Russian Tire Market 2010
19 april 2011
In 2010, the Russian tire market approached pre-crisis levels. According to data from Goodyear, obtained during the annual market analysis, the growth in demand and the upward trend in the development of the automotive industry gave reason to hope that this year they would finally be achieved.
2008 was an unsuccessful year for tire manufacturers (a decrease in production volumes of 12%), 2009 was almost a disaster (a fall of 26%). But in 2010, the capacity of the Russian market as a whole grew by more than 45%. The market almost reached the 2007 indicator - 15% short, and production - even less - 5%. In 2010, tire production grew by 30% to 37 million units. The growth in demand and the upward trend in the development of the automotive industry, which was actively supported by the state with scrappage programs and preferential car loans, contributed to this.
Graph 1. Dynamics of tire production in Russia, 2007-2010.
The growth in tire production contributed to an increase in raw material consumption. In 2010, the purchase of technical carbon increased by 53% (about 340 thousand tons), and synthetic rubber - by 50% (to 565 thousand tons). According to the forecasts of the analytical group "Chem-Expert", in 2011, the consumption of SR will continue to grow due to the growth in tire production and RTI, as well as the replacement of more expensive NK with synthetic rubber.
Data from DISCOVERY Research Group showed that the total import of tires in 2010 increased by 31.9% (to 15.5 million tires), which in value terms exceeded the previous year by 42.9%. The top five importing countries were Japan, Korea, France, the USA, and Germany.
Over 12 months of 2010, more than 9.5 million tires were exported from Russia, which is 12.4% more than in the same period in 2009. In value terms, this brought in almost $100 million more revenue compared to the previous year (from $558.5 million in 2009 to $654.5 million in 2010). The main export countries in 2010 were Finland, France, Germany, and Italy.
Passenger Car Tire Market
In terms of individual product groups, the largest increase in the market was observed in the passenger car tire segment. According to the results of 2010, its volume in physical terms exceeded 31.2 million units.
The production of passenger car tires in Russia in 2010 compared to the previous year increased by 45.37% in the first half of the year (from 7,805.3 thousand units in 2009 to 11,346.5 thousand units in 2010) and by 19.48% in the second half of 2010 (from 11,434.1 thousand units to 13,661.5 thousand units).
Graph 2. Production of passenger car tires in Russia, 2009-2010.
The import of passenger car tires to Russia in 2010 amounted to 12,316.1 thousand units, which indicates that the volume of products imported by foreign consumers increased by 23.2% compared to 2009.
Graph 3. Import of passenger car tires, 2009-2010.
Compared to 2009, when the volume of passenger car tire exports in the Russian Federation amounted to 2,414 thousand units, export shipments in 2010 grew by 19.88% - 7,442.8 thousand tires.
Graph 4. Export of passenger car tires, 2009-2010.
Light Truck Tire Market
In the light truck tire segment, as well as in the passenger car segment, a steady increase was observed throughout 2010. Thus, the production of light truck tires compared to the previous year grew by 18.8% - to 3,568.8 thousand units.
Graph 5. Production of light truck tires, 2009-2010.
The total volume of the light truck tire market in the previous year amounted to 4,064.9 thousand units.
The import of tires for light commercial vehicles in 2010 showed quarterly growth compared to 2009 and eventually amounted to 717.2 thousand units.
Graph 6. Import of light truck tires, 2009-2010.
In contrast to exports, the indicators of which in 2010 were slightly lower than in 2009. The total export of light truck tires decreased by 36.81%, amounting to 328.6 thousand units.
Graph 7. Export of light truck tires, 2009-2010.
Truck Tire Market
Starting from the end of 2009, the situation on the truck tire market in Russia continues to recover. According to DISCOVERY Research Group, in 2010, 4,853.5 thousand truck tires were produced (for comparison, production in 2009 amounted to 4,131 thousand units).
Graph 8. Production of truck tires in Russia, 2009-2010.
The total volume of the truck tire market in 2010 significantly increased compared to the previous year: from 4,323.8 thousand units to 6,233.9 thousand units. This was mainly due to import supplies. Thus, the volume of imports in 2010 grew by more than 120%, amounting to 2,126.6 thousand tires.
Graph 9. Import of truck tires, 2009-2010.
The situation was completely different in exports. In 2010, the volume of truck tire exports decreased quarterly, and by the end of four quarters, it amounted to 1,264.5 thousand units, which is 1.07% less than the indicators of the previous year.
Graph 10. Export of truck tires, 2009-2010.
Forecasts and Prospects
According to the results of January 2011, the Russian tire market expanded. This was made possible by the growth in consumption of domestic and foreign-produced tires. In particular, the production of passenger cars increased 2.3 times compared to the same period last year and amounted to 99.7 thousand units. The production of trucks and buses grew 2.8 times (8 thousand units) and five times (1.4 thousand units), respectively.
"We expect that the dynamic growth of the market in 2010 will continue in 2011," said Alexey Platov, Sales Director of Goodyear Russia. "According to our forecasts, the passenger car tire market may grow by approximately 25-30%. The growth of the truck tire market for medium and heavy trucks is expected to be more moderate and will not exceed 6%, but will depend on a number of factors."
It is interesting that the share of the primary equipment market in the total Russian tire consumption is still insignificant (about 13%). The secondary market will remain the main channel for tire sales in the country.
According to the forecasts of the analysts of "Chem-Courier", the prices of raw materials will continue to grow in the near future. This will lead to another increase in the cost of tires. In April, the expected increase in the cost of domestically produced tires compared to March will be 4-12%. The maximum increase will be observed in truck and agricultural tires. The prices of imported tires will be 10-30% higher than the indicators of the same period last year.
About Goodyear
Goodyear is one of the world's largest tire manufacturers. The company, whose headquarters is located in Akron (Ohio), produces its products at 56 facilities located in 22 countries around the world. The company has offices in most countries around the world. The total number of employees of the company worldwide is about 72,000 people.
Goodyear's new technologies have been setting industry standards for over 100 years. Goodyear specialists were the first to invent the innovative safe driving technology known as RunOnFlat, which allows drivers to continue driving on a punctured tire. Goodyear is the world's largest manufacturer of tires with RunOnFlat technology, which is used by BMW, award-winning Mini, Mercedes-Benz, Opel, and other brands. In the near future, new Goodyear RunOnFlat developments will appear, as the company's designers are working on more than 150 projects with the world's leading automakers.
You can find more information about Goodyear and its products at www.goodyear.ru.
2008 was an unsuccessful year for tire manufacturers (a decrease in production volumes of 12%), 2009 was almost a disaster (a fall of 26%). But in 2010, the capacity of the Russian market as a whole grew by more than 45%. The market almost reached the 2007 indicator - 15% short, and production - even less - 5%. In 2010, tire production grew by 30% to 37 million units. The growth in demand and the upward trend in the development of the automotive industry, which was actively supported by the state with scrappage programs and preferential car loans, contributed to this.
Graph 1. Dynamics of tire production in Russia, 2007-2010.
The growth in tire production contributed to an increase in raw material consumption. In 2010, the purchase of technical carbon increased by 53% (about 340 thousand tons), and synthetic rubber - by 50% (to 565 thousand tons). According to the forecasts of the analytical group "Chem-Expert", in 2011, the consumption of SR will continue to grow due to the growth in tire production and RTI, as well as the replacement of more expensive NK with synthetic rubber.
Data from DISCOVERY Research Group showed that the total import of tires in 2010 increased by 31.9% (to 15.5 million tires), which in value terms exceeded the previous year by 42.9%. The top five importing countries were Japan, Korea, France, the USA, and Germany.
Over 12 months of 2010, more than 9.5 million tires were exported from Russia, which is 12.4% more than in the same period in 2009. In value terms, this brought in almost $100 million more revenue compared to the previous year (from $558.5 million in 2009 to $654.5 million in 2010). The main export countries in 2010 were Finland, France, Germany, and Italy.
Passenger Car Tire Market
In terms of individual product groups, the largest increase in the market was observed in the passenger car tire segment. According to the results of 2010, its volume in physical terms exceeded 31.2 million units.
The production of passenger car tires in Russia in 2010 compared to the previous year increased by 45.37% in the first half of the year (from 7,805.3 thousand units in 2009 to 11,346.5 thousand units in 2010) and by 19.48% in the second half of 2010 (from 11,434.1 thousand units to 13,661.5 thousand units).
Graph 2. Production of passenger car tires in Russia, 2009-2010.
The import of passenger car tires to Russia in 2010 amounted to 12,316.1 thousand units, which indicates that the volume of products imported by foreign consumers increased by 23.2% compared to 2009.
Graph 3. Import of passenger car tires, 2009-2010.
Compared to 2009, when the volume of passenger car tire exports in the Russian Federation amounted to 2,414 thousand units, export shipments in 2010 grew by 19.88% - 7,442.8 thousand tires.
Graph 4. Export of passenger car tires, 2009-2010.
Light Truck Tire Market
In the light truck tire segment, as well as in the passenger car segment, a steady increase was observed throughout 2010. Thus, the production of light truck tires compared to the previous year grew by 18.8% - to 3,568.8 thousand units.
Graph 5. Production of light truck tires, 2009-2010.
The total volume of the light truck tire market in the previous year amounted to 4,064.9 thousand units.
The import of tires for light commercial vehicles in 2010 showed quarterly growth compared to 2009 and eventually amounted to 717.2 thousand units.
Graph 6. Import of light truck tires, 2009-2010.
In contrast to exports, the indicators of which in 2010 were slightly lower than in 2009. The total export of light truck tires decreased by 36.81%, amounting to 328.6 thousand units.
Graph 7. Export of light truck tires, 2009-2010.
Truck Tire Market
Starting from the end of 2009, the situation on the truck tire market in Russia continues to recover. According to DISCOVERY Research Group, in 2010, 4,853.5 thousand truck tires were produced (for comparison, production in 2009 amounted to 4,131 thousand units).
Graph 8. Production of truck tires in Russia, 2009-2010.
The total volume of the truck tire market in 2010 significantly increased compared to the previous year: from 4,323.8 thousand units to 6,233.9 thousand units. This was mainly due to import supplies. Thus, the volume of imports in 2010 grew by more than 120%, amounting to 2,126.6 thousand tires.
Graph 9. Import of truck tires, 2009-2010.
The situation was completely different in exports. In 2010, the volume of truck tire exports decreased quarterly, and by the end of four quarters, it amounted to 1,264.5 thousand units, which is 1.07% less than the indicators of the previous year.
Graph 10. Export of truck tires, 2009-2010.
Forecasts and Prospects
According to the results of January 2011, the Russian tire market expanded. This was made possible by the growth in consumption of domestic and foreign-produced tires. In particular, the production of passenger cars increased 2.3 times compared to the same period last year and amounted to 99.7 thousand units. The production of trucks and buses grew 2.8 times (8 thousand units) and five times (1.4 thousand units), respectively.
"We expect that the dynamic growth of the market in 2010 will continue in 2011," said Alexey Platov, Sales Director of Goodyear Russia. "According to our forecasts, the passenger car tire market may grow by approximately 25-30%. The growth of the truck tire market for medium and heavy trucks is expected to be more moderate and will not exceed 6%, but will depend on a number of factors."
It is interesting that the share of the primary equipment market in the total Russian tire consumption is still insignificant (about 13%). The secondary market will remain the main channel for tire sales in the country.
According to the forecasts of the analysts of "Chem-Courier", the prices of raw materials will continue to grow in the near future. This will lead to another increase in the cost of tires. In April, the expected increase in the cost of domestically produced tires compared to March will be 4-12%. The maximum increase will be observed in truck and agricultural tires. The prices of imported tires will be 10-30% higher than the indicators of the same period last year.
About Goodyear
Goodyear is one of the world's largest tire manufacturers. The company, whose headquarters is located in Akron (Ohio), produces its products at 56 facilities located in 22 countries around the world. The company has offices in most countries around the world. The total number of employees of the company worldwide is about 72,000 people.
Goodyear's new technologies have been setting industry standards for over 100 years. Goodyear specialists were the first to invent the innovative safe driving technology known as RunOnFlat, which allows drivers to continue driving on a punctured tire. Goodyear is the world's largest manufacturer of tires with RunOnFlat technology, which is used by BMW, award-winning Mini, Mercedes-Benz, Opel, and other brands. In the near future, new Goodyear RunOnFlat developments will appear, as the company's designers are working on more than 150 projects with the world's leading automakers.
You can find more information about Goodyear and its products at www.goodyear.ru.