ETRMA data confirms steep drop in replacement tyre sales
The second quarter of 2020 provided the worst quarterly sales results in recorded memory, the European Tyre and Rubber Manufacturers’ Association (ETRMA) states. Publishing its members’ replacement tyre sales for the Covid-19 pandemic stricken quarter, ETRMA secretary general Fazilet Cinaralp said: “The tyre sector’s full recovery is still far away. For the moment, we can only hope for the market to stabilise in the second half of the year. Our outlook for 2020 remains bleak with a double-digit drop in sales expected across all segments.”
The first quarter of 2020, during which the pandemic began to cause lockdowns across Europe, saw a substantial slowdown in sales. The full effect has become more evident in the second quarter. Quarterly light vehicle tyre sales have dropped nearly a third year-on-year to 35 million units (from 51 million in Q2 2019). Two-wheel and heavy commercial tyre sales are down 26 and 23 per cent respectively. Meanwhile the agricultural sector has withstood the effects of the pandemic most effectively, down only 4 per cent in the quarter. This reflects views communicated to Tyres & Accessories by leading tyre brands in the segment – see the July issue for more details. Over the course of the year to date, replacement sales across all segments registered double-digit drops, again with the exception of agricultural tyres. At 9 per cent down for the year, results in quarter two actually improved the sector’s position.
End of shutdowns support uptick
After having been shut for an average of 33 days due to Covid-19, all tyre manufacturers in Europe slowly resumed their production in May when most European countries eased their lockdowns. As a result, there was a slight upward trend in tyre replacement sales visible towards the end of the quarter, ETRMA continues.
Whether this trend will hold remains to be seen in the coming months. Being a global industry, the recovery of the tyre sector is not just dependent on Europe’s situation but how other parts of the world and global trade routes continue to be impacted by and address the pandemic.
ETRMA concluded that the European tyre industry welcomes all measures that have already been taken at European and national levels to mitigate the impact of the crisis and looks forward to additional schemes to stimulate and support a successful economic recovery.