Pirelli UK sales fall as OE tire volumes drop 24%

Burton-on-Trent, UK – Pirelli’s UK tire business reported lower sales and earnings in 2025, as OE volumes fell sharply.

Pirelli UK Tyres Ltd posted turnover of £461 million (€539 million) for the year ended 31 Dec 2025, down 4% from £480 million a year earlier, the tire maker reported 11 Sept.

Operating profit declined 1.9% year-on-year to £21.2 million, while pre-tax profit fell 3.8% to £20.3 million from £21.1 million.

Pirelli linked the sales decline partly to a sharp reduction in OE volumes, which fell 24.2% year-on-year.

The decline was “primarily reflecting lower demand from certain major UK automotive manufacturers,” the tire maker said.

Replacement car tire volumes also dropped 2.4% year-on-year.

Pirelli said the replacement-volume decline was partly mitigated by price increases “in excess of inflation” and a continued shift towards higher rim sizes.

The replacement market also benefited from a positive year-on-year price impact, although these gains were offset by increased labour costs, according to the filing.

The decline in UK OE demand came during a year in which Pirelli temporarily halted production at its Carlisle and Burton-on-Trent operations due to “market conditions”.

In October 2025, Pirelli told ERJ that the six-day shutdowns were intended to “align output with prevailing market conditions.”

Despite the weaker market environment, Pirelli UK said in its latest filing that it invested in its manufacturing operations during the year.

This included “investment in manufacturing facilities and new machinery to reflect Pirelli’s strategy,” as well as increasing tire sizes “in line with market requirements.”

The additions included £6 million in plant, machinery and vehicles and £9.5 million in “assets under construction.”

The company said it expected 2026 to remain challenging, citing “geopolitical and commercial tensions and marked forex volatility”, but said it expected performance in its high-value tires to remain above the market.