European environmental regulations to drive growth of electric vehicles market
Milan, Italy – Pirelli foresees strong growth potential within the electric vehicle (EV) tire market, as transition to new-mobility continues across Europe and elsewhere.
The Italian tire maker expects the EV replacement segment will start to a "give a positive, but limited contribution" to group earnings in 2023.
“We expect around 700,000 to 800,000 pieces to be sold in the replacement EV [tire market] in 2023,” general manager operations Andrea Casaluci said during a recent Pirelli conference call with analysts.
Supporting the positive development of the replacement market this year, will be a "pull-through" from OE sales to the EV market over recent years.
In the meantime, the Milan-based tire maker expects to reach a 5-million-unit mark for OE fitments in the EV tires segment globally, the Pirelli official noted.
Moreover, average selling prices in the EV replacement tire market are 15-percentage points higher than those for internal combustion engine vehicles, said Casaluci.
Pirelli, he continued, also sees opportunities for growth coming from an increase in new car registrations in the EV market, linked to EU regulations.
“We can see an acceleration [due to] regulation in Europe targeting the disappearance of internal combustion engines within 2035,” Casaluci commented.
In particular, he said, these regulatory developments will support an acceleration of EV penetration in premium vehicle segments.