Global Tire Report: Industry on a solid footing

London - While the world’s leading tire makers head into 2023 amid continuing global economic and geopolitical turmoil, the sector will, in general, be able to address the looming challenges from a position of business strength.

Combined sales among the Top 75 global tire makers rebounded last year by nearly 13% compared the prior year, and by 6% more than the 2019 total. This follows on from a year-on-year sales dip of 8% in pandemic-hit 2020.

With a few notable exceptions – Taiwanese tire makers Nankang Rubber Tire Corp. and Federal Corp., both impacted by elevated US import duties – major tire makers achieved double-digit revenue growth in 2021.

Topping the new global tire makers’ table is Group Michelin, for the third straight year, with estimated global tire-manufacturing revenue of $26.3 billion, topping No. 2 Bridgestone Corp.’s $22.2 billion.

Goodyear was third again, but with the addition of sales from its Cooper Tire & Rubber acquisition, moved closer to the top two with 2021 revenue of $14.9 billion.

Continental AG and Sumitomo Rubber Industries Ltd stayed at nos. 4 and 5 respectively, but Pirelli & C. SpA, on the back of a 24% sales improvement, moved ahead of Hankook Tire & Technology Co. Ltd. for no. 6 on the ranking, despite sales growth of nearly 11% at the Korean major.

Yokohama Rubber Co. Ltd.  retained the no. 8 ranking with sales of $5.26 billion, ahead of China’s Zhongce Rubber Group Co. Ltd.

Cheng Shin Rubber/Maxxis International remained at no. 10 despite a sales gain of just 2% over 2020. Maxxis also was affected by the imposition of elevated import duties on passenger and light truck tires from Taiwan and Thailand.

With the addition of seven months of sales from Cooper Tire & Rubber, Goodyear’s revenue in 2021 jumped 41.9% over 2020. South Korea’s Nexen Tire nearly matched that, however, at 41.5%, while Titan International – benefiting from a rebounding agricultural sector – was in the same league at 41.4% growth.

The average operating income/sales revenue margin among 25 leading tire makers last year was 9.4%, up nearly two points versus fiscal 2020 and back nearly on par with 2019.

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.