Analysts Predict Strong Winter Tyre Season
Market analysts at Deutsche Bank are predicting that the European market is in the middle of experiencing a strong winter tyre season. After two weak years in Germany, 2009 was strong due to low dealer inventories and good winter conditions, the analysts point out. And if the second run of cold weather and snow affecting the UK and Europe at the moment is anything to go by 2010 is offering the right conditions for increased demand in this sector.
Winter tyres represent a high 20 per cent of the European tyre replacement market (around 50 million units). Of these approximately half are sold in Germany (25 million tyres), with high margins (winter tyres are regular sold at a 20 per cent pricing premium). According to Deutsche Bank Continental is the market leader with an estimated 35 per cent German market, followed by Goodyear and Michelin with an estimated 20 per cent share of the European winter tyre market.
In 2010 the European tyre replacement market (winter and summer) is expected to “rebound and grow by 6 per cent, though on easy comparisons (-5 per cent in 2009 and -4.0 per cent in 2008),” according to Deutsche Bank.