13 Dec 2022
Imports from emerging economies are becoming an increasing driver, according to leading analyst
Due to the global pandemic, overall light vehicle sales have been under pressure over the last 18 months to two years, Simmons said at the recent International Institute of Synthetic Rubber Producers (IISRP) AGM
“It looks like a very slow recovery and not until 2025-26 that we get back to pre-Covid levels of sales,” the LMC leader told delegates attending the event in Estoril, Portugal. Worldwide truck sales, meanwhile, “have been generally less affected.”
But while ‘miles driven’ are “pretty much back to pre-Covid levels, we now have higher fuel prices. So, it looks like we are going to get pressure on replacement tire sales from that,” said Simmons, who also noted a declining trend in replacement tire sales in emerging markets.
Among several positives, Simmons reported signs of improvement in the supply of microchips to the automotive industry – following around 18 months of shortages that, among other impacts, have stymied the OE tire market worldwide.
“The impression I get is that the situation is starting to ease: more so in the US. It’s a bit slower in Europe but starting to come back,” said Simmons. In China, he added, “there seems to be enough semiconductors, so when demand picks up, you will see a very rapid increase in sales.”
But, he cautioned, recovery in the microchip supply situation is happening just as headwinds around high inflation and possible recession are starting to impact the global tire market.
Read the full report in the November/December issue of European Rubber Journal magazine – online version also available in the Featured Content section under the Focus tab on the ERJ website homepage.
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