2012 Tire Shipments Unchanged

1.5 Percent Rebound Anticipated In 2013

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C., April 3, 2013 – Tire shipments remained unchanged in 2012 at 284 million total units, according to the Rubber Manufacturers Association (RMA) as a 10 percent increase in OE shipments offset a nearly 2 percent decrease in replacement shipments.

The absence of overall growth can primarily be attributed to a cautious consumer as well as economic uncertainties in both the commercial and consumer sectors of the replacement market.

Nonetheless, there are several positive signs including, a declining unemployment rate, a rebound in housing, and increases in vehicle sales and vehicle miles traveled. These and other macroeconomic factors should result in approximately 288 million total tire shipments in 2013, an increase of approximately 4 million units or nearly 1.5 percent.

Original equipment (OE) tire shipments for both the light vehicle and commercial truck sectors increased 10 percent for 2012 due to increased demand for light vehicles and commercial trucks. A nearly 6 percent growth is forecast for 2013 as new vehicle demand is expected to increase light vehicle sales to more than 15 million.

Replacement tire shipments declined in 2012 to approximately 235 million total units – a nearly 5 million unit decrease, or about 2 percent decline. For 2013, a modest increase of 1 million units is anticipated as small growth is expected in the Gross Domestic Product and the Industrial Production Index for both the consumer and commercial sectors.

RMA’s Tire Market Analysis Committee report for key categories and their respective segments for 2012 and its forecast for 2013 include:

  • Original Equipment (OE) Passenger Tires: Passenger OE tire shipments increased by 12.1 percent to 40 million units in 2012, a 4.3 million unit improvement. This reflects the 1.7 million unit increase in light vehicle sales for 2012, reaching approximately 14.4 million light vehicles. For 2013, light vehicle sales are anticipated to increase another 4.2 percent and crest the 15 million unit mark. As such, 2013 OE passenger shipments are expected to increase more than 6 percent or approximately 2.7 million units.
  • Original Equipment Light Truck (LT) Tires: Light truck OE tires increased 1.5 percent in 2012 to 4.3 million units as domestic vehicle production using LT tires experienced a marginal increase due to soft economic conditions in this sector. This category is forecast to grow by nearly 100,000 units in 2013, or approximately 3 percent.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: A increase in demand for commercial trucks and trailers in 2012 boosted commercial OE tire shipments by 2.6 percent, reaching approximately 5.1 million units. However, demand for new trucks is expected to level off in 2013 and little or no change in the total OE tire units is anticipated.
  • Replacement Passenger Tire: 2012 shipments decreased by 3.5 million units, or 1.8 percent, to 190.9 million units as anticipated demand failed to materialize due to continued soft economic conditions and cautious consumers. For 2013, improving economic conditions, positive signs of jobs added, and growth in vehicle miles traveled will be tempered by spending pressure on consumers. As a result passenger replacement shipments are forecast to increase by a modest 1 million units.
  • Replacement Light Truck Tire: Total 2012 LT replacement shipments was 28.1 million units, a decrease of approximately 500,000 units, or 1.9 percent. A nearly 1 percent growth is forecast for 2013 given the slowly improving economy and signs of improvement in the housing market.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: For 2012, this market declined by 4 percent, or 700,000 units, to 15.8 million units as fleets opt for new equipment and the economy remained sluggish. No increase is forecast for 2013 owing to a sluggish commercial sector.

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The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2012 Tire Shipments Expected to Grow By 1.2 Percent

Slight Downward Revision Given Sluggish Economy

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C., August 20, 2012 – Tire shipments in 2012 are projected to increase by approximately 1.2 percent – just over 3 million units- to 288 million units, according to the Rubber Manufacturers Association (RMA). The modest growth can attributed to the increase in new vehicle sales and a slight increase in vehicle miles traveled.

Original equipment (OE) tire shipments for both the light vehicle and commercial truck markets will be up nearly 16 percent for 2012 as continued pent up demand for both for light vehicles and commercial trucks will add to domestic new vehicle sales and production.

Growth in replacement tire shipments is expected to drop by approximately 2 percent, or nearly 4 million units, to 236 million total units in 2012. Overall the decline is moderated by the mild growth still projected in Gross Domestic Product and the Industrial Production Index for both the consumer and commercial sectors.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2012 include:

  • Original Equipment (OE) Passenger Tires: Passenger OE tire shipments are anticipated to increase by 7 million units, or slightly more than 18 percent, to 42 million units in 2012 as domestic vehicle production is expected to increase. Total light vehicle sales for 2012 were revised to greater than 14 million vehicles, from 12.8 million vehicles sold in 2011. Additionally, improved OE tire shipments for 2012 vs. 2011 are partially attributed to the rebound in vehicle inventory and availability, which was affected by the 2011 Japanese earthquake/tsunami.
  • Original Equipment Light Truck (LT) Tires: A nearly 1 percent increase is anticipated for 2012 as domestic vehicle production using LT tires will experience a small increase tempered by soft economic conditions in this commercial sector. As a result, this category is forecast to be 4.2 million total units.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: Pent up demand for commercial trucks and trailers concurrent with a forecasted 4 percent increase in the Industrial Production Index in 2012 will enable this sector to grow by 12 percent in 2012, or nearly 600,000 units, or 5.5 million units total.
  • Replacement Passenger Tire: Shipments in 2012 are forecasted to decrease by approximately 2 million units, or nearly 1 percent, to 192 million units as pent up demand has failed to materialize. This is attributed to, in-part, softer economic conditions than previously forecasted. Vehicle miles travelled for 2012 has increased, in part due to the mild winter. As a result, an uptick in replacement shipments is forecasted for the second half of 2012.
  • Replacement Light Truck Tire: A decrease of approximately 900,000 units, or 3 percent, is expected for 2012 such that the total LT replacement market will decline to 28 million units. This is a result of 2012 new light truck vehicle sales decreasing demand for replacement tires. However, the decline will be moderated by anticipated stronger second half growth in 2012 given the soft market conditions in the latter part of 2011.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: For 2012, this market is forecasted to decline by approximately 6 percent, about 1 million units, to 15.5 million units as fleets opt for new equipment and the economy remains sluggish.

# # # #

The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2012 Tire Shipments to Grow 2 Percent

2011 Total Tire Shipment Growth 0.2 Percent

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.March 7, 2012 - Tire shipments in 2012 are projected to increase by approximately 2 percent – nearly 6 million units- to 290 million units, according to the Rubber Manufacturers Association (RMA). For 2011, tire shipments showed a slight 0.2 percent decrease to 284 million units. Contributing to the small growth were a 26 percent year-over-year increase in gas prices that affected vehicle miles travelled as well as several global natural disasters that affected vehicle builds and OE shipments.

Original equipment (OE) tire shipments for both the light vehicle and commercial truck markets will make up the bulk of the increase in 2012 as continued pent up demand for both for light vehicles and commercial trucks will add to domestic new vehicle sales and production.

Growth in replacement tire shipments is expected to be less than 1 percent, or approximately 242 million total units in 2012 as higher fuel costs may further affect vehicle miles travelled. Nonetheless, the forecast is for continued overall positive economic conditions for both the consumer and commercial sectors as both the Gross Domestic Product and Industrial Production indicators are expected to show moderate growth.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2011 and 2012 include:

  • Original Equipment (OE) Passenger Tires: Passenger OE tire shipments are anticipated to increase by approximately 3 million units, or nearly 8 percent, to 38.6 million units in 2012 as domestic vehicle production is expected to increase. Total light vehicle sales for 2012 are projected to be greater than 13.5 million vehicles, up from 12.8 million vehicles sold in 2011. OE tire shipments for 2011 came in at 35.7 million units, up nearly 8 percent as domestic auto production continued to increase. Of note were the vehicle inventory and availability issues during 2011 as a result of the Japanese earthquake/tsunami, which disrupted supply chains and impacted OE shipments.
  • Original Equipment Light Truck (LT) Tires: This category experienced a 15.7 percent increase in 2011 to approximately 4.2 million total units due to a 9 percent increase in domestic vehicle builds using LT tires and improved economic conditions respective to the commercial sectors. Little or no growth is anticipated for 2012 as further vehicle domestic production increases will be small. As a result, total shipments are forecast to remain at approximately 4.2 million units.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: Medium OE tire shipments increased by approximately 1.7 million units in 2011, or 55 percent, to nearly 5 million units, reflecting pent up demand for commercial trucks and trailers concurrent with a 4.1 percent increase in the Industrial Production Index. This sector is forecast to continue to grow by approximately 12 percent in 2012, or another nearly 600,000 units as the commercial sector continues to strengthen reflecting economic growth forecasts.
  • Replacement Passenger Tire: Shipments decreased in 2011 by 6.2 million units, or 3.1% percent, to 194.4 million units as vehicle miles travelled fell 1.2 percent. The economy is expected to continue to experience a slow rebound in 2012 commensurate with a small increase in miles driven. As a result, an approximate 1 percent growth rate, or nearly 2 million units, is forecast for 2012. Non-RMA imports decreased nearly 9 percent in 2011 but an approximate 7 percent increase is anticipated for 2012.
  • Replacement Light Truck Tire: LT tire shipments showed a slight decrease of 0.3 percent to 28.6 million units in 2011. The increase in new light truck vehicle sales plus fewer miles travelled contributed to this slight decrease in replacement shipments. Similarly, little or no growth is anticipated in 2012 as miles driven by small commercial vehicle market – mainly “class 3” trucks – as well as a core group of consumers will remain relatively constant.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: This market increased by approximately 700,000 units in 2011 to 16.5 million units, as the commercial sector of the economy grew by nearly 4 percent. For 2012, growth is expected to moderate such that tire shipments will increase by approximately 2 percent, or 400,000 units.

 

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The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for nearly 85 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2011 Tire Shipments to Grow Nearly One Percent

Two Percent Increase Anticipated For 2012

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.December 2, 2011 - The Rubber Manufacturers Association lowered its 2011tire shipment forecast to 287 million total units, which represents a nearly one percent increase or approximately two million units more than 2010. This is a result of downward revisions in year-end economic growth in the U.S. economy.

For 2012, the forecast remains guardedly optimistic as U.S. economic growth is anticipated to remain slow. As such, overall tire shipments are forecasted to increase by more than two percent reaching a total of over 290 million total units. Persistently high fuel costs, a decrease in miles driven by consumers plus moderating growth in the commercial replacement tire sector have led to a restrained outlook.

RMA’s Tire Market Analysis Committee 2011 forecast for key categories include:

  • Original Equipment (OE) Passenger Tires: OE tire shipments were revised slightly lower to approximately 35 million units, a 5.4 percent increase over 2010, as a result of decreased vehicle production related to supply chain disruptions due to the natural disasters in both Japan and Thailand. The forecast for 2012 is for an approximate 13 percent increase, to nearly 40 million OE units, as available credit and attractive vehicle prices are expected to drive vehicle sales.
  • Original Equipment Light Truck (LT) Tires: This category is forecasted to experience a nearly 15 percent increase in 2011 to approximately 4.2 million units due to the shift to larger vehicles as a result of more fuel efficient pickups and improved economic conditions in commercial sectors that utilize light trucks. However, a 7 percent decrease, or approximately 300,000 units for a total of 3.9 million units, is forecasted for 2012. This is a consequence of a trend towards light trucks built on car-based platforms instead of truck-based platforms owing to increased vehicle fuel mileage standards and consumer demand.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The forecast for commercial OE tire shipments was revised upward for 2011 to approximately 54 percent, reaching nearly five million total units. This underscores the pent up demand for commercial trucks and trailers concurrent with a predicted nearly four percent increase in the Industrial Production Index. For 2012, the forecast is for an additional nearly 10 percent increase as pent up demand offsets a slowing economy.
  • Replacement Passenger Tire: The forecast for this category was revised to show a decrease of approximately two percent for 2011 as vehicle miles driven have declined, energy costs remain high, and continued economic uncertainty weighs on the consumer. The decrease represents a drop of approximately four million units for 2011 with total passenger replacement units reaching approximately 196 million units. For 2012, less than one percent growth is forecasted – representing an approximate one million unit increase – as economic growth continues to remain sluggish and vehicle miles driven ticks up slightly.
  • Replacement Light Truck Tire: This category, represented by small commercial vehicle market – mainly “class 3” trucks, was revised downward to an approximate two percent increase in 2011 – a growth of approximately 700,000 units or nearly 29 million total units. The downward revision was primarily attributed to the slower than expected recovery in the light truck category as well as change in light truck platforms to car platforms, which began in 2008. For 2012, no further increase is anticipated as the economy is expected to remain weak.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The forecast for this market will remain strong for 2011 as commercial trucking has grown concurrent with the increase in the Industrial Production Index. As such, the market is anticipated to increase by approximately 1.5 million units in 2011 to nearly 17 million units. For 2012, an additional 800,000 units are anticipated as the IPI is forecasted to continue to grow by over two percent.

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The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2011 Tire Shipments to Grow Nearly Four Percent

OE Markets as Main Contributor

For more information contact:
Dan Zielinski
202-682-4846
dzielinski@rma.org

WASHINGTON, D.C.August 2, 2011 - The Rubber Manufacturers Association revised its 2011 tire shipment forecast upward to approximately 4 percent – nearly 11 million units- to 296 million units.

Original equipment (OE) tire shipments for both the light vehicle and commercial truck markets will add approximately 5 million of the combined total 11 million OE and replacement units increase in 2011 as pent up demand for both for light vehicles and especially commercial trucks continues to drive domestic new vehicle sales and production.

Growth in replacement tire shipments will remain modest in 2011 as persistent high fuel costs and little or no change in the number of miles driven will temper the overall growth rate to a little more than 2 percent, or approximately 251 million total units. However, the forecast still remains guardedly optimistic.

RMA’s Tire Market Analysis Committee 2011 forecast for key categories include:

• Original Equipment (OE) Passenger Tires: OE tire shipments were revised slightly lower to approximately 36 million units, an 8.5 percent increase. This is a result of decreased vehicle production due to the Japanese earthquake/tsunami and its impact on component suppliers. Total light vehicle sales for 2011 are projected to be approximately 13 million vehicles, up from 11.6 million vehicles sold in 2010.

• Original Equipment Light Truck (LT) Tires: This category is forecast to experience an nearly 18 percent increase in 2011 to approximately 4.3 million units due to the shift to larger vehicles as a consequence of pent up demand, buyer incentive programs along with improved economic conditions in commercial sectors that utilize light truck vehicles.

• Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The forecast for medium OE tire shipments was upwardly revised to approximately 47 percent increase in shipments, or about 4.7 million units. This underscores the pent up demand for commercial trucks and trailers concurrent with a predicted greater than 4 percent increase in the Industrial Production Index.

• Replacement Passenger Tire: Growth in this category is anticipated to be just below 1 percent as continued high energy costs, decreases in non-essential driving, and continued economic uncertainties weigh on the consumer. The nearly 1 percent growth is forecast to result in less than a 2 million unit increase for 2011 with total passenger replacement units reaching approximately 202 million units.

• Replacement Light Truck Tire: This category, represented by small commercial vehicle market – mainly “class 3” trucks, is expected to increase by more than 2 million units to approximately 31 million units in 2011. This equates to a gain of more than 7 percent and is primarily attributed to the economic recovery in the commercial sector.

• Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The forecast for this market was revised upward as commercial trucking has remained strong concurrent with the predicted 4 percent increase in the Industrial Production Index. As such, the market is anticipated to increase by approximately 2 million units in 2011 to nearly 18 million units.

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The Rubber Manufacturers Association is the national trade association for tire manufacturers that produce tires in the U.S. All RMA press releases are available at www.rma.org.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2011 Tire Shipments to Grow Three Percent

Tire Shipments Grew by More than 25 Million Units in 2010

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.March 22, 2011 - Tire shipments in 2011 are projected to increase by approximately 3 percent – nearly 8 million units- to 293 million units, according to the Rubber Manufacturers Association. Tire shipments increased by 9.7 percent to 285 million units in 2010, marking the onset of the economic recovery.

Original equipment (OE) tire shipments for both the light vehicle and commercial truck markets will make up the bulk of the increase in 2011 as pent up demand for both for light vehicles and commercial trucks continues to drive domestic new vehicle sales and production.

Growth in replacement tire shipments will be modest in 2011 as higher fuel costs and reduction in non-essential driving will restrain the overall growth rate to less than 2 percent, or approximately 248 million total units. Nonetheless, the forecast is for continued overall positive economic conditions for both the consumer and commercial sectors as both the Gross Domestic Product and Industrial Production indicators are forecast for above trend growth.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2010 and 2011 include:

  • Original Equipment (OE) Passenger Tires: Passenger OE tire shipments are anticipated to increase by approximately 4 million units, or nearly 12 percent, to 36.9 million units in 2011 as domestic vehicle production continues to increase in response to higher vehicle sales owing to incentive programs, greater credit availability and low interest rates. Total light vehicle sales for 2011 are projected to be approximately 13 million vehicles, up from 11.6 million vehicles sold in 2010. OE tire shipments for 2010 came in at 33.1 million units, up nearly 35 percent as domestic auto production ramped up from near historic lows in 2009.
  • Original Equipment Light Truck (LT) Tires: This category experienced a 29.6 percent increase in 2010 to 3.6 million units due to improved economic conditions respective to the commercial sectors, which utilize light truck vehicles. Little or no growth is anticipated for 2011 as no further vehicle production increases are anticipated for vehicles that utilize LT tire fitments. As a result, total shipments are forecast to remain at approximately 3.6 million units.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: Medium OE tire shipments saw a 31.8 percent jump in shipments to 3.2 million units reflecting pent up demand for commercial trucks and trailers concurrent with a significant increase in the Industrial Production Index for 2010. This sector is forecast to continue to grow by approximately 30 percent in 2011, or another nearly 1 million units as the commercial sector continues to strengthen and reflect economic growth forecasts.
  • Replacement Passenger Tire: Shipments for this category increased in 2010 by 11.1 million units, or 5.8 percent, to 200.6 million units as the economy rebounded and miles travelled increased. However, growth will be tempered in 2011 as higher energy costs, a decrease in non-essential driving, and continued economic uncertainties weigh on the consumer. As a result, a less than 2 percent increase, or nearly 3 million units, is forecast for 2011. Non-RMA imports increased nearly 9 percent in 2010 with another approximate 4 percent increase anticipated for 2011.
  • Replacement Light Truck Tire: The onset of the economic recovery enabled LT tire shipments to increase by 1.2 million units to 28.7 million units in 2010, a gain of 4.4 percent. However, no further growth is anticipated in 2011 in that this segment represents the small commercial vehicle market – mainly “class 3” trucks – as well as a core group of consumers, where the number of vehicles in use and miles driven will remain relatively constant.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: This market increased by approximately 2.9 million units in 2010 to 15.8 million units, as the commercial sector of the economy grew by nearly 6 percent after the nearly 10 percent slump in 2009. For 2011, further growth is expected to moderate such that tire shipments will increase by approximately 5 percent, or 800,000 units.

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The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

2010 U.S. Tire Shipments to Post Nine Percent Increase

Growth to Moderate in 2011

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.December 1, 2010 - Tire shipments are projected to increase by more than 9 percent in 2010 due to sharp increases in original equipment manufacturer (OEM) passenger and commercial truck tires as well as increases in passenger and commercial truck replacement shipments, according to the Rubber Manufacturers Association.

Total 2010 tire shipments are projected to increase by approximately 24 million units to 284 million units – a 9 percent increase compared to 2009. Nearly half this increase is attributed to the large increases in OE tire shipments, owing to the resumption of domestic vehicle manufacturing as well as an increase in light vehicle sales driven by manufacturer’s incentive programs and low auto loan interest rates during the 2010 calendar year.

Replacement shipments will also experience significant growth in 2010 as a result of increases in vehicle miles travelled, stable energy prices, longer vehicle life and overall positive domestic economic conditions for both the consumer and commercial sectors.

An additional two percent growth in tire shipments is forecast for 2011, reaching nearly 290 million units as economic uncertainty will restrain growth for overall tire shipments.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2010 and 2011 include:

  • Original Equipment (OE) Passenger Tires: Passenger OE tire shipments are anticipated to increase by approximately 11 million units, or nearly 44 percent, in 2010 as domestic vehicle production resumes and consumers take advantage of incentive programs and low interest rates. New vehicles sold in the U.S. are projected to increase by 6 percent in 2011 due to continued improvement in economic conditions.
  • Original Equipment Light Truck (LT) Tires: This category will experience an approximate 31 percent increase, or 900,000 units, in 2010 to nearly 3.7 million units due to improved economic conditions respective to the commercial sectors which utilize light truck vehicles. Little or no growth is anticipated for 2011 as no increase is anticipated in domestic vehicle production.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: A nearly 24 percent increase to approximately 3 million units is anticipated for 2010 – an increase of approximately 600,000 units – reflecting a significant increase in the Industrial Production Index for 2010 in combination with pent up demand for new vehicles. This sector is expected to continue to rebound in 2011 with OE tire shipments projected to gain an approximate 750,000 units.
  • Replacement Passenger Tire: Shipments for this category are projected to increase approximately 9 million units in 2010 to nearly 199 million units, representing a growth rate of approximately 5 percent. However, growth in 2011 will be tempered as continued economic uncertainties for the consumer will result in a less than a 2 percent increase, or nearly 3 million units. Respective to imports, the imposition of a three year Chinese import tariff in September 2009 decreased Chinese imports but effectively increased imports from other Pacific Rim countries such that non-RMA imports are forecast to increase nearly 6 percent in 2010. Additional increases in imports are anticipated for 2011 growing another approximate 5 percent.
  • Replacement Light Truck Tire: The onset of the economic recovery has also improved the outlook for LT tire shipments with shipments forecasted to increase by 300,000 units to approximately 28 million units total, a gain of nearly 1 percent. Little or no increase is anticipated in 2011 in keeping with commercial economic forecasts. This segment represents the small commercial vehicle market – mainly “class 3” trucks – as well as a core group of consumers.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The market is anticipated to increase by approximately 2.6 million units in 2010 to nearly 15.5 million units. Given the uneven economic rebound forecast for 2011, this market is expected to increase by approximately 600,000 units to nearly 16 million units.

# # # #

The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2010 Tire Shipments to Increase Eight Percent

Increases to Passenger Tire Shipments Cited

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.August 9, 2010 - Tire shipments in 2010 are projected to increase by approximately eight percent primarily due to a 38 percent increase in Original Equipment Manufacturer (OEM) passenger tires and a five percent increase in passenger replacement tires, according to the Rubber Manufacturers Association.

Total 2010 tire shipments are projected to increase to 282 million units from last year’s 260 million. The rebound in 2010 shipments would be roughly equal to 2008’s shipment level.

The increase in tire shipments reflects an economy reemerging from the severe economic downturn coupled with the recent turnaround of the domestic automotive manufacturers and a return to established driving habits. However, high unemployment, low consumer confidence and continued depressed home values continue to weigh on the consumer.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2010 include:

  • Original Equipment Passenger Tires:

Large increases in domestic vehicle production as a result of the resumption of auto manufacturer production driven by OEM incentive and financing programs will lead to a nearly 38 percent increase in 2010 shipments to approximately 34 million units. With the economy predicted to stabilize and slowly emerge from the recession in 2010, a rebound in vehicle sales and subsequent vehicle production is anticipated. This will further increase OE tire shipments in 2011 by nearly three million units to the 37 million unit level.

  • Original Equipment Light Truck (LT) Tires:

This category will experience an approximate 13 percent increase, or 400,000 units, in 2010 to nearly 3.2 million units due to stabilizing economic conditions and the subsequent impact on the commercial sectors which utilize light truck vehicles. Despite a continual consumer demand preference for vehicle fitments with p-metric passenger tires in place of LT tires, a nearly 100,000 unit gain is anticipated in OE LT as the economy continues to recover in 2011.

  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:

Given the severe economic conditions in the commercial sector in 2009 depressing OEM truck sales, a nearly 16 percent increase is forecast for 2010 to approximately 2.8 million units. The continued economic rebound and pent up demand for vehicles is projected to result in a net gain of approximately 800,000 units increase in shipments in 2011.

  • Replacement Passenger Tire:

Due to faster recovery in the auto sector from the protracted and deeper economic downturn in 2009, the market will realize a better than expected five percent increase in 2010, or approximately 10 million units, reaching a level of 199 million units. Growth is anticipated to continue in 2011 with the replacement sector estimated to increase by a modest twote million units.

  • Replacement Light Truck Tire:

This segment represents a core group of consumers and the small commercial vehicle market – mainly “class 3” trucks. As such, the extension of the first-time homebuyer’s tax credit provided a temporary boost to the housing/construction industry allowing for a nearly three percent increase in the forecast for replacement LT tire shipments for 2010 reaching the 28 million unit level. No further changes to this level is anticipated in 2011 primarily in line with future changes to the housing industry

  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:

The market will realize an increase of approximately 15 percent, or nearly two million units in 2010 to approximately 15 million units total as a result of the better than expected recovery in the commercial sector. However, given the uneven economic rebound forecast going forward, this market is expected to increase by approximately 600,000 units in 2011.

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The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2010 Tire Shipments to Increase Three Percent

Modest Recovery Anticipated In 2010 For Both Consumer and Commercial Sectors

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.March 12, 2010 - Tire shipments in 2010 are projected to increase by approximately 3 percent or approximately 7 million units to 267 million units, according to the Rubber Manufacturers Association. Total shipments experienced an 8 percent drop in 2009 to 259.7 million units.

The increase in tire shipments reflects the onset of the economic rebound, an increase in vehicle miles traveled, and a slight uptick in auto sales. As a result, this rebound is projected to extend into 2011 reaching approximately 275 million units, as the economic recovery gathers momentum.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2010 include:

  • Original Equipment Passenger Tires:

Passenger OE shipments declined by nearly 35 percent in 2009 to 24.6 million units – a low point for recent history – attributable to the economy, and large vehicle production cuts. For 2010, light vehicle production is forecast to rebound slightly resulting in an approximate 21 percent increase in OE passenger tire shipments to nearly 30 million units.

  • Original Equipment Light Truck (LT) Tires:

Consumer and commercial demand for LT OE tires were less severely impacted by the light vehicle production cuts. As a result shipments declined only 4 percent to 2.79 million units, a 100,000 unit year-over-year drop. For 2010 this category will experience a nearly 10 percent increase to more than 3 million units reflecting a strengthening economy.

  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:

For 2009, this category decreased by 36.9 percent to 2.4 million units, attributable to the continued large economic slowdown in the commercial sector. For 2010, commercial activity is expected to pick up resulting in a nearly 8 percent increase, or approximately 180,000 additional units.

  • Replacement Passenger Tire:

The sluggish economy coupled with consumers looking to extract more miles out of their tires, contributed to a decline of 4.3 million units in 2009, representing a 2.2 percent decrease for a total of 189.5 million units. However this sector is forecast to increase by nearly 1.7 million units in 2010 – or approximately 1 percent as the measured economic recovery gains hold and the number of vehicle miles traveled increases.

  • Replacement Light Truck Tire:

This market segment realized a drop of 6.5 percent, or 1.9 million units, for a total of 27.5 million units in 2009 as soft economic conditions impacted small commercial vehicles. Given that the number of vehicles for this market remains steady, the soft economic conditions and fewer vehicle miles travelled will contribute to another nearly 1 percent decline in replacement LT tire shipments in 2010 to approximately 27.3 million units.

  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:

This market declined to 12.9 million units in 2009, a decrease of nearly 2 million units or 13.2 percent. However, this market will realize an increase of approximately 600,000 units in 2010 as the economy picks up, and more goods are shipped.

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The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for over 90percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2009 Tire Shipments Revised to Drop Sixteen Percent

Sharper Decline In Original Equipment Tires Cited

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.August 10, 2009 - Tire shipments are projected to drop by approximately 16 percent in 2009 mainly as a result of a nearly 45 percent decline in Original Equipment Manufacturer (OEM) passenger tires and almost 43 percent drop in OEM Commercial truck tires, according to the Rubber Manufacturers Association.

Total 2009 tire shipments are projected to decline approximately 45 million units to 237 million units. This level is approximately 84 million units less than the peak of 321 million units in 2000. The decrease in tire shipments reflects the recent struggles of automotive manufacturers, low consumer confidence, high unemployment, and depressed home values.

Vehicle miles travelled seem to have stabilized and domestic economic conditions for both the consumer and commercial sectors appear to have bottomed and are poised for a rebound in 2010. The tire industry is expected to realize a nearly 8 percent growth in 2010 reaching the 260 million unit level.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2009 include:

  • Original Equipment Passenger Tires: Large decreases in domestic vehicle production as a result of auto manufacturer production shutdowns and bankruptcy reorganizations will result in a nearly 46 percent decrease in 2009 shipments to approximately 21 million units. With the economy predicted to emerge from the recession in 2010, a rebound in vehicle sales and subsequent vehicle production is anticipated, which will result in a nearly 11 million increase in OE tire shipments in 2010. Note that this projection does not account for any changes to the auto industry as a result of further federal intervention or consumer incentive programs.
  • Original Equipment Light Truck (LT) Tires: This category will experience an approximate 12 percent decrease, or 400,000 units, in 2009 to nearly 2.6 million units due to slower economic conditions and its impact on the commercial sectors which utilize light truck vehicles. There is continued consumer demand for vehicle fitments with P-Metric passenger tires in place of LT tires and as the economy gradually recovers in 2010, a nearly 100,000 unit gain is anticipated.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: Given the downward revisions in the economic conditions in the commercial sector, a nearly 44 percent decline to approximately 2.2 million units is anticipated for 2009– a decrease of over 1.6 million units. The economic rebound anticipated for 2010 along with pent up demand for vehicles is projected to result in a net gain of approximately 500,000 units increase in shipments.
  • Replacement Passenger Tire: As a result of the protracted economic downturn and the onset of economic recovery pushed closer to 2010, the market will realize another decrease of nearly 9 percent, or approximately 18 million units, reaching a level of 176 million units. Growth is anticipated to resume in 2010 with the replacement sector estimated to increase by approximately 5 million units, or slightly better than 3 percent, in tandem with the projected economic growth in the consumer sector.
  • Replacement Light Truck Tire: Although the number of vehicles for this market remains steady and largely represented by small commercial vehicles, further declines in economic conditions is forecasted to contribute to a nearly 18 percent decline in replacement LT tire shipments in 2009 to the 24 million unit level. An increase of nearly 8 percent is anticipated in 2010 in keeping with commercial economic forecasts.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: The market will realize another decrease of over 3 million units in 2009 to approximately 12 million units as a result of the protracted recovery. Given the uneven economic rebound forecast for 2010, this market is expected to increase by less than 1 million units to nearly 13 million units.

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    The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products.