October – Warmer weather chokes winter tyre sales; OE truck market weakness continues
Mild weather is responsible for far fewer winter tyres being sold in the European market in October, reports Michelin. Statistics released by the tyre maker show a seven per cent year-on-year decline in replacement market passenger car and light truck tyres in Europe (including Russia and Turkey). This drop in sales follows year-on-year growth of one per cent in the third quarter of the 2014 and was not reflected in the original equipment market, which enjoyed a three per cent year-on-year increase in November. Between the start of the year and 31 October, the original equipment and replacement markets are respectively four per cent and two per cent higher year-on-year.
After being down three per cent year-on-year in the July to August quarter, the European replacement truck tyre market was flat in October, and this was good news compared with how the original equipment segment performed. Michelin reports a 13 per cent year-on-year decline in this business, a continuation of weakening demand seen in Europe during the current financial year, particularly in the second and third quarters. Year to date, the European original equipment truck tyre market is eight per cent lower than during the same period of 2013, while the replacement market is up three per cent.