Report: Automotive growth pumping up tyre market
The apparent UK tyre market is estimated to have grown by 3 per cent in 2013 at the behest of growing automotive market, according to Tyre Industry, a new market Report from market intelligence provider Key Note. Read a little further and there are suggestions that the 2014 – 2018 period could be some of the UK tyre market’s best years yet.
The report explains that growth in the tyre market has been driven mainly by the resurgence of UK automotive industry, following a significant decline in 2008 and 2009 as the impact of economic recession limited demand for and production of motor vehicles. However since 2010 the automotive industry has seen strong growth, with increasing investment from global carmakers in UK production capacity, alongside a steady improvement in demand across the passenger car and commercial vehicle segments being recorded.
Major issues affecting the UK tyre market have largely concerned safety and environmental issues in recent years. Most notable has been the introduction of tyre labels and tyre pressure monitor systems (TPMSs), both of which were made mandatory on new tyres and all new models of cars and vans, respectively, in November 2012 under European law.
Over the next 5 years, the UK tyre market is expected to remain buoyant, with Key Note forecasting year-on-year growth. This rise in market value will largely be driven by continued growth in automotive production and new vehicle registrations, alongside improving conditions throughout the UK economy. To put this into perspective, there are suggestions in the report that the market could be 50 per cent larger than 2009 values in 2018. Of course there is much water to pass under the bridge between here and there, but this along with strong car registration data and the latest European tyre replacement figures from the ETRMA, suggest there is room for some optimism.