Michelin: Tyre sell-in unit volumes weak in December

The latest tyre market data published by Michelin is being read as a warning signal by market analysts. The figures, which reflect demand trends in December and for 2012 as a whole suggest tyre sell-in unit volumes were weak. European light vehicle replacement sales, specifically, continued to slip (-7%), despite falling 19 per cent year—on–year in December 2011. Overall this is being interpreted as a response to a poor winter tyre season.

In response to the numbers, Morgan Stanley analysts report that they were surprised to learn that European truck replacement was down 6 per cent. According to them, this came as surprise as the market had began to recover in October and November.

NAFTA replacement market sell-in sales also dropped in both the light vehicle and truck segments, leaving Brazil as the only market reporting growth. That said, market watchers still characterised heavy truck tyre sell-in as “a disaster”, with this metric -38 per cent year-on-year in December and down -33 per cent in 2012 as a whole.

December 2012 / 2011
Market (Radial) Europe* North America Brazil

Original Equipment
-20%
-25%
-38%

Replacement
-6%
-4%
+11%

YTD (from January to December 2012)

Market (Radial) Europe* North America Brazil
Original Equipment
-4%
+2%
-33%
Replacement
-14%
-2%
-2%