Kirov, Russia – The Russian demand for tires and caps registered a decline in 2019, leading to lower production among local manufacturers, according to Kirov-based ROIF Expert marketing agency.
Tires and caps volume sales declined by 3% compared to 2018, although in value terms, sales rose 6% due to price increases, said an ROIF report published earlier this month.
As a result of low demand, tires and caps production declined by 8% year-on-year by RUB7.7 billion (€112 million), the research agency noted.
Manufacturers in the Volga federal district were impacted more strongly by the decline, with an overall 18% cut in their production output.
Producers in the Northwest and Central federal districts also reported 3% year-on-year lower output.
By contrast, the Siberian federal district registered a 2% increase in production.
The lower production trends also impacted exports as the country reported a 9% decline in the export of tires and caps in 2019.
Exports fell by 2 million units, $41 million (€38 million) in value terms, partially offset by a 4% increase in export prices.
Typically made with an abrasion-resistant, higher-grip rubber compound, tread cap works with the tread base and tread design to provide traction and mileage.