth objectives. Here Tyres & Accessories engages with the Frost & Sullivan data in order to better understand and begin to apply it to the current market context.
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