Michelin anticipates ‘highly unsettled’ environment for 2022

Clermont-Ferrand, France – The Michelin Group expects marginal growth within its passenger car and light truck tire segment in 2022, in “a still highly unsettled environment.”

The French tire maker expects the segment to increase volumes by 0% to 4% over the year, as supply difficulties continue to weigh on the original equipment market in the first half. 

The group also projects ‘a gradual improvement’ in the OE sector in second half, said Michelin in its full year financial results 14 Feb. 

Michelin said it anticipated demand in the replacement markets to remain high, “without significant inventory building’. 

In the truck tire segment, the French group expects a growth of 1% to 5% in volumes, as OE demand remains ‘robust’ outside China, from already-high comparatives.

The replacement market is also set to remain strong, buoyed by freight demand in every region.

In the speciality sector, including construction, agriculture, two-wheeler and aircraft tires, Michelin said it anticipated markets to increase by 6% to 10%.

Here, the tire maker expects demand to ‘remain robust’ for mining tires, but “sanitary crisis and supply chain disruptions are complicating operations in the first half.”

Michelin also expects off-the-road tires to witness “fast growing demand”, and two-wheel tires to sustain growth.

Demand for aircraft tires is also set to improve from “still weak comparatives.”

For the full year, Michelin’s objective is to report segment operating income in excess of €3.2 billion, compared to €2.966 billion reported in 2021. 

The group also expects ‘strongly negative’ cost impact from raw materials prices, customs duties, transportation and energies during the year.