The first nine months of 2019 were marked at the global level by the weakness of the car market, which also continued into the third quarter beyond expectations: car production in fact saw a decline of 5.9% in the first nine months of 2019, with a fall of 3.2% in the third quarter compared with a forecast stabilization.
The slowdown of the car market impacted Tyre demand, with a decline of 6.3% in Original Equipment in 9M 2019 (-3.9% in 3Q). This dynamic had a negative effect on prices as many operators diverted production to the Replacement channel that had been originally planned for Original Equipment in order to ensure an adequate level of factory saturation and contain inventory. Price reduction mainly regarded the Standard segment and High Value products of lower technological content.
O.E. + REPL. ≥18” CAR TYRE MARKET 2019
Source: Company elaborations based on third party data relative to car market and on data provided by local associations of tyre producers
2016-2020 KEY DRIVERS OF GLOBAL HIGH VALUE TYRE MARKET GROWTH
Source: Company Presentation