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Global market review of 

automotive tyres – forecasts 

to 2014 

2008 edition

Page i 

Global market review of automotive 

tyres – forecasts to 2014 

2008 edition 

July 2008 

by Matthew Beecham 

Published by 

Aroq Limited 

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United Kingdom 

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Web: www.just-auto.com 

Registered in England no: 4307068 

© 2008 All content copyright Aroq Ltd. All rights reserved.

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Page iv 

Contents 

Contents 

Single-user licence edition............................................................................................................. ii 

Copyright statement.................................................................................................................. ii 

Incredible ROI for your budget – single and multi-user licences............................................... ii 

just-auto.com membership........................................................................................................iii 

Contents.......................................................................................................................................... iv 

List of figures ................................................................................................................................. vi 

List of tables .................................................................................................................................. vii 

Preface ............................................................................................................................................ ix 

Research methodology ............................................................................................................ix 

Report coverage....................................................................................................................... ix 

The author................................................................................................................................. x 

Chapter 1 Introduction.................................................................................................................... 1 

Chapter 2 The market ..................................................................................................................... 2 

Market trends ............................................................................................................................ 2 

Market players........................................................................................................................... 4 

Bridgestone ...................................................................................................................... 4 

Q&A with Bridgestone................................................................................................ 4 

Continental ....................................................................................................................... 6 

Cooper Tire & Rubber ...................................................................................................... 6 

Goodyear.......................................................................................................................... 7 

Hankook Tire ....................................................................................................................7 

Kumho Tires .....................................................................................................................8 

Michelin ............................................................................................................................ 8 

Pirelli................................................................................................................................. 9 

Sumitomo Rubber Industries ............................................................................................ 9 

Toyo Tire & Rubber Co Ltd............................................................................................... 9 

Yokohama Rubber............................................................................................................ 9 

Emerging markets................................................................................................................... 13 

China .............................................................................................................................. 14 

Hungary .......................................................................................................................... 16 

India................................................................................................................................ 16 

Indonesia ........................................................................................................................ 16 

Kazakhstan.....................................................................................................................17 

Mexico ............................................................................................................................ 17 

Nigeria ............................................................................................................................ 17 

Poland ............................................................................................................................ 18 

Romania .........................................................................................................................18 

South Africa ....................................................................................................................18 


Page v 

Contents 

Thailand.......................................................................................................................... 19 

Vietnam .......................................................................................................................... 20 

Investments in Western Europe.............................................................................................. 20 

Investments in North America................................................................................................. 21 

Investments in Asia................................................................................................................. 22 

Market shares ......................................................................................................................... 23 

World .............................................................................................................................. 23 

European markets .......................................................................................................... 24 

North American markets................................................................................................. 26 

Asian markets................................................................................................................. 27 

Market size.............................................................................................................................. 29 

Market forecasts...................................................................................................................... 31 

Chapter 3 Technical review.......................................................................................................... 38 

Defining the elements ............................................................................................................. 38 

Latest innovations ................................................................................................................... 39 

Q&A with Goodyear ................................................................................................. 40 

Q&A with Continental............................................................................................... 47 

Tomorrow’s tyres..................................................................................................................... 51 

Chapter 4 Manufacturers.............................................................................................................. 53 

Amerityre................................................................................................................................. 53 

Bridgestone............................................................................................................................. 55 

Continental Corp ..................................................................................................................... 57 

Cooper Tire & Rubber............................................................................................................. 61 

Goodyear ................................................................................................................................ 62 

Hankook Tire........................................................................................................................... 71 

Kumho Tires............................................................................................................................ 73 

Michelin................................................................................................................................... 74 

Pirelli ....................................................................................................................................... 77 

Sumitomo Rubber Industries .................................................................................................. 79 

Toyo Tire & Rubber Co Ltd ..................................................................................................... 80 

Yokohama Rubber .................................................................................................................. 82 

Appendix 1 Glossary of terms ..................................................................................................... 83 

Appendix 2 Tyre speed rating symbols ...................................................................................... 85 


Page vi 

List of figures 

List of figures 

Figure 1: Manufacturer shares of global tyre market, 2007 (% of market value) ............................ 23 

Figure 2: European market shares for OE and replacement tyres for passenger cars and light 

trucks, 2007 (% of volume)....................................................................................... 25 

Figure 3: European market shares for OE and replacement tyres for medium- and heavy-duty 


Figure 4: North American market shares for OE and replacement tyres for passenger cars and 

light trucks, 2007 (% of volume) ............................................................................... 26 

Figure 5: North American market shares for OE and replacement tyres for medium and heavy-duty 


Figure 6: Chinese market shares for OE and replacement tyres for passenger cars and light trucks, 

2007, % of volume.................................................................................................... 28 

Figure 7: Korean OE tyre market shares, 2007 (% of volume) ....................................................... 29 

Figure 8: Korean replacement tyre market shares, 2007 (% of volume) ........................................ 29 

Figure 9: World market shares for OE tyres for passenger cars and light truck applications by 

geographical region, 2007 (% of volume)................................................................. 30 

Figure 10: World market shares for OE tyres for medium- and heavy-duty truck applications by 

geographical region, 2007 (% of volume)................................................................. 30 

Figure 11: Continental AG’s passenger and light trucks tyres sales by region, 2007 (% of net 

sales) ........................................................................................................................ 58 

Figure 12: Continental AG’s commercial vehicle tyres sales by region, 2007 (% of net sales) ...... 59 


Page vii 

List of tables 


Table 1: Bridgestone’s sales by geographical region, 2003-2007 (% of net sales) ........................ 10 

Table 2: Goodyear’s sales by geographical region, 2003-2007 (% of net sales)............................ 10 

Table 3: Michelin’s sales by geographical region, 2003-2007 (% of net sales) .............................. 11 

Table 4: Cooper Tire & Rubber’s sales by geographical region, 2003-2007 (% of net sales) ........ 11 

Table 5: Hankook’s sales by geographical region, 2003-2006 (% of net sales) ............................. 11 

Table 6: Kumho’s sales by geographical region, 2003-2007 (% of net sales) ................................ 12 

Table 7: Pirelli’s sales by geographical region, 2004-2007 (% of net sales)................................... 12 

Table 8: Toyo Tire & Rubber’s sales by geographical region, 2003-2007 (% of net sales) ............ 12 

Table 9: Yokohama’s sales by geographical region, 2003-2007 (% of net sales) .......................... 13 

Table 10: Manufacturer shares of global tyre market 1997-2007 (% of market value) ................... 24 

Table 11: World light vehicle tyre sales, split by OE and replacement units, by region, 2004-2014 

(m units).................................................................................................................... 32 

Table 12: European Union light vehicle tyre replacement units (by country), 2004-2014 (m units) 34 

Table 13: World medium- and heavy-duty truck tyre sales, split by OE and replacement units, by 

region, 2004-2014 (m units) ..................................................................................... 35 

Table 14: World tyre sales (all applications) split by OE and replacement units, by region, 2004- 

2014 (m units)........................................................................................................... 36 

Table 15: Amerityre’s Arcus tyre compared with run-flat tyres........................................................ 54 

Table 16: Bridgestone’s tyre operations worldwide, 2008............................................................... 55 

Table 17: Goodyear’s tyre sales by operating segment, 2002-2007 (m units) ............................... 63 

Table 18: Goodyear’s worldwide tyre sales, OE and replacement, 2003-2007 (m units) ............... 64 

Table 19: Goodyear’s North American Tire sales, OE and replacement, 2003-2007 (m units)...... 64 

Table 20: Goodyear’s European Union Tire sales, OE and replacement, 2003-2007 (m units)..... 65 

Table 21: Goodyear’s Eastern Europe Tire sales, OE and replacement, 2003-2007 (m units)...... 65 

Table 22: Goodyear’s Latin American Tire sales, OE and replacement, 2003-2007 m units) ........ 66 


Page viii 


Table 23: Goodyear’s Asia Pacific Tire sales, OE and replacement, 2003-2007 (m tyres) ............ 66 

Table 24: Goodyear’s strategic business units, 2008 ..................................................................... 67 

Table 25: Goodyear’s tyre-related facilities by country, 2008 ......................................................... 68 

Table 26: Hankook Tire production facilities worldwide, 2008 ........................................................ 72 

Table 27: Michelin’s production sites worldwide, 2008 ................................................................... 75 

Table 28: Pirelli tyre plants worldwide, 2008...................................................................................77 

Table 29: Sumitomo Rubber Industries’ net sales and operating income, 2006 and 2007 (JPYm) 80 

Table 30: Toyo Tire & Rubber Co Ltd’s sales by business segment, 1998-2007 (JPYm) .............. 81 

Table 31: The Yokohama Tire Company Ltd’s tyre-related facilities in Japan, 2008...................... 82 

Table 32: Tyre speed rating symbols (mph/km/h)........................................................................... 85 


Page ix 

Preface 

Preface 

Research methodology 

This report is intended to provide an overview of the road tyre industry, 

providing top-level market fitment, volume and value forecasts through 2014. 

Our forecasts are not extrapolative but dependent on the underlying drivers of 

supply and demand. Our forecasts are largely based on interviews with the 

author’s extensive international network of industry contacts. This allows us to 

consider and explain the meaning and implications of industry events, rather 

than offer simple description based on incomplete data. 

Our approach is divided into two distinct methodologies: 

○ qualitative interviews – these are generally opinion-based, which aim 

to build knowledge about future tyre market trends and company 

strategies; and 

○ quantitative interviews – typically fact-based, focused on establishing 

market values, shares, and volumes. 

Our research typically concentrates on applications for light vehicles which 

include all cars, light trucks and the various cross-over vehicle styles such as 

sports utility vehicles and people carriers. These vehicles collectively account 

for about 96% of the global vehicle build. 

Our market forecasts are set out by region, i.e. the European Union, Eastern 

Europe and Russia, North America, Asia, Africa, South America, Middle East 

and the Gulf, and the rest of the world. For the purposes of this report, the 

European Union includes Austria, Belgium, Denmark, Finland, France, 

Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, 

Switzerland, Sweden and the UK. 

Report coverage 

In this, the fifth edition of this report, just-auto reviews the key market drivers 

for road tyres, and updates the market analysis. Following our market overview 

in Chapter 1, just-auto’s product fitment forecasts in Chapter 2 predict in some 

detail how the OE and replacement market for passenger car, light truck, 

medium- and heavy-duty truck tyre market will evolve in the European Union; 


Page x 

Preface 

Eastern Europe and Russia; North America; Asia; Africa; South America; 

Middle East and the Gulf; and the rest of the world from 2004 through to 2014. 

This chapter includes exclusive Q&A interviews with senior executives of 

Bridgestone, Continental and Goodyear. An updated review of new product 

developments is presented in Chapter 3, while Chapter 4 provides brief 

profiles of the major manufacturers, namely Bridgestone, Continental, Cooper 

Tire & Rubber, Goodyear, Hankook Tyres, Kumho, Michelin, Pirelli, Sumitomo, 

Toyo Tyres, and Yokohama. 

The author 

Matthew Beecham has more than 15 years’ experience of researching, writing 

and analysing market and technical trends in the global automotive 

components industry. Since 2000, he has served as an associate editor for 

just-auto. In addition to tyres, he authors a range of global auto components’ 

market research reviews, including batteries, braking systems, coatings, 

clutches, cockpits, driver assistance systems, door modules, electric motors, 

engine cooling systems, exhaust systems, front-end modules, fuel injection, 

fuel tanks, glazing systems, ignitions, interiors, lighting, mirrors, roof systems, 

shock absorbers, spark plugs, rotating electrics, tyre pressure monitoring 

systems, wheels and wipers. Matthew’s freelance assignments have included 

working for AT Kearney, McKinsey, Kuwait Institute for Scientific Research, 

Motorsport Industry Association, Motor Industry Research Association and the 

Economist Intelligence Unit. He has also written for magazines including Car 

Graphic (Japan), JAMA (Japan) and Automotive Engineer (UK). He was 

awarded a PhD in automotive technology transfer from Cranfield University. 


Page 1 

Chapter 1 Introduction 

Chapter 1 Introduction 

Although only one-quarter of road tyres are specified and bought by the 

vehiclemakers, this segment of the market is significant as it drives technical 

development and has a major influence over the aftermarket. Indeed, the 

popularity of sports utility vehicles (SUVs), minivans and cross-over vehicles 

has prompted manufacturers to redesign their tyres. In terms of innovation, the 

accent remains on improving tyre dimensions, weight, rolling resistance, noise, 

and fuel efficiency. Interest in run-flat tyres is another major focus of research 

and development. In an exclusive interview with just-auto, Franco Annunziatto, 

managing director of Bridgestone’s technical centre in Rome, told us: “Car 

manufacturers continually improve their technologies, and we as tyre 

manufacturers have to move with them. Current demands are for lower rolling 

resistance tyres, with lower pass by noise, with no reduction in wet grip 

properties, and with adequate riding comfort level.” 


Page 2 

Chapter 2 The market 

Chapter 2 The market 

Market trends 

The tyre market is divided into two sectors: OE and replacement. OE tyres are 

defined as those supplied to vehicle makers to be fitted to new vehicles while 

replacement tyres are those which are fitted subsequently. Car and truck tyres 

are clearly the most widely used types of tyre, based on total value of sales. 

There is a wide range of both car and truck tyres designed to serve different 

purposes. 

Although brands have always played a part in tyre marketing, they have 

assumed much more importance in the last decade with the emergence of 

global players, and the acquisition of a portfolio of existing brands as a result 

of the takeover of other firms. The increasing segmentation of the car market 

has led directly to a much more complex segmentation of the tyre market. 

There has always been a price differentiation, with the luxury vehicles having 

more expensive tyres fitted and, conversely, the smaller utility vehicles fitting 

economy tyres. With the advent of specialist vehicles such as super sports 

cars, sports utility vehicles and minivans, this has led to specialist tyres being 

developed for them, usually at above-average prices. This is particularly the 

case for the OEM market, where the increasing sophistication of vehicle 

design has led to specific tyres being designed for specific vehicles, but it is 

also true of the replacement market. There is a tendency for the OEM brand to 

be specified for replacement tyres for any vehicle, but for some specialist 

vehicles this becomes almost obligatory, as there are very few makes of tyre 

designed for some low-volume vehicles. 

Tomorrow’s tyre market is expected to be led by the ultra high-performance 

(UHP) tyres which offer enhanced driving control, run-flat tyres which ensure 

safe driving even in the event of a flat tyre, and ultra fuel efficiency tyres which 

improve fuel efficiency. In particular, with the rapid growth of the hybrid vehicle 

market, the tyre industry has recently been concentrating on developing fuel 

efficient products. 

Other factors impacting on tyre design include increased chassis development. 

In addition, the larger number of car segments have led to an increase in the 


Page 38 

Chapter 3 Technical review 

Chapter 3 Technical review 

Defining the elements 

Tyres remain a key technology within chassis engineering. Quite apart from 

the fact that vehicle grip and handling behaviour ultimately depends entirely on 

the physics and mechanics of what happens within the four tyre contact 

patches, the tyres also make significant contributions towards determining ride 

comfort (since the tyre contributes up to xx% of the total spring rate), internal 

and external vehicle noise, and economy. 

An important distinction in car and truck tyres is made between bias tyre 

construction and radial tyre construction. Radial-ply tyres have long since 

become the norm for light-duty vehicle use. Bias-ply tyres are now only fitted to 

motorcycles, bicycles, excavating machines and industrial and agricultural 

machines. Michelin first introduced steel-belted radial tyres in Europe in 1948. 

Radial tyres are so named because the ply cords radiate at a xx degree angle 

from the wheel rim, and the casing is strengthened by a belt of steel fabric that 

runs around the circumference of the tyre. In radial tyres, the ply cords are 

made of nylon, rayon or polyester. The belt-over-wrap of a radial tyre uses less 

tread distortion under load and more sidewall distortion. The advantages of 

radial tyres include longer tread life, better steering characteristics and less 

rolling resistance, which increases fuel consumption. On the other hand, 

radials have a harder riding quality, and since they are technologically more 

complex than bias-ply tyres, they are about xx% more expensive to make 

when volumes are comparable. Because of their construction, radial tyres 

require a different suspension system from that used by cars designed for 

bias-ply tyres. 

Tyres are classified according to the respective requirements of various 

vehicle types and sizes, and operating conditions. The essential data – tyre 

dimensions, load ratings, specified inflation pressures and authorised speeds – 

are standardised in the interests of interchangeability in the following seven 

tyre categories: 

○ engine-driven, two-wheeled vehicles – motorcycles and motor 

scooters; 

○ passenger cars; 

○ light-duty trucks – including delivery trucks; 


Page 53 

Chapter 4 Manufacturers 

Chapter 4 Manufacturers 

Amerityre 

Amerityre Corp was founded in 1995 as American Tire Corporation. The first 

products developed and sold by the new company were polyurethane foam 

tyres based on the company’s proprietary chemical formulation technology. 

Since the tyres were fabricated using a closed-cell polyurethane material, they 

could never go flat. Thus, the company has registered the Flatfree trade mark 

for this product. These tyres are currently fitted to a variety of applications, 

including bicycles, wheelchairs, lawn and garden products, and golf carts. In 

1999, the company changed its name to Amerityre Corp and continued 

development of its Flatfree technology. 

In 2001, Amerityre developed polyurethane elastomer pneumatic passenger 

car tyres that were able to be driven for xx miles without air pressure and with 

several holes in the sidewalls. These tyres did not incorporate conventional 

tyre reinforcement materials, such as beads, belts and plies. Buoyed by this 

innovation, the company’s engineers then developed a system for integrating 

these reinforcement materials in its Elastothane tyres. This system, dubbed 

the Arcus Run-Flat Tire, is designed to operate at normal air pressure, yet 

continue to perform normally for up to xxx miles without air. These Elastothane 

products include tyre fill, solid tyres, composite tyres and pneumatic passenger 

vehicle tyres. In April 2004, Amerityre completed testing to Federal Motor 

Vehicle Safety Standard (FMVSS) xxx of its so-called Arcus design passenger 

car tyre and in November 2007 completed testing to the new FMVSS xxx 

specification. 

Since completing this testing, the company says it has begun discussions with 

companies that are interested in licensing its technology, providing them with 

sample tyres. The company states: “While companies evaluate sample tyres, 

we will focus on finishing the design and development of the manufacturing 

equipment required to produce the polyurethane road tyre in commercial 

volumes. We are discussing the construction and installation of a pilot 

manufacturing facility capable of demonstrating this production capability with 

potential strategic partners.” 


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