Tire industry on a roll

4/10/2014 - Report
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1.2 billion tires are sold globally. Bridgestone, Michelin and Goodyear dominate, with a combined market share of 40%. The sector is subject to the volatility of the prices of its main raw materials (natural and synthetic rubber), which requires strong pricing power. Euler Hermes expects real growth of +4% for the next three years and high profitability for the major companies (more than 10% of revenue in 2013, twice as high as in 2009).Only 25% of tire makers' production is sold directly to car manufacturers for original equipment; 75% is sold in the replacement market through different distribution networks. Developing integrated sales networks remains a profitable strategy for the major companies in order to establish loyalty among rental fleets and maximize margins.

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Tire industry on a roll - Report