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April 16, 2020 11:23 AM

Tire demand in Europe plummets in wake of COVID-19 pandemic

European Rubber Journal Report
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    BRUSSELS—Demand for tires throughout Europe fell by double digits in nearly all product categories in the first three months of 2020, reflecting the impact of the COVID-19 pandemic on business, the European Tyre & Rubber Manufacturers' Association reported.

    In its latest quarterly analysis, the ETRMA said member companies' sales across all categories "dropped drastically" as COVID forced strict lockdown measures across Europe.

    The largest sector, replacement consumer (passenger and light truck) tires, was off 12.8 percent for the quarter to 48 million units; shipments were off 26.4 percent in March alone, the ETRMA data show.

    The truck tire aftermarket fared the best among the categories tracked, with shipments falling "just" 5.6 percent to 2.83 million units; the drop in March was 15.1 percent.

    In addition, shipments of agricultural tires fell 12.8 percent in the quarter to 312,000 units and demand for two-wheel tires dropped 21 percent to 3.5 million units.

    The declines clearly were linked to government measures taken to protect the public and workers from COVID, including temporary closures of European tire plants, the ETRMA said.

    As of April 7, the trade group estimated that, in Europe, 89 percent of manufacturing capacity is closed, 84 percent of the workforce is affected and 10 percent of research and development staff is unable to continue their activities.

    The Brussels-based association added that it remains unclear when the European tire industry will be able to resume its production activities and the international supply chain will function properly again.

    Moreover, it noted that national lockdown measures across the EU had impacted vehicle and tire purchases as well as the actual usage of vehicles.

    "Both the suspension of the operational activities and the sharp drop in demand will have a long-lasting impact on the performance of our industry," ETRMA Secretary-General Fazilet Cinaralp said.

    "This is the biggest challenge our industry has ever faced," Cinaralp said. She welcomed measures taken at the European and national levels to mitigate the impact of the crisis.

    Meanwhile, the ETRMA is collaborating with European Union institutions and national governments to develop schemes to facilitate a restart of activities once the immediate health crisis is over.

    "We look forward to continuing our dialogue with decision-makers on how we can restart our activities in the near future," she said, noting that the tire industry will continue to contribute to the fight against the virus.

    "The European tire industry remains ready to provide any assistance it can. A number of ETRMA members are producing surgical masks and ventilators in different member states and continues to mobilize on all fronts to play an active role in the global battle."

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