In-depth Analysis of the Tire Market in January

Recently, Michelin's newly released January 2025 tire market analysis report shows that global economic uncertainties and geopolitical challenges have had a profound impact on the tire market, with significant differences in the performance of different regions and market segments.

The report points out that under the influence of economic instability, the demand in the original equipment market for passenger car and light truck tires has continued to be sluggish. The European market has shrunk by 12% compared with the same period last year, and the North and Central American markets have also declined by 6%. Notably, due to the change in the timing of the Chinese Lunar New Year, the Chinese market has experienced a decline of 34%, becoming the region most severely affected. Globally, the overall original equipment demand has decreased by 15%.

In the replacement tire market, the situation is different. This market has shown greater resilience, especially in Europe and North America. The European market has achieved a 7% growth, mainly due to the strong performance of the winter tire and all-season tire market segments. The North and Central American markets have also achieved a 4% growth. However, the Chinese market is still affected by the change in the holiday calendar and has declined by 17%. Despite regional differences, the global sales volume of replacement tires has generally remained stable, with no significant change compared with the same period last year.

According to the Carbon Black Industry Network, the original equipment market for truck and bus tires is also facing severe challenges. The demand in the European market has decreased by 18%, the North and Central American markets have declined by 17%, while the South American market has shown relatively strong resilience, only decreasing by 2%. Globally (excluding China), the demand in the original equipment market for truck and bus tires has shrunk by 10%. In the replacement tire market, the situation is more complex. The European market has grown by 3%, demonstrating a certain degree of market resilience; while the North and Central American markets have significantly declined by 9%. The 3% growth in the South American market has offset the decline trend in other regions to some extent. Globally (excluding China), the replacement tire market as a whole has shrunk by 2%.