European tire sector still leads the way

European-based players remain to the fore in the latest ranking by sales of the world’s largest tire manufacturers, having adapted effectively to continuing business challenges and market disruptions.

Group Michelin weighed in again as the world’s largest manufacturer, with tire-related sales of $28.3 billion, well ahead of second-placed Bridgestone’s estimated total of $26.6 billion.

With sales of $12.4 billion, Europe’s next largest tire maker Continental AG retained its no 4 position – though the gap between it and third-place widened considerably on Goodyear’s addition of a first full year of sales from acquired Cooper Tire & Rubber.

By contrast, a strong performance by Pirelli, in no 6 slot, saw the Milan-based tire maker close the gap on Sumitomo Rubber Industry, one place above it in the 2022 sales rankings.

The solid year-on-year growth reported by the top three European tire makers reflected a continuing recovery from the impact of the Covid pandemic on their businesses and markets – tempered by developments in Russia.

Europe’s next largest player Nokian fell one position to no. 20, reflecting the onset of challenges linked to the Finnish group’s exit from the Russian market to which it was heavily exposed.

Interestingly, despite all the turmoil around its exit from Russia, Nokian generated the most sales per employee in 2022: at $377,906 the Finnish group stayed just ahead of India’s BKT at $360,017 and Toyo Tire of Japan at $358,124.

Milan-based maker of commercial and off-road tires Prometeon’s ranking at no 26 is based on its 2021 data: the 2017 spin-off from Pirelli did not provide revenue details for last year.

Elsewhere, it is worth noting that the $1-billion-plus revenue recorded for Trelleborg Wheel Systems, at no 29, now bolster the sales of Yokohama Rubber Co.

This follows the Japanese group’s €2.2-billion acquisition of the off-road tire maker from Swedish group Trelleborg SA in May – a deal that could threaten Pirelli’s long-held position among the ‘big-six’ next year.

Meanwhile, Michelin, Continental and Nokian will face pressure, to varying degrees, on their sales, as a result of exits from Russia and divestment of production activities in the country – all linked to the Kremlin’s invasion of Ukraine on 24 Feb 2022.

Read the full European Tire Report 2023 in the Sept/Oct issue of ERJ print magazine - also posted in the Digital Issues and Focus sections of the ERJ website.