The European tyre market skids on the impact of the Covid-19 to the economy, according to the European Tyre and Rubber Manufacturers’ Association (ETRMA). The repeated lockdowns, mobility restrictions consequently imposed, and the ensuing economic crisis with the closure of some plants, have strongly impacted the tyre sector, not only in terms of sales but also in terms of jobs loss, said Fazilet Cinaralp, Secretary-General of ETRMA.
The Brussels-headquartered association, which represents nearly 4,400 companies in the EU, has published its members’ sales for the year 2020 as well as the last quarter of 2020.
The Original Equipment (OE) segments are most strongly affected, recording a -23% for consumer tyres and -18% for trucks, it said. Also in the replacement market, all the segments have been negatively impacted, with the consumer tyres recording double-digits impact equal to -12%, and more specifically -20% on car winter tyres, and -13% on car summer tyres. Only car all seasons registered a positive trend. On the truck tyres segment the market registered -4%, and on moto tyres a decrease of 9%, while agricultural tyre sales performed steadily compared to last year.
Cinaralp said that the drop in the OE consumer tyres is a direct consequence of the 23.7%2 contraction announced for 2020 by the EU passenger car industry due to Covid-19 pandemic.
ETRMA observes a slow restart of the activity in Q4, with the agricultural tyres sector driving it, followed by the moto & scooter segment, and truck tyres, while the consumer market remains negative. The relatively mild winter during semi/lockdown periods led many drivers to not replace their summer tyres with winter ones. The sector must, then, continue the collaboration with the European Union institutions and national governments to develop schemes to facilitate the recovery, in order to support the economy and the society to exit from this unprecedented crisis, Cinaralp said.