10-year tyre trends show how UHP segment beat the pandemic
The significant decline in revenue for global tyre makers based on headwinds from the Covid-19 pandemic was felt most keenly by companies with the greatest exposure to the consumer vehicle tyre markets. (For the effects of the crisis on manufacturers, see our ranking of the world’s top tyre manufacturers in the Company section of our 75th anniversary special issue.) As many countries reduced private mileage considerably with working from home orders and travel restrictions – not to mention the negative effects of measures such as the UK’s MOT freeze, which removed a significant push factor in the market for much of 2020 – car tyre sales last year dropped considerably, though again there were big differences even within the EU27 and UK. Within car tyre segments there were significant differences in the depth of the contraction too. Broadly speaking, the higher value the segment, the better it tended to fare. Pirelli’s financial reporting for 2020, and the subsequent first-quarter growth in 2021, provide a good illustration of how higher performance segments provided increased resilience in these difficult times.