European tyre market to experience prolific growth in Central and Eastern Europe

By 2017 the European tyre market has been forecast to reach a value of 373 million units, with small and medium sized countries of Central and Eastern Europe expected to strengthen their economy, which will lead to the tyre industry growing at rapid pace in eastern regions.

The most pronounced opportunities for growth look set to be experienced in Central and Eastern Europe where the recession did little to temper the development of the tire markets; in 2011 the tire market in the Ukraine grew by 12%. This upward trend is expected to continue for many of these countries.

The tyre industry is one sector whose growth is solely dependent on the automotive market. With the number of automobiles on European roads constantly increasing, the demand for tyres has also been improving, but only marginally due to the current economic climate.

However, the tire sales scenario is expected to change post 2013 after a series of policy and regulatory changes being implemented by the European Union. The legislation, due to be introduced in November 2012, speaks to the core concerns of consumers: cost, quality, and safety.

Within the UK, declining tyre sales were not only driven by the impact of economic problems but also consumers restricting their budgets.

While all markets are expected to grow slightly by 2015, the UK is predicted to experience substantial growth of up to 10.3%.

By 2017, the OEM tyre market is expected to grow at the compound annual growth rate (CAGR) of 3.4% to reach 118 Million units.

Winter tire opportunities are present in many of the more established markets across Europe and present the chance for value growth in an environment that expects only modest growth overall.

Many of the prime candidate countries for winter tire use are currently underexploited, such as the UK, where only 10% of sales are currently for winter tires.

Most of the major tyre manufacturers have already started the procedures to adopt new tire technology and improve distribution networks in order to remain dominant.

For more information on the European tyre market, see the latest research: European Tyre Market Report

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