Michelin sales declined

Michelin's revenue in 2024 decreased by 4.1% to 27.193 billion euros, and sales in physical terms decreased by 5.1%, which was partly due to low demand in the primary equipment segment. Operating profit decreased from 3.572 billion euros in 2023 to 3.378 billion euros in 2024.

In the European market, Michelin reduced supplies of passenger and light truck tires to automakers by 7%, and the company notes that new car sales are affected by factors such as a decrease in purchasing power due to high interest rates, and also, consumers are postponing purchases due to the reduction of subsidies for the purchase of electric vehicles in a number of countries, primarily in Germany. In the truck tire market, supplies fell by 20%.

According to Florent Menegaux, Managing Chairman of Michelin, "the 2024 results were at a good level, despite an especially unstable economic and geopolitical situation".

"In order to maintain competitiveness, we had to make complex decisions on restructuring in Poland, China, Sri Lanka, and France," he added.

Earlier it was announced that the plants in Olsztyn (Poland) and Shenyang (China) will stop producing truck tires and will be converted to produce passenger car tires. In addition, the company is stopping tire production in Cholet (France) and metal reinforcing products for tires at the plants in Shanghai and Vannes (France). In Sri Lanka, the company is selling two plants for the production of diagonal tires and tracks for special equipment to the Indian company Ceat.

Now Michelin is assessing the possible consequences of Donald Trump's tariff policy and plans to increase investments in the USA. At the same time, as emphasized by the company's financial director, Yves Chapot, this does not mean a refusal to invest in Europe.

Last year, Europe accounted for 36% of Michelin's total sales, and North America (including Mexico) accounted for 38.6%.

In 2025, the company expects a small increase in sales, although in the first half of the year, a decline is forecast due to weak demand in the OE sector. Michelin also did not change its forecast for 2026.