2019 MARKET OUTLOOK

The market’s performance in the first months of the year show a prolonged weakness in demand in Original Equipment. In particular, in the New Premium segment (tyres with rim sizes of ≥18”), the Original Equipment market in 2019 is expected to grow by between +2% and +3%, compared with the previous estimate of ~+5%. For the Replacement market ≥18”, however, double-digit growth (+10%) is confirmed. Given these dynamics, the New Premium market is expected to post total growth of ~+7% (previous estimated +8%).


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


The ≥18” tyre market segment, which is a significant part of the High Value market for motor vehicles, is characterized by a higher growth than that of the standard segment, considering:

  • the evolution of the circulating car market mix;

  • the growing number of car models which is accompanied by the diversification of the characteristics of the tyres approved for each individual car model;

  • the growing demand for Specialties and Super Specialties tyres;

  • the increasing market share of SUVs;

  • the evolution of automobile design towards higher tyre rim diameters.

2016-2020 KEY DRIVERS OF GLOBAL HIGH VALUE TYRE MARKET GROWTH



Source: Company Presentation

Last Revised: 14 May 2019