ETRMA: European tire markets 'stifled by pressures on economy'

Brussels – The European replacement tire market remained subdued in the second quarter of 2023, the European Tyre and Rubber Manufacturers’ Association (ETRMA) has reported.

Stifled by global economic pressures, all tire market segments reported a negative development in the three months to end of June, according to ETRMA's latest quarterly analysis.

The replacement passenger car tire market fell 12% year-on-year with 49.5 million units sold, reflecting a decline in all three categories: summer, all-season and winter tires.

For the first six months, the segment posted an overall decline of 12%, with both summer and winter tires registering a negative trend compared to first-half 2022.

The truck and bus tire (TBR) segment reported a 28% decline year-on-year in the second quarter, with 2.5 million units sold – and an overall drop of 23% for the first half.

With sales down 34% to 180,000 units, the farm tire segment registered the sharpest year-on-year decline in the second quarter.

Over the six-month period, demand for agricultural tires fell 36%, following a 39% decline in the first quarter of this year.

The ‘moto & scooter’ two-wheeler segment reported a 10% year-on-year decline in the second quarter with 2.5 million units sold.

Overall, demand for these two-wheeler tires fell 6% during the six months to end of June.

“We have now seen negative evolution in all categories since the end of 2022,” said ETRMA secretary general Adam McCarthy.

The ETRMA boss linked the reversals to “slowing demand combined with rising costs throughout the value-chain, widespread inflation, and concerns over the global economic situation.”

Furthermore, McCarthy pointed to the impact of the continuing war in Ukraine, particularly on energy costs in the region.

The situation contrasts the first half of 2022, which according to McCarthy was characterised by “very strong sales, boosted by stock rebuilds following the Covid-induced lockdowns.”

For full-year 2023, ETRMA expects to see a decrease in replacement tire sales among member companies compared to 2022.

“Tires should not be discretionary spending; however, it is likely people are currently putting off buying replacements until the last moment,” McCarthy added.

ETRMA: Replacement tire sales in Q2 2023

Source: Europool ETRMA

*Consumer = Passenger car, SUVs and light commercial vehicles

n/s = not supplied