Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/244093
Facts section: Tire shipments RMA predictions Te Rubber Manufacturers Association (RMA) estimates passenger, light truck and truck tire demand will total 302 million in 2014, an increase of nearly 2%. "A declining unemployment rate, a rebound in housing, increases in vehicle sales and vehicle miles traveled, as well as other macroeconomic factors are expected to account for the 2014 increase." Here are the RMA estimates for 2014 by category, based on its own fgures for 2013, and the reasons behind them. (Te RMA includes an estimation of temporary spares in total original equipment and total replacement shipments, but does not report them publicly.) 1. OE passenger tires: up approximately 1.5 million units. "Light vehicle sales are expected to approach 16 million units." 2. OE light truck (LT) tires: up 100,000 units, or 2%, "as the economy continues to expand." 3. OE medium/wide-base/heavy truck tires: up nearly 200,000 units, or 5%, "New truck demand is expected to rebound in 2014." 4. Replacement passenger tires: up 2 million units, or 1%, because of "continued improvement of economic conditions coupled with lower fuel prices." 5. Replacement LT tires: up 600,000 units, or nearly 2%, "as the economy gains additional momentum." 6. Replacement truck tires: up 300,000 units, or 2%, "as truck tonnage and manufacturing continue to grow." Canadian vs. U.S. tire shipments Canada has one-tenth the number of residents the United States does. It makes sense, then, that tire shipments should follow the same patern. Last year, there were 18. 7 million replacement consumer tires shipped in Canada. Tat compares to nearly 230 million in the U.S. Here is the breakdown in millions, including truck tire shipments: Tire type 2013 Passenger: 15.8 Light truck: 2.9 Truck: 1.7 2012 15.6 2.8 1.6 % change +1.3% +3.5% +6.2% However, there are more winter tire shipments in Canada. An estimated 4.7 million "true" winter tire units (those displaying the mountain snowfake symbol) were Chart 7 2013 CANADIAN REPLACEMENT shipped in 2013, which made up 30% of Canada's CONSUMER TIRE BRAND SHARES total replacement passenger tire units. In the U.S., winter tires made up about 4.6 milPASSENGER TIRE LIGHT TRUCK TIRE lion units, or less than 3% of total units (see Chart (Based on 15.8 million units) (Based on 2.9 million units) 3 on page 26). Brand % of total Brand % of total Te RMA, in its yearly Factbook, includes winter Goodyear 12.5% Goodyear 16.0% tires in the "traction and snow treads" category. Because it is made up of not only winter tires but Michelin 12.0% Michelin 11.0% also tires with "all-terrain and traction treads," the Motomaster 12.0% Motomaster 9.5% number is much higher than Modern Tire Dealer's Bridgestone 8.0% BFGoodrich 9.0% estimate. Michelin North America Inc. has more consumer BFGoodrich 6.0% Bridgestone 8.5% tire market share in Canada than any other brand. Hankook 6.0% Firestone 5.5% With its Michelin, BFGoodrich and Uniroyal brands, Continental 4.0% Yokohama 5.0% the company owns a 20.8% share of the market (see Chart 7). Toyo 4.0% General 4.5% Goodyear Tire & Rubber Co., with Goodyear, Firestone 3.5% Toyo 4.0% Dunlop and Kelly, is second with a 15.2% market General 3.5% Hankook 4.0% share, followed by Bridgestone Canada Inc. which is third at 11.8%. Nexen 3.5% Continental 3.0% Motomaster, a private brand tire owned and sold by Yokohama 3.5% Uniroyal 3.0% Canadian Tire Corp., is fourth with a consumer tire Cooper 3.0% Hercules 2.0% market share of 11.6%. Motomaster is manufactured by Hankook Tire Co. Uniroyal 2.5% Kumho 2.0% Private brand tires ac- Ltd. and Cooper Tire Dunlop 2.0% Pirelli 2.0% count for 16.6% of the & Rubber Co. Hercules 2.0% Dunlop 1.5% replacement consumer Canadian Tire, tire market in Canada. w ith 490 stores Kumho 2.0% Cooper 1.0% across the country, Nokian 1.5% Kelly 1.0% is the largest tire retailer in Canada. It also sells the Delta 1.0% Multi-Mile 1.0% Goodyear, Pirelli, Michelin, Continental, Dunlop, Falken 1.0% Others 6.5% BFGoodrich, Hankook, Cooper, General, Uniroyal and Toyo brands. Numbers are rounded to the Pirelli 1.0% nearest one-half percent except to The largest independent tire dealer group in reach 1% in market share. Others 5.5% Canada is OK Tire Stores Inc. with 285 outlets. ■ 30 MTD January 2014