Clermont-Ferrand, France – Tire market data as of 29 Feb shows that the Covid-19 crisis has led to a 9% year-on-year decline in the global passenger car and light truck tire market, Michelin has reported.
Meanwhile, worldwide demand for truck tires was down 16% over the first two months of this year as a result of pandemic, according to the French tire group.
When presenting its 2019 results, Michelin’s guidance issued for 2020 excluded the “systemic effects” of Covid-19, its 18 March release also pointed out.
Now that the global economy is in crisis, these business forecasts are “no longer relevant, without any possibility at present of assessing the potential impact.”
Michelin added that it was taking initiatives to mitigate the negative consequences of the Covid crisis on its operating income and cash flow.
The group went on to state that it had sources of financing in place to address uncertainty surrounding the global health crisis.
Michelin will update its annual tire market forecast when it releases its first-quarter revenue figures.