Michelin: Passenger car tire market steady at Q3 stage

Clermont-Ferrand, France – Worldwide, the ‘sell-in’ market for passenger car and light truck tires registered a “stable” year-on-year performance over the first nine months of 2026, Michelin has reported.

The sales trend for light vehicle tires reflected a 1% year-on-year decrease in OE sales compensated for by an increase of a similar level in replacement demand.

The slight reversal in the global OE segment was “mainly driven by the persistent contraction of Chinese domestic demand,” the French group said 20 Oct.

In Europe, meanwhile, demand was running at prior-year levels as of the end of September, with car makers benefitting from "an acceleration in demand for EVs as well as from public support schemes implemented in certain countries.”

However, it noted that “competitive pressure exerted by vehicle imports from Asia remains strong and continues to constrain local production.”

In North and Central America, the market shows a moderate decline (-1%), which intensified slightly in the third quarter.

Passenger car and light truck tire market (Q1-3/26 vs Q1-3/25)

Includes Turkey and central Asia

“Demand remains constrained by affordability: while vehicle prices have risen as a result of customs tariffs,” said Michelin, which also noted the impact of higher interest rates and petrol prices on consumers.

In China, the market came in 7% lower year-on-year over the first three quarters.

The reversal, said Michelin, reflected an inventory correction initiated by automakers during 2026 and a sharp decline in domestic demand –  linked to the loss of incentives on new vehicle purchases.

“On the other hand, vehicle exports to other regions of the world are reaching record levels, driven in particular by hybrid and electric models,” said Michelin.

Replacement market

Global replacement tire demand grew by 1% compared with the first nine months of 2025, with growth in some regions, notably China, offsetting decline elsewhere, particularly North America.

In Europe, the sell-in market came in 1% down at the end of September, including a 3% dip in the third quarter due largely to a sharp slowdown in low-cost tire imports from Asia – linked to EU antidumping measures against tires produced in China.

In North and Central America, the sell-in market declined 3% year-on-year over the first nine months, Michelin linking that to a drop in imports as the market adapted to the introduction of extra customs tariffs. 

Sell-out tire demand remained “resilient”, said the French group, noting that mid-range brands had declined, to the benefit of the premium and low-price segments. 

In China, it reported, “after a very dynamic first half, an expected normalisation of demand materialised in the third quarter, with a stable market over the period. On a cumulative basis at the end of September, the market shows growth of 6%.”

Factors here, said Michelin included a “replacement effect induced by the large number of new vehicles delivered in recent years,” as well as a normalisation of “slightly high” low-cost-tire inventories since the start of the third quarter.