Michelin: world tire market falls 6%

The global market for original equipment tires registered a year-on-year drop of 6% in the first quarter of 2022, according to Michelin estimates.

At the same time, the global replacement tire market was up 4% year-over-year.

In particular, in the truck and bus segment, in March 2022, global demand for original equipment continued to be penalized by weak demand in China, which continued as expected (very high base of comparison of the first half of 2021 with the entry into force of the China 6 standard in July 2021).

As for passenger cars and light trucks in March 2022, the original equipment business was especially penalized in Europe due to the impact of the conflict in Ukraine, and in China due to the worsening of the health crisis.

The company indicated that in replacement, the demand remains at high levels in Europe and North America.

On the one hand, in Europe, growth continues to be driven mainly by the all-season segment.

Passenger Car and Light Truck Tire Market

On the other hand, in North America, demand remains at a very high level comparable to that of 2021.

Meanwhile, in China, the worsening of the health crisis and the mobility restrictions imposed by the government are weighing down the demand for the month.

Michelin

Outside of China, demand remains at high levels near 2021, both in original equipment and replacement, driven by economic activity.

Global tire market estimates reflect sales data published by local tire manufacturers’ associations, in addition to Michelin’s own estimates of sales by non-association tire manufacturers.

These estimates are mainly based on import and export statistics and are expressed in the number of tires sold. They are adjusted periodically and may be updated after their initial publication.

At a time of sharp slowdown in demand due to the Covid-19 pandemic crisis, the global tire market totaled $153 billion in 2020, representing a decrease of 8% compared to 2019.

Light vehicle tires accounted for around 60% of total sales and truck tires 30%.

By volume, the market represented about 1.4 billion car and light truck tires and just over 200 million truck and bus tires.

About three out of four tires were sold on the replacement market.