Hanover, Germany – Continental AG expects demand for passenger car tires and light commercial vehicles replacement tires to grow 3% in 2018, according to its annual report.
“The Asian market is expected to contribute around 60% of this increase, with growth of 5%,” said the German tire and technology supplier.
Market expansion, it added, will be primarily driven by China – as in previous years – with further growth in vehicle parc.
Demand is also forecast to grow in India, Indonesia and South Korea.
In Europe, the company expects growth in eastern Europe in particular. The region, it said will likely help sales volumes increase in Europe by 2%.
“Demand in North America is set to recover… after the stagnation in 2017 and increase by 2% in 2018, partly as a result of the continuing rise in mileage,” Conti noted.
In South America, the Hanover-based tire maker said it expects 4% growth in demand.
Furthermore, the company expects increased demand for commercial vehicles weighing more than six tonnes in all regions.
Asia again will play a key role, with Conti expecting “nearly half” the expected increase in demand there.
“As a result of rising transport volumes, we currently expect demand for replacement tires for medium and heavy commercial vehicles to increase by 2%,” Conti added.