Stale Economy Pushes European Tire Shipments Down in 2012

After two consecutive years of modest growth in total tire unit sales, European tiremakers are reporting double digits drops across the board in 2012.

While previous market growth can be qualified by the fact that the increases came despite a decrease of ETRMA member marketshare, it is clear that the economic crisis is far from being over.

ETRMA’s secretary general Fazilet Cinaralp commented on the “worrying” data and pointed to part-worn sales as a possible explanation: “This is the lowest market volume since more than seven years. This may be caused by lower mileage per car, the decision by the consumers to delay the purchase of new tires or to choose second-hand tires instead of new ones. The latter emerging trend could have severe consequences on the safety of the vehicles on European roads, as second-hand tires could become over-used – and illegal – very quickly.”

According to ETRMA, consumer replacement tire shipments fell 13% in 2012 compared to the year prior, and replacement truck tire shipments dropped 19% year-on-year. Agricultural tire shipments were down 11% vs. 2011, as were motorcycle/scooter tire shipments.

Furthermore, demand for winter tires was described as “saturated,” resulting in a drop of 20% in 2012. However, ETRMA does not believe that this scenario is something its members alone are experiencing, stating that data for imports from non-European manufacturers are showing a similar trend. The suggestion is that lower miles driven and increased part worn sales are affecting everyone.

In this context, ETRMA supports a rapid implementation of the CARS 2020 Action Plan announced by the European Commission in November 2012. “We hope,” said Cinaralp, “that the action plan will bring a gleam of light in this very grim scenario by promoting investments in innovation, skills and training, promoting better regulation, and sanctioning unfair market players through more effective market surveillance.”