Milan, Italy – Pirelli & C. SpA estimates the overall car tire market to decline 19% in the year 2020, as a result of the Covid-19 global pandemic.
“In light of the elements available today and based on a prudent scenario, Pirelli now expects a fall of 2020 GDP at the global level of about negative 2.8%,” the company said in a statement 3 April.
The figure compares against an earlier forecast of 2.7% growth presented in the company’s Industrial Plan 19 Feb.
In this new scenario, Pirelli said it expected the passenger car market to fall 19% but did not give a total figure.
This will include a 21% decline in the OE segment, which was previously estimated to register a 2.4% fall. Pirelli linked the decrease to the global fall in the production of new vehicles.
In addition, Pirelli said it expected the replacement market to decline 18% due in part to restrictions in movement across different countries.
As for demand for its products, Pirelli anticipates the premium segment – tires with rim size of 18’’ and bigger – to decline 14%, down from prior indication of 6% growth.
Demand for standard tires will take a more significant hit as Pirelli expects the segment sales to fall 20% as opposed to the original indication of 2% decline back in February.
In terms of volumes, Pirelli forecasts a decline of 18-20%, significantly lower than earlier predictions of 0-1% growth.
In the high value segment, Pirelli has now revised down volume sales from a 6% growth to a 14% decline. Standard tire volumes are set to plunge 26%, down from prior indication of 6% decline.