US tyre shipments to be down 13 percent - RMA

ERJ staff report (DS)

Washington DC -- US tyre shipments are projected to drop by approximately 13 percent in 2009 primarily due to sharp decreases in demand for original equipment manufacturer (OEM) passenger and commercial truck tyres, according to the Rubber Manufacturers Association.

Total 2009 tyre shipments are projected to decline approximately 36 million units to 246 million units. This decrease reflects the difficult economic environment for automotive manufacturers over the past year, continued low consumer confidence and high unemployment. Tyre shipments peaked at 321 million in 2000.

Vehicle miles traveled is on par with 2008 levels as the domestic economic conditions for both the consumer and commercial sectors appears to have stabilised and are poised for a rebound in 2010. As a result, the tyre industry is expected to realise a nearly 6 percent growth in 2010 reaching the 260 million unit level.

The RMA said OE shipments of passenger car tyres are likely to be down by 43 percent at 22 million units. On the replacement side, the RMA said, Shipments will decrease approximately 12 million units to nearly 180 million units for an approximate 6 percent decline. Growth is anticipated to resume in 2010 with the replacement sector estimated to increase by approximately 4 million units, or about 3 percent, as economic conditions improve. Non-RMA imports accelerated in July and August prior to imposition of a three year Chinese import tariff on Sept. 26th. These imports are anticipated to drop off dramatically in October and remain at depressed levels through the three year period.

The forecast for heavy truck tyres is for a rebound in 2010, as pent-up demand is realised. In OE. the RMA said a nearly 41 percent decline to approximately 2.3 million units is anticipated for 2009 -- a decrease of approximately 1.6 million units. The economic rebound anticipated for 2010 along with pent up demand for vehicles is projected to result in a net gain of approximately 350,000 units. On the replacement front, the RMA said te market is anticipated to decrease by approximately 2.3 million units in 2009 to nearly 12.6 million units. Given the uneven economic rebound forecast for 2010, this market is expected to increase by less than 1 million units to nearly 13 million units.

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Press release from RMA