The UK light commercial vehicle tyre market had a relatively dynamic year in 2020, with value and volume changes in certain sub-segments driven by an increase in higher rim diameter tyre sizes, as well as increased demand for all-season – and even winter – performance. According to GfK panelmarket data, which tracks points of sale, comparing the calendar year 2020 to 2019, these growth subsegments supported a 2020 light commercial vehicle tyre market value change across all rim sizes of 0 per cent, while volume was down only -2 per cent. While LCV operators were not entirely immune to the effects of the Covid-19 pandemic and its attendant lockdowns, these figures show how the essential services supported by van operators, such as last mile delivery resulting from booming e-commerce, allowed LCV tyres to achieve results within touching distance of pre-pandemic norms.
The car tyres with the largest dimensions represented the segment least negatively affected by the pandemic and its lockdowns in Europe. While UHP tyre demand varied through the lockdowns of 2020 – as you might expect within a segment quickly trending towards 30 per cent of the entire European market – the negative trend was kept relatively under control. This was increasingly the case as you look further up the size range. Tyres & Accessories asked market analyst GfK to examine full-year panelmarket data, which tracks points of sale around the UK to indicate aftermarket tyre trends, for the top 19” and above car tyre segment in calendar year 2020 versus 2019. The infographic on this page shows its characteristics, as well as the relatively mild effects of the last year on retail sales of the highest performance tyres.
For the last few years Sports Utility Vehicle (SUV) take-up has continued apace. Indeed, according to the latest UK vehicle registrations figures, cars that can be described as SUVs now occupy a significant portion of new vehicle market share. Indeed, the Nissan Qashqai crossover was the third most popular purchase in February 2021, according to the Society for Motor Manufacturers and Traders (SMMT). And the Volvo XC40 as well as the Volkswagen T-Roc and Tiguan also figure in the top 10. Of course, all these vehicles need tyres so there is every chance that the recent trend towards SUV tyre replacement sales is also going to continue over the next few years. But what about last year? With these trends in mind, the month’s SUV tyre feature takes a closer look the best products on the market beginning with a detailed look at the latest market data produced in association with GfK.
Common sense seems to dictate that when you tell the majority of the population to stay home, vehicle utilisation – and therefore tyre consumption – should be down across the board. And in a blunt sense the latest full-year panelmarket data from GfK, which tracks points of sale around the UK to indicate aftermarket tyre trends, does show that this happened. However, the latest infographic from the automotive market data analyst also reveals a few more subtle patterns to consumer behaviour in the difficult 12 months of 2020, compared with the previous period. This article is available in Tyres & Accessories’ February issue.
Following what was generally regarded as an insightful presentation on the impact of coronavirus on global, European and UK tyre markets, the panel for our “New Tyres in Corona-World” Virtual Tyre Industry Conference 2020 session (James Ward, senior insight manager, GfK; Andrea Manenti, VP north region, Bridgestone; and Pravesh Amtha, Sales General Manager Consumer UK&I, Goodyear) moved into a discussion relating to how manufacturers are working on creatively supporting the tyre trade in the face of the second lockdown and ongoing pandemic- and economy-related complications.
While van manufacturers have been both developing their electric portfolios and sustaining a double-digit sales contraction in a pandemic affected market, the picture for van tyre suppliers is certainly not as hostile. As we will see in this feature, the requirements of e-commerce and electric vehicles are providing new impetus to van tyre suppliers in the medium term. But 2020 UK figures generated by market data analyst GfK’s Point of Sales Tracking show that the segment is faring better than many with the travails of this year. At the same time, several trends are coalescing to improve the fortunes of van tyre suppliers.
5 November saw the inaugural virtual Tyre Industry Conference, with Tyres & Accessories bringing the traditional annual conference into the virtual arena due to Covid-19 restrictions. Produced in association with the NTDA and supported by Cam Systems, our expert panel was comprised of James Ward, senior insight manager, GfK; Andrea Manenti, VP north region, Bridgestone; and Pravesh Amtha, sales general manager Consumer UK&I, Goodyear. The wide-ranging 45-minute conversation covered a lot of bases, but the first session, which was designed to focus on the new tyre market’s recent trends and statistics began with a presentation from James Ward.
The latest data might show that 4×4 replacement tyre sales are down 6 per cent, however Tyres & Accessories asked market analysts GfK how past trends compare with current realities and found: 4×4 tyres have been hit by the effects of the Covid-19 pandemic, but far less than most other segments. At the same time, the all-season 4×4 tyre sub-segment witnessed some examples of positive growth.
4×4 retail tyre sales have long been a growth area and the UK market constitutes one of the leading lights in Europe. More recent growth has been driven by similarly strong SUV vehicle sales as well as consumer switches towards all-season products. At the same time, more practical and off-road-orientated vehicles have also been supporting 4×4 tyre sales.
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The Covid-19 pandemic and lockdown has made 2020 an annus horribilis for the UK car tyre market, with a near quarter-long lockdown slashing miles driven, original equipment sales due to prolonged factory closures, and reducing sales opportunities further with the government’s MOT exemption. However, tyre businesses have begun ramping up again in response to the reopening of business sectors, people returning to work, and the possibility that private car usage could become increasingly popular as commuters avoid public transport – though the trend for working from home could create more than a headwind for any growth in miles driven. Perhaps the greatest driver of UK car tyre sales growth in 2020 could be the projected spike in MOTs in the autumn, as the period of exemption expires for many pandemic affected motorists. Halfords Autocentres estimates that there could be an 85 per cent jump in demand for MOTs in October – click here for Tyrepress’s own analysis of the MOT situation. Why is this important in a feature about all-season and winter tyres? As we are about to see, the all-season tyre segment continued its impressive growth over April 2019 – March 2020.
On the morning of 10 June 2020, well-respected market analysts GfK hosted an webinar for north of 170 European tyre executives. Overall, the “Global Car Tyre Market Overview” presentation concluded that, while there are many variables and unknowns, retail tyre demand in 2020 market is likely to be down 20-30 per cent compared with 2019.
The latest GfK data based on its tyre retail sell-out sources – what it refers to as its panelmarket – shows that UHP tyre sizes, especially above 17″, continued to represent a growing market in 2019. The analyst compared UHP tyres, here defined as 17” and above, in the period from January 2018 to December 2018 with January 2019 to December 2019. The first column shows that 17” takes a share of the total tyre market of just over one-fifth (21 per cent). 17” has been a popular size for many years, benefitting from the transition of more compact cars onto higher rim sizes. However, growth in 17” dimensions has now plateaued, with this figure representing no change on the previous year’s data.