Decline continues for European replacement tire market

Brussels – The European replacement tire market continued its decline in the fourth quarter of 2023, data released by the European Tyre and Rubber Manufacturers’ Association (ETRMA) shows.

Fourth quarter sales declined in all market segments except in the consumer tires segment, which saw marginal improvement, said ETRMA’s quarterly review issued 23 Jan.

The consumer tire segment was particularly helped by winter weather conditions which boosted sales volumes of all-season and winter tires.

Moving in the opposite direction, fourth quarter sales of truck & bus (TBR) segment declined 13% year-on-year, while the farm tire segment registered a 17% dip.

Posting a 24% year-on-year decline, the two-wheeler tire segment saw the sharpest decline in the final three months of 2023.

The latest figures released by ETRMA members confirm “negative trends observed since June 2022,” commented Adam McCarthy, secretary general of the Brussels-based association.

With the continued decline, every tire category recorded by ETRMA showed a negative trend in 2023, compared to prior-year sales levels.

Consumer tire sales fell 8% year-on year, while the TBR segment posted a 17% decrease last year compared to 2022.

The most impacted segments were replacement agricultural tires which saw a 30% drop, while the two-wheeler segments declined by 11% year-on-year. 

There was one bright note within the consumer tire segment, with sales of all-season tires growing 7% year-on-year in 2023.

The full-year declines, said McCarthy, were mainly due to "a drop in the demand driven by the inflationary costs of raw materials, energy and payroll, as well as to the reduction of inventories in distribution channels."

ETRMA: Sales development in the European replacement tire market