The tire market - France

The tire (tire segment) is produced mainly from rubber and inflated with air or nitrogen. It provides grip and shock absorption by surrounding the metal rim of a vehicle. Tires are characterized by a particular tread pattern (symmetrical, asymmetrical, directional) and a specific type of use (depending on vehicle type, suitable for snowy weather, racing vehicles, etc.). We must also distinguish between sales of tires directly installed on a newly-registered car ("original equipment") and so-called replacement sales of new or retreaded tires. A distinction is also made between tires for sedans, SUVs and 4x4s, vans, trucks and other vehicles. The French market suffered from declining sales at the end of 2018. However, certain market segments remain dynamic, such as off-road and truck tires, which are resisting the downward trend in the sector. The market also faces international competition, particularly from Germany and China. The market can rely on its international players and, above all, on the development of online sales by "pure players", even if they partly undermine the business of specialist retailers (in physical outlets), who lose market share every year. The boom in online sales is contributing to the downward trend in consumer prices, while reducing manufacturers' and distributors' margins. Lower prices are prompting the sector's major players to offer ever more differentiated products to justify higher price levels, and to constantly renew their ranges and innovations (compressed-air-free technology, for example). The "premium" and "top-of-the-range" segments of the offer are thus doing well, with sales figures on the rise. The Covid-19 epidemic had a severe impact on the original equipment tire segment, but replacement sales should remain stable, enabling manufacturers to weather this external shock. The sector has been hit hard by inflation, with average prices rising by more than 10% across all segments and distribution channels. The global tire market was estimated at $245 billion in 2022 and $262 billion in 2023. It is expected to grow at an average annual rate of 7.4% until 2028. On a national scale, the volume of tire production and retreading will amount to over 30 million in 2023.