Our View: Real show in global tire rankings starts at No. 5

When looking at rankings, it's easy to concentrate on who comes out on top. Everyone wants to see who gets bragging rights as the biggest and the best.

But with the Rubber News' ranking of the Top 75 global tire producers, that's not really the case. The real battle is going on in the second tier of companies, those battling for the Nos. 5-8 slots.

You see, for the time being at least, the top four tire firms have been rock stable for a while. Michelin and Bridgestone have separated themselves as the top 2 companies in our annual Global Tire Report. Goodyear, despite a drop of about $600 million in 2023 tire sales, still has a firm grasp on No. 3. And Continental remains secure at No. 4.

From there, though, things get interesting. The next four companies in our ranking are separated by less than a billion dollars, and each can make a case for how they will emerge as the overall No. 5 player in the industry.

For this year, Pirelli edged ahead of Sumitomo, with the Italian firm coming in at $7.19 billion, about $25 million ahead of its Japanese competitor.

Pirelli's rise was boosted by a strong 2023 for its North American business, where it saw revenues jump an estimated $265 million to nearly $1.86 billion. It's done that by designing products most desired by consumers—tires with low rolling resistance, excellent treadwear and top performance in all weather conditions.

Sumitomo, while seeing sales flat globally, also made gains in the vital North American market, where it saw sales grow nearly 9 percent last year to an estimated $1.78 billion. The firm expects continued growth on the continent through 2028, driven by a $130 million expansion that it said will nearly double capacity at its factory in Tonawanda, N.Y.

Hankook held steady at No. 7, with global tires sales of $6.65 billion in 2023. The South Korean-based firm has gone on record that it aims to be a top 5 player in tires. Hankook Tire America President Rob Williams said the key to making that move, like Pirelli, is continuing to develop innovative products and being responsive to the needs of the market. Hankook also is doubling down on North America, with a $1.6 billion investment in its Clarksville, Tenn., factory that will start producing tires by next summer.

And don't forget No. 8 Yokohama. Its 2023 tire revenue rose 8.5 percent to $6.23 billion. The Japanese firm has made the most noise in the M&A market. It plans to buy Goodyear's OTR business for around $905 million, a year after it closed on its acquisition of Trelleborg Wheels Systems for $2.3 billion, a move that doubled the size of its off-highway tire business.

So stay tuned. The show is definitely not at the top. Just a few rungs down the ladder.