MILAN—Pirelli & C. S.p.A. estimates demand for passenger tires will decline 19 percent during 2020 versus 2019, as a result of the COVID-19 pandemic.
"In light of the elements available today, and based on a prudent scenario, Pirelli now expects a fall of 2020 GDP at the global level of about negative 2.8 percent," the company said in a revised earnings statement published April 3.
The figure compares against an earlier forecast of 2.7 percent growth presented in the company's Industrial Plan released in mid-February.
Pirelli said its forecast is based on an 18 percent drop in replacement market sales and a 21 percent decline in the OE segment, although the company did not publish sales/shipment figures.
Pirelli attributed the replacement market drop in part on restrictions in movement across different countries.
Within this category, Pirelli said it anticipates the premium segment—tires with rim size of 18 inches and bigger—to decline 14 percent, down from prior indication of 6 percent growth. Demand for standard tires will take a more significant hit as Pirelli expects the segment sales to fall 20 percent as opposed to the original indication of 2 percent decline back in February.