Clermont-Ferrand, France – In a "still highly uncertain environment" amid the Covid-19 pandemic, Michelin has announced that it expects tire markets in all segments to register growth during 2021.
Passenger car/light truck tire markets are anticipated to expand by 6% to 10% over the year, driven by OE inventory build-up and incentives, said Michelin in its first quarter results 26 April.
The OE market will, however, be threatened by the ongoing chips shortage, while the replacement market is set for a rebound worldwide, Michelin added.
Truck tire markets, Michelin said, are expected to grow between 4% and 8%, with “a strong rebound” in the replacement market, driven by freight activities in every region.
The group’s speciality tires, including mining, off-road, two-wheel and aircraft tires, are set for a growth between 8% and 12% this year.
While the mining industry is expected to see a slowdown in coal extraction, off-road tires are set for recovery "boosted by upcycle trend".
The two-wheel segment is also expected to sustain growth, while aircraft tires are anticipated to register “growing demand on very low basis.”
“Even as raw materials and logistics costs continue to rise, the group maintains its objective of reporting a slightly positive net impact of changes in the price mix and raw materials costs,” Michelin said.
Michelin confirmed its guidance, with full-year segment operating income in excess of €2.5 billion at constant exchange rates and structural free cash flow of around €1 billion.