Conti lowers replacement tire estimates for 2023

Hanover, Germany – Continental AG expects replacement tire demand to develop by between minus 2% and 0% for 2023, down from an earlier positive-growth estimate of between 1% and 3%.

In its half-year financial report 9 Aug, Continental said sales volumes of replacement tires for cars and vehicles under 6 tonnes fell by 9% and 8% year-on-year in Europe and and North America respectively.

“Following an already weak first quarter, the second quarter saw a further slight decline in demand in both core regions,” the German group commented.

Continental linked the slowdown in demand partly to the expectation that prices may come down, causing consumers to “hold back on spending”.

In China, meanwhile, demand increased by 17% year-on-year for the first half, as Covid restrictions affected the prior-year figures.

Over the second half, Continental said it expects a slight improvement in demand in Europe for the remainder of the year.

However, for the year as a whole, Continental forecast sales volumes in Europe to decline year-on-year due to “presistently higher dealer inventories”.

In North America, Continental said, the market should remain at around the previous year’s level helped by “an anticipated significant increase in the fourth quarter.”

In China, after ‘catch-up effects’ in the previous year, the group expects a “somewhat weaker third quarter, followed by a significant increase in demand for the final three months of the year.”