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COMPANY NEWS
Continental Looks Ahead After a Mixed 2011
operators to fit winter tyres to remain operational and additionally for safety.
Tracey Hyem, Marketing Manager Commercial Tyres, said, “On the whole the UK truck tyre market is almost on par with 2010’s figures, which, in the context of the current economic situation, can be seen as a positive. The retread market is one segment, which has remained stable over the year at just over a million units in the UK and Ireland, but as operational costs continue to escalate, we could see these tyres continuing to be an attractive option in 2012 as more and more operators look to optimise fleet efficiency.
“With this in mind, Continental has expanded its ContiRe range of retreaded tyres significantly with the introduction of key new sizes and second-generation patterns.
“The new tyre range will comprise of 33 different sizes next year for almost every application and in future our retread range will mirror the new tyre line-up. This will give operators the widest possible choice in choosing the right tyre for the right application at a cost to suit their budget”.
For the UK, the most popular tyre size remains the 295/80 R22.5, commanding 27 per cent of the market. In the first 10 months of 2011 the 315/80 R22.5 Regional steer and drive tyres enjoyed an upswing in sales over the last five years rising from 7 per cent to 10 per cent. Other sizes like 245/70 R19.5, 265/70 R19.5 and 315/70 R22.5 have also enjoyed gradual increases in market share.
For 2012, Continental will be adding a number of new tyres to the range including updates to the 22.5-inch long distance steer and drive tyres. Furthermore, the third-generation trailer tyre, the HTL3, will be showcased in the third quarter and going on sale in early 2013.
Next year is shaping up to be an extremely challenging year for all industry stakeholders and legislative changes in the form of tyre labelling and Euro-6 will undoubtedly have an influence on the market. However, given Continental’s holistic tyre offering of products and services, the company is well-placed to provide first-class support for all its new and existing customers in 2012.
The German tyre maker holds an annual overview of the market to the press. In late 2011 the company reviewed the UK and Irish truck tyre markets. The overall picture was challenging, with the UK markets dropping slightly compared to a growth in the
European sector. However, the Irish market showed a decline: Both indicating that the economy has a way to go before it starts pulling out of the ongoing economic issues. Yet, the increases in Europe seem to defy the received wisdom that all is doomed for the Euro zone.
Continental Tyres UK Market Overview 2011
The truck tyre market in 2010 saw modest gains in terms of sales and growth compared with 2009. However, the market still remained challenging for the entire industry. This trend has continued into 2011 and despite renewed confidence and the improvement in truck registrations, the tyre market has remained below last years’ levels for the period ending in October. The latest forecast for the UK’s replacement tyre market for 2011 is expected to be roughly one million units, which will be marginally down on 2010’s figure of just over 1,050,000 units. Conversely though,
year, but has now settled back down to 30 per cent above January 2011’s rate.
Also in 2011 tyre availability across the market continued to problematic for both customers and manufacturers. This was attributed to a quicker-than- expected demand for replacement and OE-fitment tyres following the recession. The situation has now stabilised and we are seeing that premium tyres are, under the economic circumstances, performing well, but mid-range tyres are coming under increasing pressure from budget Chinese manufacturers. This year the goods segment
remains the largest sector in the UK, accounting for 90 per cent of the replacement tyre market, while construction (5.5 per cent), people-moving (4 per cent) and winter tyres (0.5
per cent) make up the remainder. Winter tyres are relatively new to the UK market in terms of quantity sold and have gained a recognised market share for the first time – albeit very small at 0.5 per cent in the UK. This is down to the heavy snowfalls in 2009 and 2010, which prompted hauliers and bus and coach
Continental Tyres Ireland Market Overview 2011
European countries experienced positive growth in replacement tyre sales with an average increase of 3 per cent overall. One of the major issues facing the tyre industry in 2011 has been the dramatic increase in raw material costs. Natural rubber peaked at 60 per cent above rates at the start of the
For the first 10 months of 2011 truck registrations improved steadily and overall there were encouraging signs that the truck tyre market would mirror this growth in Ireland, however this did not materialise as the market slipped back when compared with the preceding year. In 2011, the Irish replacement tyre market was down 19 per cent to October and initial forecasts suggest that it will finish on roughly 92,000 units for the 12-month period. Registrations year-to-date are up almost 5 per cent on the same period in 2010, however, the total market is small in comparison to the UK and other European markets with just over 1,000 registrations to the end of October. In terms of the most popular tyre sizes, Ireland’s biggest selling tyre is the 315/80R22.5 with 33 per cent share (19 per cent of that being steer tyre) closely followed by 295/80R22.5. According to Tracey Hyem, “The Irish truck tyre market is significantly down when compared with 2010 with a 19 per cent drop in sales. The UK and Ireland markets were both affected by price rises brought about
by an above average increase in raw material costs. We have continued with our commitment to help our customers manage their tyre costs and we have done this by expanding our ContiRe range of retreaded tyres, which provide 90 per cent of new tyre mileage at only 70 per cent of the cost”.
In terms of retreaded tyres, both the UK and Ireland markets have remained stable at just over one million units combined, which is due to the fact that retreaded tyres are less exposed to the declines in vehicle production than the OE- fitment and replacement new tyre markets.
Hyem said, “As bus, coach and truck operators look to streamline costs, Continental continues to offer products that deliver the lowest overall driving costs backed up by a variety of services that aim to keep vehicles on the road at all times. The Irish market in particular has recently benefited from Continental’s fully integrated Conti360° partner network with 37 new sites now available throughout the country”.
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