Although the COVID-19 pandemic has contributed to a collapse in the European auto and tyre market, an increasing demand for truck tyres is offsetting the losses, while the tightening of environmental legislation is also seeing to a rise in “green” tyres which will also boost the market.
Sales of original equipment tyres fell 23%
Data published by IndexBox in the report “EU?Tyres?Market Analysis, Forecast, Size, Trends and Insights” shows that in 2020, European sales of original equipment consumer car tyres fell 23% (year-on-year) and 18% for trucks. In the replacement market, the decline was 12% for car tyres, 9% for motorcycle and scooter tyres, and 4% for truck tyres, while agricultural tyres sales remained unchanged.
Quarantine measures across many countries are attributed to the fall, as too are disruptions in supply chains. Manufacturers and distributors have accumulated large stocks of summer tyres produced in 2020, and winter tyres remained unsold owing to unusually warm weather. With surplus stock shored up in warehouses, production has been delayed.
Environmentally friendly tyres made from a silica-silane system are gaining in popularity amid tightening environmental requirements. “Green” tyres also bring better grip on wet roads, lower rolling resistance, and improve fuel efficiency compared with conventional tyres. For consumers deciding whether to “go-green” with their choice of tyres, a website such as Tiregom – www.tiregom.co.uk can help you find the most suitable tyres for your conditions?snow, summer or all-season, depending on your auto budget.
Germany leads in tyre production and exports
ETRMA figures from 2019 put Germany as the biggest producer on the continent, with 74M units, while Poland at 48M units, and Spain at 43M units, take up second and third place with a combined 38% share of total production. Following are Romania, Portugal, France, the Czech Republic, the UK, Italy, and Hungary, which account for a further 50%.
2020 figures by the International Organisation of Motor Vehicle Manufacturers show the following declines in sales by percentage: Germany (-24%), France (-39%), Great Britain (-29%), Italy (- 15%), Czech Republic (- 19%), Spain (- 20%), Poland (- 31%). Hungary showed significant growth between 2012 and 2019.
In 2019, shipments abroad of tyres decreased by 3.8% to 405M units, falling for the sixth consecutive year after two years of growth. Over the period under review, exports showed a perceptible decrease. The most prominent rate of growth was recorded in 2013 when exports increased by 10% year-to-year. As a result, exports attained a peak of 559M units. From 2014 to 2019, growth in exports remained at a lower figure.
Tyre exports declined to $27.5B in value terms in 2019, while the slow pace of growth was most pronounced in 2017, with an increase of only 7% year-to-year. Over the period under review, exports reached the peak figure at $32.7B in 2013; however, from 2014 to 2019, exports failed to regain momentum.
In value terms, Germany remains the largest tyre supplier in the European Union with a figure of $5.6B, comprising 20% of total exports. The second position in the ranking is occupied by France ($2.7B), with a 9.8% share of total exports, followed by Spain, with an 8.7% share.
2019 figures in terms of exports are: Germany (91M units), Poland (37M units), Spain (33M units), Romania (31M units), France (31M units), the Czech Republic (27M units), Italy (25M units), Hungary (23M units), Netherlands (21M units). Portugal (18M units), Slovakia (17M units), Belgium (14M units), and the UK (9.5M units) took smaller shares of total exports.
