Tyre Experts Suggestions and Analysis on the Performance of the First Quarter

Tire Research Industry’s team interviewed the head of the Continental tire business. Christian Kötz discussed how the tire industry needs to be more welcoming for the people who want to enter the tire market, also should become proactive about the usage of raw materials and developing a circular economy. As an expert in the tire industry, he also suggested that young talent should be entering the market and adopt an ambitious sustainability strategy. By young talent entering the market, the market will be vast and new ways and strategies would be seen.

• Expert’s Discussion On Carbon Reduction:

  The Mobility & Tire webinar hosted by Tire Industry Research. The discussion on that was about various ideas and news. The three seniors speakers from Boston Consulting Group on 12 January in the webinar about that the fact that tires are not top of the need list for the vehicle producers, all providers will be asked to work with fully carbon-neutral supply chains.

  Today, the best pressing factor is pushing steel-and aluminum-part producers toward this path. In a couple of months two or three, all things considered, the tire creators will likewise have to exhibit how they are adding to decreasing the all-out carbon impression of the automotive supply chain.

  Speakers, Dr. Jens Burchardt, Dr. Andrej Levin and Alfred Wiederer all of the BCG, pushed home the message that all the vehicle manufacturers are nearly rivaling each other to declare the most eager focus for carbon decrease inside their activities, and particularly among their separate upstream supply chains.

• Raw Material & Freight Skyrocketing:

  The raw material is not only getting expensive nowadays but there is a shortage in the raw material now. In the current times, there is sufficient uncertainty in supply and demand. All so on the other hand freights are skyrocketing. The reason behind the rate increase of shipping cost is because a lot of containers were stuck in Europe and the companies were not bearing the cost of returning an empty container. Besides, there has been something of a boom in internet shopping while individuals were stuck at home in a pandemic situation, and that has additionally expanded interest for delivery space emerging from Asia.

  Meanwhile, the rubber suppliers will be increasing prices to cover the loss consumed in 2020.

• Pandemic Impact On Tire Sales:

  Chinese, Japanese, and European tire companies published the stats of their tire sales a couple of months back and it showed that the demand has changed in the past 12 months. Most of the graphs of 2020 were sloping downwards this indicates the activity of the tire industry.

• Impact of the pandemic hits in import data to EU and USA:

  Eleven months into the year, imports of TBR tires into the EU-27 are even over 12% beneath similar 11 months of 2019. Complete import volume for the initial 10 months of 2020 was 5.19 million units (2019: 5.92 million).

  The information shows that imports of TBR tires to the US are proceeding to increment quickly, since the lows of April and May, however, absolute imports are still around 14% beneath the levels seen a year prior. Eleven months into the year, imports of these items to the US have arrived at simply more than 86% of the initial eleven months of 2019. In the US, imports of vehicle tires in November fell off the record found in October, yet complete imports in the 11 months to November were under 2% beneath a similar period in 2019. Before the year’s over, they anticipate that total imports should marginally surpass the 2019 level.

  In the EU, imports of light truck tires up to November keep on being at an undeniable level. Earlier years have seen a decrease in imports of light tires over the most recent two months of the year, yet there is no indication of that occurrence in 2020.

• China’s tire industry after 2020:

  Aside from the unavoidable yearly surveys and vendor gatherings that consistently happen in January, the news this month was overwhelmed by two things:

  1. Duties and taxes on tires made in Asia and imported to the US
  2. The resurgence of the Novel Coronavirus. (Covid-19).

  China’s tire industry is waking up step by step as this is a hard time for the industry the world is getting back to normal and hopefully, the tire sales will be increasing in the upcoming months. Every industry is having a tough time certainly. There was a hike in the prices in the first months but some factories have stabilized their price and hopefully in the coming months prices will be good for the consumers and the market activity will be increased.

  All the analysis is based on the article published by Tire Industry Research.