AUTOMOTIVE TIRES MARKET

KEY FINDINGS

• In 2020, the average drop in sales for global tire vendors was ~15-16%
• Tire companies are expecting the sales to bounce back to by 8-10% in 2021. The raw materials cost is expected to increase in 2021 as the prices are already more than that of pre-COVID numbers.
• US dominated by SUVs and pick-up trucks; the average size of tires is much bigger than any other region
• Europe region arguably has a lower size tires compared to US owing to increased penetration of hatchback cars. However, the section width of tires is much higher than compared to China and Japan.
• Japanese market dominated by MPVs has dropped the average size of tires to 185mm. The SUV numbers among the top sellers has been comparatively less which has meant the section width tires is not more than 235mm in the region.
• China which has higher Sedan population had tires of lower rim size mostly 14” and 15”.
• India is dominated by hatchbacks and owing to higher PARC of Maruti Suzuki vehicles the region is dominated by lower section width tires mostly 145-155mm

INTRODUCTION

Automotive tires market is an integral part of the auto industry. There are more than 35 tire manufacturers in different parts of the world.

To know more about Global Electric Vehicle Tire Market, read our report

US AUTOMOTIVE TIRES MARKET

In US, due to high popularity of SUVs, crossovers and pickups which comprised ~71% of new car sales in 2019 have 17-, 18- or 19-inch tires as a standard fitment. 225 and 235 section tires with 60/65 aspect ratio are most common in the US automotive tires market.

Except for the Ford Escape every Ford car in comes with more than 230 section width tires. The Ford SUVs have an average size of 255 mm. One of the variants of pick-up truck Ford F150 comes with tire of as high as 315 mm section width; it is the highest for any car in the region. Every model of Ford comes with the radial tire as standard option. Ford F150 has the greatest number of variants equipped with light truck tire.

Toyota Corolla features the smallest section width tire in the region 195 mm, along with Hyundai Elantra these are the only 2 models with sub 200 section width tires.

The Chevrolet brand has greater number of its variants with section width more than 230 mm. The Chevrolet Malibu has the lowest size among the Chevy models having 205 mm for its entry model. Except for few models of pick-up truck Chevrolet Silverado passenger tires are used by default.

Light truck tires are used for few variants of Chevy Silverado. Toyota in its pick-up truck Tacoma and SUV Highlander the tires are 230+ section width ones. The sedans and the Rav4 have tires with width fewer than 230 mm.

The powerful SUVs of Jeep have higher section width and average being 255 mm. The Jeep Grand Cherokee has a variant with tire of section width as high as 295 mm.

Honda has all its cars in medium range section width around 215-225 mm. None of the cars has tires width beyond 235 mm. Honda Civic has variants with tires of highway terrain and few for normal driving conditions.

Subaru and Mazda all variants have 225 mm section width. 

EUROPE AUTOMOTIVE TIRES MARKET

In Europe, hatchbacks are popular and comprise ~28% of new car sales every year. Many base variants of such popular hatchbacks (VW Polo, VW Golf, Toyota Yaris, Fiat 500) have 14- and 15-inch tires going up to 17- and 18-inch tires on higher trims/ sports variants.

Unlike US where 225-mm & 235 mm section tires are most common, in Europe 205- and 215-mm section tires can be found on many vehicles.

CHINA AUTOMTOVE TIRES MARKET

In China, Sedans dominate the top seller segment and hence the average size of tires is 16”. Haval H6 is the only SUV in the top 10 selling cars to feature 19” tire. Overall, the 19” tires among the top sellers is limited to SUVs. However, in the premium segment cars with these 19” tires are quite common.

Volkswagen- the top selling OEM in the country has 3 of its 4 top models Lavida, Bora and Santana fitted with 15” tires. In that, Santana has the smallest tire in the region in terms of rim size along with Wuling Hongguang both have the 14” wheels

Aluminum Alloy is the most common wheel design found. It is found in more than 90% of the top selling models in the country. Few models are fitted with Steel-Aluminum Alloy too.

Tire pressure monitoring system feature is present in almost every model among the top 30 vehicles. Only Wuling’s Hongguang had this as optional feature in few variants and was absent in couple of its variants.

In terms of section width of tire, VW Santana and Wuling Hongguang are the only models with 175mm width, rest all of the models are equipped with higher section width.

235mm width tires are quite common in SUV range such as Haval H6, VW Tiguan and Roewe RX5 and in high end sedans.

Bigger size tires mostly 245mm ones are found in almost every model in the premium segment.

VW premium SUV Tiguan has the tire with highest section width of 255mm in the country.

INDIA AUTOMOTIVE TIRES MARKET

Among the top 10 cars, rim size of 13” is quite common. Alto the top selling model in the country is fitted with 12” wheel the lowest size wheel in the country. It is also fitted with 145mm section width tire.

14” size wheels are most commonly found type in the country, followed by 15” ones. 17” wheels is found in few variants of Innova and XUV300, which also have 215mm section width tires along with Tata Nexon model.

Mahindra Scorpio is the only model among the top sellers to be fitted 235mm section width tire along with 17” wheels.

Steel Wheel was most common type of wheel set among top 10 sellers in the country. Alloy wheels are present as optional among these cars.

JAPAN AUTOMOTIVE TIRES MARKET

Average tire section width in the region is 185 mm . The region is dominated by MPVs. Hence, the size of the tires in the segment was 165mm & 175mm tires. 165mm tires is the smallest size of tires available in the region fitted in vehicles Toyota Roomy and Tank. 235mm section width tires is the largest size of tires found in Toyota RAV4.

15” and 16” wheels are most commonly found tires in the region. The 19” wheels are very limited among top sellers as only 4 models were equipped with that size. Toyota’s RAV4, C-HR, Mazda CX-5 and Nissan X-Trail.

In the Sedan and SUV segment Chrome metallic wheels and Aluminum alloy wheels are found mostly outside top 10 top sellers. Aluminum wheel is standard option in most of the vehicles in the region. Steel Wheel is found in only 3 out of top 10 vehicles in the country.

AUTOMOTIVE TIRES MARKET SIZE AND FORECAST

Global Automotive tires market size is estimated at ~$142 Billion in cumulative revenue in 2020.

Bridgestone the global tire manufacturing leader witnessed a 15% decrease in its annual revenue owing to shutdown of plants and poor demand in the 1^st and 2^nd Quarter 2020. However, the sales picked up in 3^rd quarter, but the second wave in Europe and other regions caused the sales to not meet the estimation in the 4^th quarter. But the demand for truck and bus tires remained strong in the period and were the segments leading the recovery. Company has also stressed on simplifying & improving the efficiency of production

Michelin witnessed a 15% drop in annual sales in 2020. To counter this company has moved few of its plants closer to the high-volume customers, by increasing the production in plants like Indonesia and Mexico.

Goodyear tires expects raw material costs to increase from $125M to $175M as natural rubber and butadiene prices have already crossed pre-COVID levels. Carbon Black prices is gradually increasing in the global market. China’s consumer replacement volume continued to exceed in the industry approximately >10% growth witnessed in 2020.

RECENT DEVELOPMENTS IN PASSENGER CAR TIRE MARKET 

• Lamborghini selected Bridgestone to be their exclusive tire supplier for a new sports car, the Huracán STO.
• Bridgestone, Mobivia and Black-Star have signed an agreement to create a collection, sorting and retreading unit for passenger car tires, through its iWip subsidiary, Mobivia, alongside Black-Star will develop the Béthune industrial site into an integrated tire recycling ecosystem whose circular economy approach will give tires a second life, therefore reconditioning a tire, 80% of the original material will be saved, including up to 9kg of rubber and steel.
• Continental selects Simulation specialists Ansible Motion’s latest driver-in-the-loop (DiL) simulator and the Delta S3, to aid its engineers in consistently and repeatedly testing tires across an array of virtual terrains, locations, scenarios and seasons. 
• Goodyear launched a new all-season line designated for PSA Groupe with industry’s 3-Peak Mountain Snowflake (3PMSF) designation for winter traction as well as an “A” rating for low rolling resistance under EU tire labelling regulations.
• Bridgestone’s Non-Pneumatic Tire Technology “Air Free Concept” is a technology thateliminates the need for tires to be inflated with air to support the weight, using a unique structure of spokes stretching along the inner sides of tires. With this technology, tires need less maintenance and have no worry of punctures
• Goodyear has developed a non-pneumatic tire (NPT) and wheel assembly to support urban autonomous vehicle transportation with the Jacksonville Transportation Authority (JTA).

• Bridgestone has also developed a new tire strain technology which allows autonomous vehicle users to remotely monitor air pressure, wear and tear, and load in real-time
• MICHELIN’s new Uptis (Unique Puncture-Proof Tire System) is an airless mobility solution for passenger vehicles, which eliminates the dangerous risk of flat tires and blowouts that result from punctures or road hazards
• ContiSeal: It is a technology developed by Continental designed to seal a damaged tire tread. In case of penetration by foreign objects such as nails, there is no need for immediate roadside tire changes, and holes remain sealed even if the puncturing object becomes dislodged.

RECENT DEVELOPMENTS IN COMMERCIAL VEHICLE TIRE MARKET 

• The Falken all-season Euroall Season AS210 claims that with its own type of a tyre technology it is going to be the first tyre with an integrated tire sealant technology which would be capable of immediately sealing punctures. 
• Pirelli announces its first ever high-load index tire, targeting the electric and hybrid car and SUV markets. Its latest tyre feature claims to withstand 6-9% more weight than an extra-load XL tire in the same size. Whereas the HL (high load) marking on the sidewall supports 20% more weight than conventional tires.
• The Recon Grappler by Nitto, has been engineered specifically to improve comfort and limit road noise, featuring an aggressive tread pattern with deep sidewall lugs extending 5-7mm to improve traction in both wet and dry conditions; it also provides the vehicles with a good traction off-road. 
• Stated to provide up to 25% more mileage Michelin has announced the launch of two new pre-mold retreads to expand the manufacturer’s portfolio of tire retread technologies. The retread will provide maximum tread-to-shoulder adhesion in high scrub applications. 
• Ideal for muddy, challenging construction sites and agriculture applications. Titan has introduced the new HK 458, a crossover wheel loader tire suitable for extreme loader applications requiring aggressive traction and high levels of self-cleaning. The E-4/L-4 dual-rated bias tire combines the tread design of a forestry tire, a wheel loader tire and an ATV tire. 
• DPD is joining forces with the electric vehicle tire developer Enso to conduct full road trials of a new commercial EV tire design, specified to reduce air and microplastic pollution.
• In light of the quickly developing territorial take trucking section, The Goodyear Tire and Rubber Company launched three new sizes for the Goodyear Fuel Max RTD (Regional Traction Drive) tire line
• Bridgestone Americas Inc. is developing an airless truck tire for commercial trailers, where ~ 40% of tire failures occur
• Bridgestone also launched M713 Ecopia tire, a California Air Resources Board (CARB) compliant drive tire for tandem-axle applications in long-haul and regional service. The tire also features an IntelliShape sidewall that reduces overall tire weight to minimize rolling resistance
• Yokohama Tire launched two new spiral E-3 tires, the non-directional RT31 and the directional RT32.
• Kumho, a Korean tire maker, launched the world's first 20-inch commercial vehicle tire in 45 profile, and is providing it to Hyundai for Original Equipment fit to the Solati bus. The variant of the Kumho ProTran KC53 was launched in 245/45R20C 115/113R configuration
• Carbon black supplier, Cabot Corp. has developed an engineered elastomer composite which it claims can extend the life of off-highway vehicles significantly. The pre-mixed composite solutions of elastomers require fewer mixing stages, lower mixing temperatures and shorter mixing cycles than conventional products

AUTOMOTIVE TIRES MARKET NEW ACQUISITION

Big Brand Tire & Repair , a prominent independent tyre and automobile service provider, announced that it has acquired 11 service sites from MPG Tire and Auto Service in Tucson, Arizona . The transaction's financial specifics were not disclosed.

MPG is a Tucson-based tyre and automobile service company that caters to the demands of its customers and their vehicles. Big Brand will integrate its proprietary technology infrastructure and systems across all of the acquired locations, allowing MPG to provide superior customer service at a great value in a professional and friendly environment.

Following the acquisition, Big Brand will have over 170 high-quality service centres spread across the country in strong and expanding regions. Big Brand, as one of the country's largest tyre and service companies, will continue to follow its guiding values of improving customer and employee experiences while giving back to the communities it serves as it expands swiftly into new regions.

Big Brand Tire & Service is a renowned independent tyre and automotive service provider based in Southern California. Big Brand has a solid track record of providing excellent customer service. Big Brand's passionate and dedicated team members use innovative digital technologies to give outstanding customer care in a professional and friendly environment at a great value.

The purchases of T.O. Haas Tire & Auto, Bruce's Tire & Auto Service, and Delta World Tire were made public by Sun Auto Tire & Service, Inc. With the acquisition of these companies, Sun Auto Tire & Service now has more than 350 stores serving Nebraska, Iowa, Kansas, northern and central California, Missouri, southern Illinois, western Kentucky, northern Arkansas, Louisiana, and Mississippi.

Nine new states have now been added to the portfolio as a result of these purchases. When contacting well-known regional independent companies, businesses assess whether a potential acquisition would strategically position them to expand their portfolio as a whole.

According to the CEO of Sun Auto Tire & Service, these four tire-related businesses perfectly complement the fast regional growth. "The passion is to create outstanding customer service experiences across all locations, and these trusted partnerships will allow to nurture existing relationships and create new ones in order to be the nation's leading provider of quality aftermarket automotive repair and tyres," the companies state.

According to the company, Sun Auto Tire & Service acquired 11 automotive service brands, creating a coast-to-coast automotive service organisation by expanding into 12 new states and adding a total of 180 locations to its portfolio. The business bought Plaza Tire & Service, Martin Tire Co., and Hogan & Sons in the second half of the year.

In September, Leonard Green & Partners acquired a majority stake in the business from Greenbriar Equity.

RECENT LAUNCH IN THE AUTOMOTIVE TIRES MARKET

The all-new Vezda Touring A/S KR205 is launched from Kenda USA. Kenda's Grand Touring All-Season tyre, the KR205, is designed for coupes, sedans, and luxury touring automobiles.

The Vezda Touring A/S blends the comfort and ride that discriminating drivers expect from a touring tyre with the precise handling that they want.The tyre, designed for a variety of American all-season weather conditions, is lighter and quieter while yet offering excellent wet braking and year-round grip, even light snow.

The KR205's asymmetric tread design includes Kenda's own developed pitch sequencing for reduced noise and four hydroplaning-prevention grooves.The KR205's asymmetric tread design includes Kenda's own developed pitch sequencing for reduced noise and four hydroplaning-prevention grooves.

RECENT PARTNERSHIP IN AUTOMOTIVE TIRES MARKET

In Automotive Tires Market, Kumho Tires have made a long term extension of partnership with Tottenham Hotspur. Kumho tires will have a presence on the in - stadium LED advertising system. 

K&M Tire, Inc. has acquired Rochester, New York-based Midtown Tire. K&M Tire will begin operating from the warehouse.

K&M Tire has 32 distribution locations around the United States, employs over 800 employees, and sells over 50 different tire brands for passenger, light vehicle, commercial, farm, and other applications.

The company hasn't introduced new brands to fill in the gaps because it currently has agreements with 54 tire brands. K&M Tire is more likely to supplement with tires from another existing brand when one brand is low on product.

The company is becoming increasingly interested in expanding its distribution footprint in New York. Midtown Tire's personnel appear to fit the company's culture and ideals.

Following two years of restrictions due to the corona pandemic, the international tire and wheel industry will gather in Cologne for The Tire Cologne. Around 300 businesses and brands from 35 countries are anticipated to exhibit their goods and services.

AUTOMOTIVE TIRES MARKET SUPPLIERS` EARNINGS

• The automotive tire suppliers had a PAT margin of ~8% in 2020.
• With its major operating sectors in India and Europe, Apollo for the first time in its two decades experienced a major quarterly loss of ₹ 135 crore (Euro 16.1 million).   
• MRF experiences an overall decrease of 12% in total tyre production. The values evaluated as of FY-2021, 31st March, 2021 suggests that the   total income stood ` 16129 crores as against ` 16322 crores in the previous year. The profit before tax stood at ` 1700 crores for the year as against ` 1399 crores for the previous financial year. 
• With the recovery of the global economy Pirelli marked growth in its sales for the Standard segment (Pirelli volumes for Car ≤17" at +11.7% compared to +10.1% for the market). Its net sales amounted to € 1.24 Billion, which shows a growth of +18.4% as compared to the first quarter of 2020, or +24.5% excluding the combined impact of the exchange rate effect and the adoption of hyperinflation accounting in Argentina (totalling -6.1%).
• Continental tires performed well at the beginning of the year, particularly in China and North America. The ContiTech business profited after a recovery in global vehicle production, in the first quarter, especially in China, and from stable industrial business. It evaluated its consolidated sales of the first three months of the year amounted to €10.3 Billion (Q1 2020: €9.9 billion, +3.5 percent). The Adjusted EBIT increased year-on-year to €834 million (Q1 2020: €433 million, +92.5 percent), resulting in an adjusted EBIT margin of 8.1 percent (Q1 2020: 4.4 percent).  €4.2 billion (Q1 2020: €4.0 billion) and an adjusted EBIT margin of 14.5 percent (Q1 2020: 9.6 percent). 
• Sumitomo Rubber Industries accounts for 12% growth in its sales costing ¥213,688 million as compared to ¥190,794 in March 2020, the business profit accounted for 16,202 million yen with a growth of 468.8%.
• Michelin reported annual Revenue of $24.6 Billion in 2020 a drop of 15% Y-o-Y. Due to faster recovery in demand of products in Q3 & Q4 the inventories hit a new low worth around $ 482M. Overall in Passenger Vehicle segment the sales dropped by ~13% and in Commercial Vehicle/Trucks segment the sales saw a dip of 7%
• Bridgestone reported annual Revenue of $27.9 Billion in 2020 and 81% decline in operating profit. Sales in Japan saw a drop of 17%, highest for any region, whereas other regions saw an average drop of 15% in sales.
• Yokohama reported annual sales of $5.3 Billion in 2020, a 12% drop Y-o-Y. For 2021, company is estimating $ 5.78B sales globally with a PAT of 8.1%
• Goodyear America's revenue dropped ~17% to $12.3 Billion in 2020. OE business in Europe & America regions outperformed companies’ estimation in Q3 & Q4-2020. OTR (Off The Road) Tires’ demand remained low in 2020. Operating Margin for the year was -0.1%
• In February 2021, Goodyear Tire acquired Cooper Tire in a $2.8B deal; it is expected to double their presence in China in the light truck & SUV segment.
• Apollo reported $ 2.3B sales for the year ended in March 2021 which was up by 6% Y-o-Y.

AUTOMOTIVE TIRES MARKET COMPANY PROFILES

• Goodyear 
• Hankook 
• Bridgestone 
• Yokohama 
• Kumho
• Michelin
• Continental Tires
• Pirelli
• Dunlop
• Sumitomo Rubber Industries
• MRF Tires

AUTOMOTIVE TIRES MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

• Automotive Tires Market Size and Forecast, by geography($M)
• Opportunities and risks in Global Automotive Tires Market
• Important technology trends and regulatory changes
• 5 key predictions for next 5 years in Global Automotive Tires Market
• Competitive landscape and automotive tires market share of leading vendors

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