Fourth quarter decline leaves EU replacement tire market in negative territory

Brussels - The European replacement tire market finished 2022 in negative territory, due particularly to year-on-year sales declines in the passenger car and farm tire segments.

Overall, the replacement consumer tire segment fell 2% in 2022, including a 13% decline in the fourth quarter, according to the European Tyre and Rubber Manufacturers’ Association (ETRMA).

While both summer and winter tire volumes fell 6% year-on-year, all-season tires posted a 6% increase over 2021, despite a 10% decline in the final quarter, ETRMA noted in its latest market report.

The truck & bus replacement tire segment posted an overall 1% increase for the year, but slowed down significantly during the fourth quarter, with an 8% year-on-year drop.

A similar pattern was followed by the two-wheeler replacement tire segment where full-year sales remained stable, despite an 11% decline in the last quarter.

The replacement farm tire segment registered by far the sharpest annual decline, down 22% on 2021, continued the report issued 19 Jan.

During the fourth quarter of the year, tire sales to the agricultural industry posted a drop of 36%, compared to the final three months of 2021.

However, the year-end results for the original equipment (OE) segment were “more positive”, according to ETRMA.

OE passenger car tire unit sales grew 3.4% during 2022, although volumes remained 26% below the pre-Covid level of 2019.

The OE truck & bus segment posted growth of 4.7% over 2021, with sales volumes increasing 6.8% compared to 2019.

“Last year was characterised by two contrasting half-year results for European tire manufacturers,” said ETRMA's new secretary general Adam McCarthy.

The industry saw a positive trend in the first six months for replacement consumer tires with 7.4% growth compared to 2021, while truck & bus tires reported a 10.3% increase.

However, McCarthy said, it turned into “a challenging second half of the year.”

“There is no doubt the war in Ukraine, and the subsequent increase in energy prices and higher cost of living, have impacted the industry’s replacement tire sales in 2022,” he concluded.

ETRMA members’ tire sales in Europe: 2022

*Passenger car, SUVs and light commercial vehicles. 

Source: Europool / ETRMA