– The tyre industry is slowly returning to its normal operations after a period of severely shaken performance due to the COVID-19 pandemic. The second quarter of 2020 was dominated by intensive efforts by the tyre industry to respond to the direct and indirect effects of the pandemic. Most tyre manufacturers have implemented action plans that took account of this unique situation and where the health and safety of both customers and employees remained a top priority. At the same time, we have made every effort to meet the needs of all our clients. Given these particular market conditions, the second quarter results – especially in June – showed a positive shift in the sales trend. As it is a global market, its reconstruction does not only depend on the improvement of the economic situation of individual European countries. We all operate in an interconnected system and international supply chains. Undoubtedly, in the context of the second half of the year, there is a need for government support action plans prepared in advance and well-thought-out action strategies that take into account both the epidemic and economic security – said Andrzej Włodarczyk, president of the board of the Polish Tyre Industry Association.
– In the first half of 2020, we recorded double-digit sales declines in all tyre segments. The deep crisis in Europe meant that the purchases of new tyres were postponed – both for private cars and in fleets. This is particularly evident in the results of sales of tyres in commercial and SUVs segments, in which sales in the second quarter of 2020 decreased by 41 and 35%, respectively, when compared to the same period last year. The second quarter started with disastrous results that only slightly improved in some categories. The postponement of the replacement season meant that it was only at the end of the second quarter that sales of summer and all-season tyres increased. However, looking at the perspective of the entire quarter, the declines are very severe – adds Piotr Sarnecki, general director of the Polish Tyre Industry Association.
The European tyre market is still in the red
After having been shut for an average of 33 days due to Covid-19, all tyre manufacturers in Europe slowly resumed their production in May when most European countries eased their lockdowns. As a result, there was a slight upward trend in tyre replacement sales visible towards the end of the quarter. Whether this trend will hold remains to be seen in the coming months
The European tyre industry welcomes all measures that have already been taken at European and national levels to mitigate the impact of the crisis and looks forward to additional schemes to stimulate and support a successful economic recovery.
– The tyre sector’s full recovery is still far away. For the moment, we can only hope for the market to stabilise in the second half of the year. Our outlook for 2020 remains bleak with a double-digit drop in sales expected across all segments – said Fazilet Cinaralp, Secretary General of ETRMA.
Source: Polish Tyre Industry Association