Russian Tyre Market Value Shrunk 40% in 2009
In 2009 the Russian market for various types of vehicle tyres (including industrial equipment, tractors and combined harvesters) totalled 33 million units, down a reported 36 per cent. According to a report published in the CRIA published magazine, China Rubber, the 2008 figure was 51.4 million. The fall in value of these tyres was even steeper, down 40 per cent at 95.14 billion rubles (2008: 157.7 billion rubles). According to the research, the main reason for the market decline is directly related to the economic crisis and its knock-on effects on the entire Russian vehicle transport sector.
The recent China Rubber report stated that the future status of the Russian tyre market depends on the domestic auto industry. The Russian government has taken various measures to support car manufacturing plants including increasing import tariffs on foreign cars. And although many Russian tyre manufacturers are implementing major investment projects, such as high quality large-scale production of branded produces and all-steel radial truck tires, it is difficult to forecast how the threatened market will respond without government intervention.