Truck Tire Market to Boom

Sales of Replacement Tires Dropped in Europe

According to data from the European Tyre and Rubber Manufacturers' Association (abbr. as ETRMA), the overall sales of replacement tires in Europe declined in Q3, 2017. Hereinto, the sales of agricultural tires were 267,000 pieces in Q3, down 25% Y-O-Y.

ETRMA showed that the sales of agricultural tires had shown a downtrend from 2016. The sales of passenger car tires and truck tires all declined in Q3. However, the sales of motorcycle tires were favorable, with an overall sales volume of 1,831,000 pieces and a 2% yearly increase.

In the first nine months of 2017, the overall sales of passenger car tires in the ETRMA member countries were 158,000,000 pieces, down 1% Y-O-Y. The sales of agricultural tires totaled at 1,049,000 pieces, down 9% Y-O-Y. However, the sales of truck tires and motorcycle tires showed an uptrend in the first three quarters. The total sales of truck tires were 7,348,000 pieces, up 2%. And the sales of motorcycle tires totaled at 8,079,000 pieces, up 3% Y-O-Y.

Sales of Truck Tires to Be Favorable in China

With a same uptrend of truck tire sales in Europe, the prospect of truck tire sales in China is also favorable. According to data from China Association of Automobile Manufacturers (abbr. as CAAM), the output of heavy trucks was 102,600 in September, up 9.80% M-O-M and up 91.75% Y-O-Y. The sales of heavy trucks were 101,100 respectively, up 7.95% M-O-M and up 91% Y-O-Y. In the first three quarters, the output of heavy trucks was 861,400, up 76.91% Y-O-Y. The sales were 874,600, up 77.66% Y-O-Y. Both the output and sales of heavy trucks increased notably from last year.

The robust momentum of heavy truck sales will set a foundation for the usage of replacement tires. Generally speaking, the average lifetime of heavy truck tires is about nine months, while that of passenger car tires is as long as three or four years. The great sales increase of heavy trucks will push up the truck parc., boosting the tire sales in the future.

The truck parc. may increase in the future, and the truck tire retailers may feel satisfied. However, the price of truck tires fluctuates frequently. The price of all-steel tires follows the price changes of the feedstock. The price of all-steel tires saw ups and downs in 2017.

Even if the price keeps fluctuating, the sales increase of heavy trucks will be a bullish factor for the sales of truck tires. The truck tire market may be flourishing in 2018.