Michelin predicts drop in tyre demand this year

French tyre manufacturer, Michelin is predicting that the passenger car and light truck tyre markets will decline by one per cent year-on-year for the full year 2019.

The modest one per cent growth in the replacement segment fails to offset the steep 4.4 per cent contraction in the original equipment segment, Michelin stated in its Q2 report for 2019.

The truck tyre markets are expected to decline quicker in the second half, to end the year down two per cent, Michelin adds.

The mining and aircraft tyre markets should continue to expand, offsetting the steep drop in agricultural tyre markets and in OE demand in construction tyre markets. The full-year impact of raw materials costs and customs duties is estimated at around a negative €100m, as forecast by Michelin.