Passenger Car Tires Market in Germany 2015-2019
About Passenger Car Tire Market in Germany
According to the World Bank, in 2011, Germany had 531 passenger cars per thousand people and had a network of roads measuring 643,702 km (399,978 miles). According to the ACEA, there were 42.93 million cars in use in the country during the same year, indicating the commercial viability of the automotive industry and associated markets in the country.
As the country has mandatory winter tire regulations, vehicles in the country need to use winter tire fitments or snow chains depending on the region. The country has mixed weather, and a considerable difference in temperature is observed during winters. For instance, during winters, the temperature may vary from an annual average of 24 degrees Fahrenheit in Zugspitze to 80 degrees Fahrenheit in South-west Germany. This variation in temperature necessitates different types of tires, including winter tires, which are typically advocated for places that experience temperatures less than 45 degrees Fahrenheit. Some of the prominent local and multinational tire brands in the country include Nokian Tyres, Pirelli, Cooper, Goodyear, and Continental.
Technavio's analysts forecast the passenger car tire market in Germany to grow at a CAGR of 1.85% over the period 2014-2019.
Covered in this Report
This report covers the present scenario and the growth prospects of the passenger car tire market in Germany for the period 2015–2019. The market includes the following segments:
Technavio Announces the Publication of its Research Report – Passenger Car Tires Market in Germany 2015-2019
Technavio recognizes the following companies as the key players in the Passenger Car Tires Market in Germany: Apollo, Bridgestone, Brisa, Continental, Cooper Tire, Debica, Deldo, Falken, Giti Tires, Goodyear, HWA Fong, Interstate Tire, Kumho Tire, Marangoni, Maxxis, Michelin, Nankang Rubber, Nexen, Nokian Tyres, Pirelli, ROSAVA, Sailun, Sumitomo, Toyo, Triangle Group, Vee Rubber and Yokohama rubber
Commenting on the report, an analyst from Technavio’s team said: “Natural rubber prices have been declining since 2011 and were at their five-year low, in Tokyo, Shanghai, Indonesia, and Thailand, in December 2014. In 2011, the global demand for natural rubber plunged because of the slowdown in the global economy and the euro crisis, leading to a fall in prices. The demand for natural rubber further weakened with the fall in prices of crude oil, the key raw material for synthetic rubber, which is a substitute for natural rubber. The fall in synthetic rubber prices and the growth in global production of natural rubber lead to a surplus, leading to the further decline of natural rubber prices. This fall in price of synthetic and natural rubber is set to benefit those that use them as raw material, provided that the demand for the end product does not fall. The chief beneficiaries, without doubt, are tire vendors, such as Bridgestone, MRF, Ceat, Goodyear, Sumitomo, and Michelin, as they consume about 70% of the global natural rubber production. The profit margins of the tire vendors have surged since 2011, the year when the prices started dipping. However, tire vendors are expected to pass the savings to consumers.”
According to the report, despite the crude oil supply being much higher than demand, OPEC, the world's largest oil cartel, has not cut production, which led to a rapid fall in oil prices. Crude oil prices have tumbled as low as $50 per barrel. The fuel prices, currently, are at their lowest in years. This fall in fuel prices has lead to an increase in on-road and off-road driving. With increased driving, the passenger car tires, which have an average service life of 37,500 miles in Germany, are expected to wear out sooner, thus leading to a steady need for the replacement of worn-out tires. With higher demand for the replacement of worn-out tires, the growth rate of the passenger car tires market in Germany is expected to rise.
Further, the report states that retreading of tires is affecting replacement tire market to a great extent.
Apollo, Bridgestone, Brisa, Continental, Cooper Tire, Debica, Deldo, Falken, Giti Tires, Goodyear, HWA Fong, Interstate Tire, Kumho Tire, Marangoni, Maxxis, Michelin, Nankang Rubber, Nexen, Nokian Tyres, Pirelli, ROSAVA, Sailun, Sumitomo, Toyo, Triangle Group, Vee Rubber, Yokohama rubber