Global tyre sales show slow-down in rate of decline

ERJ staff report (DS)

Paris - Michelin has updated its website with tyre market data for the month of July. The July figures show further universal declines in demand, with two exceptions: a surprise increase in replacement car tyre sales in North America and improved car tyre sales in China. Truck tyre sales are still falling all around the world.

In the OE truck tyre segment, every market in the world fell in the month of July and for the first seven months. Chinese sales continued their decline after a brief respite earlier in the year. Europe's sharp decline has continued. The year so far saw a dramatic 67.4 percent decrease in European sales with no sign of short term recovery. The site gives only percentage changes, not absolute numbers. July's sales fell by an appalling 68.7 percent year on year, a tiny improvement on the 70.2 percent fall seen in June. The dreadful decline in North American truck OE sales has continued, with sales in the first seven months down by 46.6 percent, nearly matched by a fall in July of 39.3 percent.

The Brazilian market's sharp slowdown continued in July. The year to date showed a fall of 31.3 percent, with the July figures down by 37.3 percent. Japan's situation is no better, with sales in the year to date running 62.4 percent below the same period in 2008. July's decline was almost as bad, at 53.9 percent lower than the same month a year ago. Even China reversed the small hint of recovery seen earlier in the year, with OE sales down by 5.4 percent in the year to date, and a 4.6 percent fall in the month of July.

Truck replacement tyres in July showed a similar picture, though marginally less bad. European truck tyre markets fell by 29.1 percent in the first seven months, eased slightly by a 16.6 percent decline in July. North America fell by 15.1 percent in the year to July, but the decline in July was just 2.2 percent in the year-on-year figure. In Brazil, a year-on-year fall of 17.2 percent accelerated the seven-month figure to a decline of 21.9 percent. The sharp decline in Japanese truck tyre sales eased somewhat in July, down by 30.9 percent in the year to date and by 12.0 percent in the month of July. China sales for the month fell by 6.8 percent in July, bringing the decline in the first seven months to 7.7 percent.

As has been recorded elsewhere, the OE car business continues to struggle, though the figures in July are an improvement on the June numbers. Michelin said the total European OE market for car tyres in the seven months to July 2008 was down by 31.7 percent, while the year-on-year figure for July dropped by 22.1 percent. The North American market continued its downtrend, with the equivalent figures showing a decline of47.9 percent for the seven-month period and a year-on-year decrease in July of 29.1 percent.

China, however recovered sharply. OE demand in China was up by 28.1 percent in the year to date and up by 10.0 percent in July

In the replacement business, the decline in Europe continued. In July the seven-month figures showed a fall of 11.2 percent while the one-month figure fell by 5.8 percent. In North America, the replacement market fell by 8.6 percent in the first seven months, eased somewhat by a surprise increase of 3.4 percent in the most recent month.

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Press release from Michelin