MARKET DATA
…but price erosion has forced mid-range prices down too Elsewhere in this feature we have examined sell-out data, which revealed a growth trend in the UHP segment as well as details of which UHP sizes are most popular. However, this dataset was not designed to show the prices consumers are being quoted in relation to […]
After 20 months of development and two delayed launches, Encircle Marketing has rolled-out the first phase of its new corporate website and reporting centre.
According to the company, the completely re-built corporate site coupled with user login portal, gives Encircle a fresh and modern look after eight years of reporting to the tyre industry.
Tyre manufacturers are reporting that UK truck tyre replacement demand is steadily shifting to 315/70 R22.5 fitments over traditional sizes such as 295/80 R22.5. According to Michelin, which published a statement on the trend on 4 May, the trend is being driven by the growth of Euro VI registrations and “operators realising the total cost of ownership benefits offered”.
The European tyre market is up, but imports are growing too, meaning ETRMA members are not benefiting from the increase as much as others. At the same time, the retread market decreased for the fourth consecutive year, and in 2015 it expected to plunge a further 10 per cent to 4.2 million tyres.
Avis UK has released findings from business traveller behaviour and attitude research showing that UK businesses are the most frequent renters of cars. While the results do not refer to tyre consumption directly, the trends picked up in the research do inform the tyre market.
On the one hand, a steadily growing economy and healthily increasing commercial vehicle registrations figures appear to point to a bright future for the UK truck tyre segment. However, on the other hand, the situation is complicated by the increasing imports of low-cost and often un-reported Chinese tyre imports – something that is particularly affecting both current and future retread sales, owing to these products’ lack of retreadability.
Following on from the publication of European tyre sales figures relating to car, truck and agricultural products sold in the first half of 2015, European tyre association ETRMA has also release two-wheel tyre demand data. In short, the performance of the two-wheel sector appears to be somewhere between the relative success of car and truck tyres, but not as bad as the declining agricultural tyre figures of the first report.
At the start of 2015 we examined the wider car tyre segment as part of Tyres & Accessories February’s “Passenger Car Tyre” feature. In short, we examined the spectrum of figures offered for the size of UK demand and found that most sources settle between 31 and 38 million units a year. Interestingly, some of the latest data points to the market being at the higher end of the spectrum – something that has not been very widely or openly acknowledged in the past.
At the start of the year that ATS Euromaster marks its 50th anniversary, the leading tyre retail chain is kick-starting 2015 with the welcome news that it has returned to profitability after a challenging few years in the red. According to executives, this comes as the result of the successful implementation of a five-year turnaround plan and means ATS Euromaster is on-track to significantly increase profits over the next couple of years.
In 2013, about 0.74 million units of commercial vehicles and passenger cars were sold in Saudi Arabia, giving the Kingdom one of the highest per capita vehicle totals globally. However, virtually all of this is imported as Saudi Arabia is also home to a huge vehicle production deficit. Nevertheless, a new report distributed by Bharat books suggests expanding growth potential in the automobile sector is attracting several vehicle manufacturers to Saudi Arabia.
Our review of the year at the end of last year, pointed out how many sources had expected better times for the tyre retail market in 2014. Now as we move forward into 2015, Tyres & Accessories examines the current case for the demand recovery in the market. Many of the wider economic indicators point to broad economic recovery. At the same time pay is rising and inflation is levelling off at around 1 per cent, meaning household incomes should be rising. Furthermore fuel prices are lower than they have been for years. And of course, all this should lead to greater tyre sales volumes and even improved product mix. It is customary to be positive and even optimistic at this time of year, wishing everyone a happy new year etc, but the question remains with regard to our tyre market predictions – will it?
The tyre market in Thailand is forecast to grow at a CAGR of more than 12 per cent between 2014 and 2019. Anticipated double digit growth in automobile production, expanding automobile fleet size, upcoming important infrastructure developments and growth-focused initiatives being undertaken by the government are expected to propel tyre sales in the country through 2019.The two-wheeler tyre segment accounted for the largest market share in 2013, followed by commercial vehicle, passenger car and OTR tyre segments. While the two-wheeler tyre segment is expected to retain its dominance, in volume terms, in the Thailand tyre market, the passenger car tyre segment is expected to surpass the commercial vehicle tyre segment and capture the second largest market share by 2019.
The tyre market in the Philippines is forecast to grow at a CAGR of about 13.85 per cent between 2014 and 2019, according to a report published by TechSci. The report suggests the growth will be fuelled by a growing vehicle parc, infrastructure development and growth-focused initiatives taken by the government. While two-wheeler tyres accounted for a majority of the market share in 2013, the NCR region remained the highest contributor in tyre sales due to a large population living in the region and rapid development in industries located in the region.
Continental executives opened their annual market trends briefing in London with the positive assertion that the 2014 UK car tyre market demand is stable at roughly 35 million tyres for the year. Conti’s definition of the market includes imported tyres, 4×4 tyres and part worns, so this figure is broadly in line with other estimates.
Without being too dramatic, 2014 was a bit of a disappointment. All the macroeconomic and sector-specific indicators seemed to point to 2014 being the year when the tide turned and when sell-out replacement tyre volumes finally started growing again. And yet the market looks like it is going to be down again when the full-year 2014 figures come in. Despite being a fully mature market, the UK car tyre replacement sector has basically been on varying degrees of a downer for the last six years. Things are not as bad as they were, but they certainly aren’t showing the signs of slow, stable growth they once were. With all this in mind, Tyres & Accessories spoke with GfK automotive account director Kevin Glynn in order to get a handle on what happened this year and what we can expect in 2015.
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