Tyre Industry Market Report 2006
Key Note Publications Ltd, November 2006
The total apparent UK market for rubber tyres and tubes is estimated to have been worth £1.35bn at manufacturers' selling prices (msp) in 2005, which is more or less unchanged on 2004. Domestic production of tyres and tyre exports are both declining, although imports continue to rise. Imports are accounting for an increasing share of the market, and represented an estimated 87.1% of the total apparent UK market for rubber tyres and tubes in 2005.
The main product sectors considered in this report are: tyres for passenger vehicles; tyres for light commercial vehicles; tyres for heavy commercial vehicles; tyres for motorcycles and scooters; other tyres, which includes tyres for agricultural vehicles, civil engineering vehicles, construction or industrial handling vehicles, bicycles and aircraft; and retread tyres. Inner tubes and tyre flaps are other minor sectors. Passenger car tyres make up the largest sector of the market.
The UK tyre manufacturing sector continues to be seriously affected by competition from suppliers in low-cost countries. The latest fall-out from this has been the announced closure of one UK tyre manufacturing plant and job cuts in other UK factories. The construction of new low-cost tyre manufacturing plants in Hungary and Poland is likely to exacerbate the problem further for UK producers.
Prices of the basic raw materials for tyre production — including oil, steel, synthetic rubber, carbon black and natural rubber — are all continuing to rise. These increases have put tyre manufacturers under considerable cost pressures and have seriously affected their profitability. Regular price rises have become the norm, although these are often not high enough to cover the increased costs of the raw materials.
The overall value of the market is forecast to fall further in 2006, before showing modest year-on-year growth to the end of the forecast period (2010). Plant closures, high and rising raw materials costs, increases in the price of new tyres, falls in new vehicle registrations and generally depressed market conditions in the UK motor sector are likely to dampen consumer and industry demand for new and replacement tyres, and limit the potential for higher rates of growth, at least in the short term.
1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Types of Tyres Used
MARKET TRENDS
UK Vehicle Market Contracts
Size of Car Parc Continues to Increase
Raw Materials
Rising Prices Hit Profits
Import Penetration Continues to Increase
Another UK Tyre Production Plant Closes
ECONOMIC TRENDS
Gross Domestic Product
Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
Population
Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
Inflation
Table 3: UK Rate of Inflation (%), 2001-2005
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005
Household Disposable Income
Table 5: UK Household Disposable Income Per Capita (£), 2001-2005
MARKET POSITION
The UK
Table 6: The Total Apparent UK Market for Motor Vehicles and Components by Sector by Value (£m at msp), 2001-2005
Figure 1: The Total Apparent UK Market for Motor Vehicles and Components by Sector by Value (£m at msp), 2001-2005
Overseas
2. Market Size
THE TOTAL MARKET
Rubber Tyres and Tubes
UK Manufacturers' Sales of Rubber Tyres and Tubes
Table 7: UK Manufacturers' Sales of Rubber Tyres and Tubes by Sector by Value (£000 at msp and %), 2001-2005
Figure 2: UK Manufacturers' Sales of Rubber Tyres and Tubes by Value (£000 at msp), 2001-2005
Apparent UK Market for Rubber Tyres and Tubes
Table 8: The Total Apparent UK Market for Rubber Tyres and Tubes by Value (£000 at msp), 2001-2005
Figure 3: The Total Apparent UK Market for Rubber Tyres and Tubes by Value (£000 at msp), 2001-2005
Retreaded and Rebuilt Rubber Tyres and Tubes
UK Manufacturers' Sales of Retreaded and Rebuilt Rubber Tyres and Tubes
Table 9: UK Manufacturers' Sales of Retreaded and Rebuilt Rubber Tyres and Tubes by Sector by Value (£000 at msp and %), 2001-2005
Figure 4: UK Manufacturers' Sales of Retreaded and Rebuilt Rubber Tyres and Tubes by Sector by Value (£000 at msp), 2001-2005
Apparent UK Market for Retreaded and Rebuilt Rubber Tyres and Tubes
Table 10: The Total Apparent UK Market for Retreaded and Rebuilt Rubber Tyres and Tubes by Value (£000 at msp), 2001-2005
Figure 5: The Total Apparent UK Market for Retreaded and Rebuilt Rubber Tyres and Tubes by Value (£000 at msp), 2001-2005
BY MARKET SECTOR
Rubber Tyres and Tubes
Tyres for Passenger Cars
Table 11: The Total Apparent UK Market for New Rubber Tyres for Motor Cars by Value (£000 at msp), 2001-2005
Tyres for Light Commercial Vehicles
Table 12: The Total Apparent UK Market for New Rubber Tyres for Light Commercial Vehicles† by Value (£000 at msp), 2001-2005
Tyres for Heavy Commercial Vehicles
Table 13: The Total Apparent UK Market for New Rubber Tyres for Heavy Commercial Vehicles† (£000 at msp), 2001-2005
Tyres for Motorcycles and Scooters
Table 14: The Total Apparent UK Market for New Rubber Tyres for Motorcycles and Scooters† (£000 at msp), 2001-2005
Retreaded and Rebuilt Rubber Tyres and Tubes
Retreaded and Rebuilt Rubber Tyres for Buses and Lorries
Table 15: The Total Apparent UK Market for Retreaded Rubber Tyres for Buses and Lorries (£000 at msp), 2001-2005
Retreaded and Rebuilt Rubber Tyres for Motor Cars
Table 16: The Total Apparent UK Market for Retreaded Rubber Tyres for Motor Cars (£000 at msp), 2001-2005
OVERSEAS TRADE
Table 17: Imports and Exports of Rubber Tyres and Tubes by Value (£000), 2001-2005
Table 18: Import Penetration of Rubber Tyres and Tubes (£000 and %), 2001-2005
Table 19: UK Import and Export Markets for Rubber Tyres and Tubes by Region (£000 and %), 2005
Table 20: Leading UK Import and Exports Markets for Rubber Tyres and Tubes by Country (£000 and %), 2005
3. Industry Background
RECENT HISTORY
INDUSTRY SYNOPSIS
Table 21: Financial Results for Companies Involved in the Manufacture of Rubber Tyres and Tubes (£000 and %), Latest Financial Year
NUMBER OF COMPANIES
Tyre Manufacturers
Table 22: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Rubber Tyres and Tubes by Turnover Sizeband, 2001-2005
Retreaders and Rebuilders
Table 23: Number of UK VAT-Based Enterprises Engaged in the Retreading and Rebuilding of Rubber Tyres by Turnover Sizeband, 2001-2005
EMPLOYMENT
Tyre Manufacturers
Table 24: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Rubber Tyres and Tubes by Employment Sizeband, 2004 and 2005
Retreaders and Rebuilders
Table 25: Number of UK VAT-Based Enterprises Engaged in the Retreading and Rebuilding of Rubber Tyres by Employment Sizeband, 2004 and 2005
REGIONAL VARIATIONS IN THE MARKETPLACE
Table 26: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Rubber Tyres and Tubes and in the Retreading and Rebuilding of Rubber Tyres by Government Regional Office, 2005
DISTRIBUTION
HOW ROBUST IS THE MARKET?
Table 27: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Rubber Tyres and Tubes and in the Retreading and Rebuilding of Rubber Tyres by Age of Business, 2005
LEGISLATION
Ban on the Disposal of Tyres to Landfill Sites
Legislation Covering the Use of Tyres
New Tyres
Retread Tyres
Tread Requirements
Mixing Tyres
Spare Tyres
Penalties Relating to Faulty Tyres
KEY TRADE ASSOCIATIONS
BIPAVER
British Rubber Manufacturers' Association
European Tyre Recycling Association
The Imported Tyre Manufacturers' Association
National Tyre Distributors Association
Retread Manufacturers Association
Tyre Industry Council
Tyre Industry Federation
The Tyre Recovery Association
Used Tyre Working Group
4. Competitor Analysis
THE MARKETPLACE
Table 28: Selected Leading Manufacturers of Tyres by Turnover and Pre-Tax Profit (£m), Latest Financial Year
MARKET LEADERS
Bridgestone UK Ltd
Company Structure
Current and Future Developments
Financial Results
Continental Tyre Group Ltd
Company Structure
Current and Future Developments
Financial Results
Cooper Tire & Rubber Company Europe Ltd
Company Structure
Current and Future Developments
Financial Results
Dunlop Tyres Ltd
Company Structure
Current and Future Developments
Financial Results
Goodyear Dunlop Tyres UK Ltd
Company Structure
Current and Future Developments
Financial Results
Hankook Tyre UK Ltd
Company Structure
Current and Future Developments
Financial Results
Kumho Tyre (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Michelin Tyre PLC
Company Structure
Current and Future Developments
Financial Results
Pirelli UK Tyres Ltd
Company Structure
Current and Future Developments
Financial Results
Trelleborg Wheel Systems UK Ltd
Company Structure
Current and Future Developments
Financial Results
Watts Industrial Tyres PLC
Company Structure
Current and Future Developments
Financial Results
The Yokohama Rubber Company Ltd
Company Structure
Current and Future Developments
Financial Results
Other Companies
BRISA (Lassa)
Falken Tire Trading
Nokian Tyres
Toyo Tire & Rubber Company Ltd
Vredestein (UK) Ltd
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 29: Main Media Advertising Expenditure on Tyres by Brand (£000), Years Ending June 2005 and 2006
Table 30: Main Media Advertising Expenditure on Tyres and Exhaust Centres (£000), Years Ending June 2005 and 2006
Exhibitions
5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
6. Buying Behaviour
INTRODUCTION
CONSUMER PENETRATION
Table 31: Penetration of Adults Who Bought Tyres in the Last 12 Months (%), 2005
By Sex and Age
Table 32: Penetration of Adults Who Bought Tyres in the Last 12 Months by Sex and Age (%), 2005
By Social Grade and Family Income
Table 33: Penetration of Adults Who Bought Tyres in the Last 12 Months by Social Grade and Family Income (%), 2005
By Region
Table 34: Proportion of Adults Who Bought Tyres in the Last 12 Months by Region (%), 2005
CONSUMER PROFILE
Table 35: Profile of Tyre Purchasers by Sex, Age, Social Grade, Family Income and Region (% of adults), 2005
By Type of Tyre
Table 36: Profile of Tyre Purchasers by Type of Tyre by Sex, Age, Social Grade, Family Income and Region (% of adults), 2005
By Rate of Purchase
Table 37: Profile of Tyre Purchasers by Rate of Purchase by Sex, Age, Social Grade, Family Income and Region (% of adults), 2005
7. Current Issues
EUROPEAN ISSUES
Retread Tyres Legislation
INTERNATIONAL ISSUES
The Cost of Rubber Falls
SAFETY
Tyre Manufacturers Issue `Best Before' Replacement Advice
Bad Tyres Risk Lives
Change in Law Wanted to 3mm Thread
Part-Worn Tyres
PRODUCT DEVELOPMENT
The Formula One Championship
Goodyear's Fuel-Saving Tyres
CORPORATE ACTIVITY
Higher Tyre Prices
Continental AG
The Goodyear Tire & Rubber Company
Michelin
Hankook
Vredestein Banden
LEGISLATION
Ban on Landfilling of Tyres
Keep the Noise Down!
ENVIRONMENT
Michelin's Green Tyres
8. The Global Market
MARKET SIZE
By Value
Table 38: The World Tyre Market by Value (£bn at msp), 2001-2005
By Product Type
Table 39: The Estimated World Tyre Market by Product Type by Value (£bn at msp and %), 2005
By Volume
Table 40: World Tyre Production by Volume (million), 2001-2005
LEADING MARKETS
Table 41: Leading Tyre-Producing Countries by Volume Share (%), 2000-2004
Table 42: The World Tyre Market by Region by Volume (million), 2005
The US
Table 43: Tyre Shipments in the US (million), 2002-2006
Japan
Table 44: Tyre Production in Japan by Value and Volume (¥bn and million), 2001-2005
MARKET SHARES
Table 45: Manufacturers' Shares of the World Tyre Market by Volume (%), 2005
GLOBAL VEHICLE PRODUCTION
Table 46: Global Vehicle Production by Volume (million), 2001-2005
Leading Producer Countries
Table 47: Leading Motor Vehicle Production Countries by Volume (number of vehicles and %), 2004 and 2005
THE FUTURE
9. Forecasts
INTRODUCTION
The Economy
Gross Domestic Product
Table 48: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010
Inflation
Table 49: Forecast UK Rate of Inflation (%), 2006-2010
Unemployment
Table 50: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010
Population
Table 51: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010
FORECASTS 2006 TO 2010
Table 52: The Forecast Total Apparent UK Market for Rubber Tyres and Tubes by Value (£000 at msp), 2006-2010
MARKET GROWTH
Figure 6: The Forecast Total Apparent UK Market for Rubber Tyres and Tubes by Value (£000 at msp), 2001-2010
FUTURE TRENDS
Global Markets
The Cost of Rubber Falls
Rubber Production is Set to Rise
Manufacturing Output Switches to Eastern Europe
Investment in the UK Motor Industry
New Car Registrations Fall Again
10. Company Profiles
Bridgestone Uk Ltd
Continental Tyre Group Ltd
Cooper Tire & Rubber Company Europe Ltd
Goodyear Dunlop Tyres Uk Ltd
Michelin Tyre PLC
Pirelli Uk Tyres Ltd
Watts Industrial Tyres Plc
11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Rebounds
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006
Fewer Adults Wish to Borrow
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), August 2005-2006
SPENDING FROM SAVINGS
Strong Recovery in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006
Savings Grow in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), August 2005-2006
12. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Bisnode Sources
- Bridgestone UK Ltd
- BRISA (Lassa)
- Continental Tyre Group Ltd
- Cooper Tire & Rubber Company Europe Ltd
- Dunlop Tyres Ltd
- Falken Tire Trading
- Goodyear Dunlop Tyres UK Ltd
- Hankook Tyre UK Ltd
- Kumho Tyre (UK) Ltd
- Michelin Tyre PLC
- Nokian Tyres
- Pirelli UK Tyres Ltd
- The Yokohama Rubber Company Ltd
- Toyo Tire & Rubber Company Ltd
- Trelleborg Wheel Systems UK Ltd
- Vredestein (UK) Ltd
- Watts Industrial Tyres Plc
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