global market review of automotive tyres forecasts to 2017 ... · pdf filetable 11:...

Global market review of automotive tyres – forecasts to 2017

2010 edition

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© 2010 All content copyright Aroq Ltd. All rights reserved.

Global market review of automotive

tyres – forecasts to 2017

2010 edition

April 2010

By Matthew Beecham

Published by

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Page iv Contents


Contents

Single-user licence edition .......................................................................................................... ii

Copyright statement ............................................................................................................... ii Incredible ROI for your budget – single and multi-user licences ............................................. ii just-auto.com membership ..................................................................................................... iii

Contents ...................................................................................................................................... iv

List of figures .............................................................................................................................. vi

List of tables .............................................................................................................................. vii

Preface ........................................................................................................................................ ix

Research methodology ......................................................................................................... ix Report coverage ................................................................................................................... ix The author ............................................................................................................................. x

Chapter 1 Introduction ................................................................................................................ 1

Chapter 2 The market .................................................................................................................. 2

Market trends ......................................................................................................................... 2 Market players ....................................................................................................................... 4

Bridgestone ................................................................................................................... 5 Q&A with Bridgestone ............................................................................................. 5

Continental .................................................................................................................. 10 Q&A with Continental ............................................................................................ 10

Cooper Tire & Rubber .................................................................................................. 14 Q&A with Cooper Tire & Rubber ........................................................................... 15

Goodyear..................................................................................................................... 21 Q&A with Goodyear Dunlop UK ............................................................................ 22

Hankook Tire ............................................................................................................... 27 Kumho Tires ................................................................................................................ 27 Michelin ....................................................................................................................... 27 Pirelli ........................................................................................................................... 28

Toyo Tire & Rubber ..................................................................................................... 28 Sumitomo Rubber Industries ....................................................................................... 28 Yokohama Rubber ....................................................................................................... 29

Emerging markets ................................................................................................................ 32 Brazil ........................................................................................................................... 32

China ................................................................................................................................... 32 Hungary ....................................................................................................................... 34 India ............................................................................................................................ 34 Mexico ......................................................................................................................... 34 Romania ...................................................................................................................... 34 Russia ......................................................................................................................... 35

Page v Contents


Thailand ...................................................................................................................... 35 Turkey ......................................................................................................................... 36 Investments in Europe ................................................................................................. 36 Investments in North America ...................................................................................... 36 Investments in Asia...................................................................................................... 37

Market shares ...................................................................................................................... 37 World ........................................................................................................................... 37 European markets ....................................................................................................... 39 North American markets .............................................................................................. 40 Asian markets .............................................................................................................. 42

Market size .......................................................................................................................... 44 Market forecasts .................................................................................................................. 45

Chapter 3 Technical review ....................................................................................................... 53

Defining the elements .......................................................................................................... 53 Run-flat tyres ....................................................................................................................... 54 Tyre labelling ....................................................................................................................... 56 Tyre pressure monitoring systems (TPMS) .......................................................................... 56 Other innovations ................................................................................................................. 57

Chapter 4 Manufacturers ........................................................................................................... 58

Bridgestone ......................................................................................................................... 58 Continental .......................................................................................................................... 59 Cooper Tire & Rubber .......................................................................................................... 66 Goodyear ............................................................................................................................. 67

Hankook Tire ....................................................................................................................... 73 Kumho Tires ........................................................................................................................ 75 Michelin ............................................................................................................................... 77 Pirelli .................................................................................................................................... 79 Sumitomo Rubber Industries ................................................................................................ 80 Toyo Tire & Rubber Co Ltd .................................................................................................. 82 Yokohama Rubber ............................................................................................................... 82

Appendix: Glossary of terms .................................................................................................... 84

Page vi List of figures


List of figures

Figure 1: Manufacturer shares of global OE and aftermarket tyre market, 2009 (% of market value)

.............................................................................................................................. 38

Figure 2: European market shares for OE and replacement tyres for passenger cars and light

trucks, 2009 (% of volume) .................................................................................... 39

Figure 3: European market shares for OE and replacement tyres for medium- and heavy-duty

trucks, 2009 (% of volume) .................................................................................... 40

Figure 4: North America market shares for OE and replacement tyres for passenger cars and light

trucks, 2009 (% of volume) .................................................................................... 41

Figure 5: North American market shares for OE and replacement tyres for medium and heavy duty

trucks, 2009 (% of volume) .................................................................................... 41

Figure 6: South Korean OE tyre market shares, 2009 (% of volume) ........................................... 43

Figure 7: South Korean replacement tyre market shares, 2009 (% of volume) ............................. 43

Figure 8: World market for OE tyres for passenger cars and light truck applications by

geographical region, 2009 (% of volume) ............................................................... 44

Figure 9: World market for OE tyres for medium- and heavy-duty truck applications by

geographical region, 2009 (% of volume) ............................................................... 45

Figure 10: Continental AG’s passenger and light trucks tyres sales by region, 2007 and 2008 (% of

net sales) ............................................................................................................... 61

Figure 11: Continental AG’s commercial vehicle tyres sales by region, 2007 and 2008 (% of net

sales) ..................................................................................................................... 63

Page vii List of tables


List of tables

Table 1: Tyre size trends over six generations of VW Golf ............................................................. 4

Table 2: Bridgestone’s sales by geographical region, 2003-2008 (% of net sales) ....................... 29

Table 3: Goodyear’s tyre sales by operating segment, 2006-2008 (% of net sales) ...................... 29

Table 4: Michelin’s sales by geographical region, 2003-2008 (% of net sales) ............................. 30

Table 5: Cooper Tire & Rubber’s sales by geographical region, 2003-2008 (% of net sales) ........ 30

Table 6: Hankook Tire’s sales by geographical region, 2003-2008 (% of net sales) ..................... 30

Table 7: Kumho Tire’s sales by geographical region, 2003-2007 (% of net sales) ........................ 31

Table 8: Pirelli’s sales by geographical region, 2003-2008 (% of net sales) .................................. 31

Table 9: Toyo Tire & Rubber’s sales by geographical region, 2003-2009 (% of net sales) ............ 31

Table 10: Yokohama’s sales by geographical region, 2003-2009 (% of net sales) ....................... 32

Table 11: Manufacturer shares of global tyre market 1999-2009 (% of market value) .................. 38

Table 12: World light vehicle tyre sales by region, split by OE and replacement units, 2006-2017

(m units)................................................................................................................. 46

Table 13: European Union light vehicle tyre replacement units by market, 2006-2017 (m units) ... 48

Table 14: World medium- and heavy-duty truck tyre sales by region, split by OE and replacement

units, 2006-2017 (m units) ..................................................................................... 49

Table 15: World tyre sales (all applications) by region, split by OE and replacement units, 2006-

2017 (m units) ........................................................................................................ 51

Table 16: Bridgestone’s three generations of run-flat tyres, 1987-2010 ........................................ 55

Table 17: Bridgestone’s production and R&D operations worldwide, 2009 ................................... 59

Table 18: Goodyear’s tyre sales by operating segment, 2006-2008, (m tyres) ............................. 68

Table 19: Goodyear’s worldwide tyre sales, OE and replacement, 2003-2008 (m tyres) .............. 68

Table 20: Goodyear’s North American Tire sales, OE and replacement, 2003-2008 (m tyres) ..... 69

Table 21: Goodyear’s European Union Tire sales, OE and replacement, 2006-2008 (m tyres) .... 69

Table 22: Goodyear’s Latin American Tire sales, OE and replacement, 2003-2008 (m tyres) ...... 69

Page viii List of tables


Table 23: Goodyear’s Asia Pacific Tire sales, OE and replacement, 2003-2008 (m tyres) ............ 70

Table 24: Goodyear’s strategic business units, 2010 ................................................................... 70

Table 25: Goodyear’s tyre-related facilities worldwide, 2010 ........................................................ 71

Table 26: Hankook Tire’s consolidated sales and operating profit, fiscal years 2008, 2009 and

forecast for 2010, (KRW bn) .................................................................................. 75

Table 27: Michelin’s production sites worldwide, 2009 ................................................................. 77

Table 27 (continued): Michelin’s production sites worldwide, 2009 ............................................... 78

Table 27 (continued): Michelin’s production sites worldwide, 2009 ............................................... 79

Table 28: Pirelli tyre plants worldwide, 2010 ................................................................................ 79

Table 29: Sumitomo Rubber Industries’ net sales and operating income, 2006, 2007, 2008 and

nine months ended 30 September 2008 and 2009 (JPY m) ................................... 81

Table 30: The Yokohama Rubber Co Ltd’s tyre-related facilities in Japan, 2010 .......................... 83

Note: data in some tables may not sum due to rounding.

Page ix Preface


Preface

Research methodology

This report is intended to provide an overview of the road tyre industry,

providing top level market fitment, volume and value forecasts through 2017.

Our forecasts are not extrapolative but dependent on the underlying drivers of

supply and demand. Our forecasts are largely based on interviews with the

author’s extensive international network of industry contacts. This allows us to

consider and explain the meaning and implications of industry events, rather

than offer simple description based on incomplete data.

Our approach is divided into two distinct methodologies:

○ qualitative interviews – these are generally opinion-based, which aim

to build knowledge about future tyre market trends and company

strategies;

○ quantitative interviews – typically fact-based, focused on establishing

market values, shares, and volumes.

Our research typically concentrates on applications for light vehicles which

include all cars, light trucks and the various cross-over vehicle styles such as

sports utility vehicles and people carriers. These vehicles collectively account

for about 96% of the global vehicle build.

Our market forecasts are set out by region, i.e. European Union, Eastern

Europe and Russia, North America, Asia, Africa, South America, Middle East

and the Gulf, and the rest of the world. For the purposes of this report, the

European Union includes Austria, Belgium, Denmark, Finland, France,

Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain,

Switzerland, Sweden and the UK.

Report coverage

In this, the sixth edition of this report, just-auto reviews the key market drivers

for road tyres, and updates the market analysis. Following our market overview

in Chapter 1, just-auto’s product fitment forecasts in Chapter 2 predict in some

detail how the OE and replacement market for passenger car, light truck,

medium- and heavy-duty truck tyre market will evolve in the European Union;

Page x Preface


Eastern Europe and Russia; North America; Asia; Africa; South America;

Middle East and the Gulf; and the rest of the world from 2006 through to 2017.

This chapter includes exclusive Q&As with Bridgestone, Cooper Tire &

Rubber, Continental and Goodyear. An updated review of new product

developments is presented in Chapter 3, while Chapter 4 provides profiles of

the major manufacturers, namely Bridgestone, Continental, Cooper Tire &

Rubber, Goodyear, Hankook Tires, Kumho, Michelin, Pirelli, Sumitomo, Toyo

Tires, and Yokohama.

The author

Matthew Beecham has more than 18 years’ experience of researching, writing

and analysing market and technical trends in the global automotive

components industry. Since 2000, he has served as an associate editor for

just-auto. In addition to tyres, he authors a range of global auto components’

market research reviews, including batteries, braking systems, coatings,

clutches, cockpits, driver assistance systems, door modules, electric motors,

engine cooling systems, exhaust systems, front-end modules, fuel injection,

fuel tanks, glazing systems, ignitions, interiors, lighting, mirrors, roof systems,

shock absorbers, spark plugs, rotating electrics, tyre pressure monitoring

systems, wheels and wipers. Matthew’s freelance assignments have included

working for AT Kearney, Belron, Bridgehead International, McKinsey, Kuwait

Institute for Scientific Research, Motorsport Industry Association, Motor

Industry Research Association and the Economist Intelligence Unit. He has

also written for magazines including Car Graphic (Japan), JAMA (Japan) and

Automotive Engineer (UK). He was awarded a PhD in automotive technology

transfer from Cranfield University.

Chapter 1 Introduction


Chapter 1 Introduction

There are many factors shaping the global tyre market. Over the last 20 years,

the popularity of sport utility vehicles, minivans and crossover vehicles has

steadily increased, prompting manufacturers to redesign their tyres. Indeed,

the increasing segmentation of the car market has led directly to a more

complex tyre market. In response, manufacturers have focused on ways in

which to improve tyre dimensions, weight, rolling resistance, noise and fuel

efficiency. Social environmental awareness and advances in tyre technology

will also play an increasingly important role in the definition of tomorrow’s

tyres.

Perhaps the most dramatic innovation in tyre technology over the past decade

or so has been the development of the run-flat tyre. Run-flat tyres are specially

constructed enabling them to be driven on in the event of loss of air pressure.

It means the driver can either drive home or to a garage to fix the tyre. Run-flat

tyres allow a m otorist with a puncture to drive the c ar up to xxx m iles at a

m axim um speed of xxm ph before repairing the t yre .

Chapter 2 The market


Chapter 2 The market

Market trends

Although brands have always played a part in tyre marketing, they have

assumed much more importance in the last decade with the emergence of

global players and the acquisition of a portfolio of existing brands as a result of

the takeover of other firms. The increasing segmentation of the car market has

led directly to a much more complex segmentation of the tyre market.

There has always been a price differentiation in the tyre industry. With the

advent of specialist vehicles such as super sports cars, sports utility vehicles

and minivans, this has led to specialist tyres being developed for them, usually

at above average prices. This is particularly the case for the OEM market,

where the increasing sophistication of vehicle design has led to specific tyres

being designed for specific vehicles, but it is also true of the replacement

market. There is a tendency for the OEM brand to be specified for replacement

tyres for any vehicle, but for some specialist vehicles this becomes almost

obligatory, as there are very few makes of tyre designed for some low-volume

vehicles.

Tomorrow’s tyre market is expected to be led by the ultra high-performance

(UHP) tyres which offer enhanced driving control, run-flat tyres which ensure

safe driving even in the event of a flat tyre, and ultra fuel efficiency tyres. In

particular, with the rapid growth of the hybrid vehicle market, the tyre industry

has recently been concentrating on developing fuel-efficient products.

Continental believes that there are still opportunities for growth within the

highly competitive passenger and light truck tyre sector despite the current

economic climate. More specifically, Continental is planning to expand its

summer tyres segment, especially with regard to high-performance tyres.

Nikolai Setzer, member of the board at Continental AG and head of the

company’s passenger and light truck tyres division, said: “On the one hand, we

are anticipating that this area will see the largest and most profitable market

growth during the next few years, with annual growth of more than x% until

2012. On the other hand, our high competitiveness in this sector is

demonstrated by our extremely technological orientation.”

Chapter 3 Technical review


Chapter 3 Technical review

Defining the elements

Tyres remain a key technology within chassis engineering. Quite apart from

the fact that vehicle grip and handling behaviour ultimately depends entirely on

the physics and mechanics of what happens within the four tyre contact

patches, the tyres also make significant contributions towards determining ride

com fort (since the tyre contributes up to xx% of the total spring rate), internal

and external vehicle noise, and economy.

An important distinction in car and truck tyres is made between bias tyre

construction and radial tyre construction. Radial-ply tyres have long since

become the norm for light-duty vehicle use. Bias-ply tyres are now only fitted to

motorcycles, bicycles, excavating machines and industrial and agricultural

machines. Michelin first introduced steel-belted radial tyres in Europe in 1948.

Radial tyres are so nam ed becaus e the ply c ords radiate at a xx ° angle from

the wheel rim, and the casing is strengthened by a belt of steel fabric that runs

around the circumference of the tyre. In radial tyres, the ply cords are made of

nylon, rayon or polyester. The belt over-wrap of a radial tyre uses less tread

distortion under load and more sidewall distortion. The advantages of radial

tyres include longer tread life, better steering characteristics and less rolling

resistance, which increases fuel consumption. On the other hand, radials have

a harder riding quality, and since they are technologically more complex than

bias-ply t yres, they are about xx% m ore expensive to m ak e when volum es are

comparable. Because of their construction, radial tyres require a different

suspension system from that used by cars designed for bias-ply tyres.

Tyres are classified according to the respective requirements of various

vehicle types and sizes, and operating conditions. The essential data – tyre

dimensions, load ratings, specified inflation pressures and authorised speeds –

are standardised in the interests of interchangeability in the following seven

tyre categories:

○ engine-driven, two-wheeled vehicles – motorcycles and motor

scooters;

○ passenger cars;

○ light-duty trucks – including delivery trucks;

○ commercial vehicles – including multi-purpose vehicles;

Chapter 4 Manufacturers


Chapter 4 Manufacturers

Bridgestone

Bridgestone is the world’s largest manufacturer of tyres and other rubber

products. More specifically, the company produces tyres and tubes for

passenger cars, trucks, buses, construction and mining vehicles, industrial and

agricultural machinery, aircraft, motorcycles and scooters. Tyres account for

xx% of Bridgestone’s sales.

Bridgestone also produces antivibration and noise insulating materials,

polyurethane foam products, office equipment, industrial rubber products,

building materials, belts, hoses, marine products and other rubber parts. Tyres

account for xx% of Bridges tone Group sales worldwide.

The company also manufactures industrial rubber and chemical products, and

sporting goods.

Bridgestone em ploys xxxxxxx people (as of Decem ber 2008) worldwide. The

location of its tyre operations are set out in the following table.

global market review of automotive tyres forecasts to 2017 ... · pdf filetable 11:...

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