Conti sees new sub-budget segment in truck tyres

ERJ staff report (DS)

London -- Continental's UK unit said the market for commercial vehicle tyres moved downmarket in 2009, but it expects to recover some ground in 2010.

In a presentation to journalists, the company said fleet operators had chosen to buy less expensive tyres as one way to deal with the severe market downturn during 2009. The company also added a new category to its market segmentation -- sub-budget brands, which are largely imported fromAsia, said the company.

In the UK, the company said this new segment took 4 percent of the total in 2009 and is expected to remain constant in 2010. Conti said the total market for UK truck tyres is down by 38.9 percent in the first 11 months of 2009. Furthermore, said the company, the premium brands suffered disproportionally, as fleets chose to buy cheaper tyres.

In the smaller Irish market, however, Continental said the premium brands were more significantly affected, and sub-budget tyres made up 10 percent of sales in 2009, and that share was expected to remain constant into 2010.