Bridgestone Aims To Gain Market Shares In Brazil
The Japanese tyre manufacturer Bridgestone expects the Brazilian automobile industry to have a slight decrease in units due to the fact that tax incentives for end-consumers expire this year. The automobile industry does not agree with this fact. As far as the truck tyre segment is concerned, Bridgestone will increase its market share significantly.
Its main competitor in Brazil is Michelin with a share of about 30%. The Japanese company is increasing its production capacity from 2,500 daily to 4,500 daily and expects that about 60% of the additional capacity to be sold in Brazil. The rest will be shipped to the US.
It is necessary, according to high-ranking Bridgestone managers, who gave their opinion to analysts, to increase prices in the replacement market by 8% and in the money losing OE business by 10%. If it is not possible to raise prices in OE, Bridgestone is prepared to walk away from this business.As far as passenger car tyres are concerned, Continental and Michelin are strong competitors with both manufacturers selling through car dealers.
Continental is selling, more or less, only passenger car tyres, but Michelin is aiming to win more of the market share in this segment and, not forgetting the strong market player, in fact, the market leader, Pirelli. The Italian group is expected to start shortly a new campaign with its alliance-partner Cooper..