The winter tyre market represents 55 million units, 20% of Europe’s replacement market. Half of these high margin products are sold in Germany, and in 2007 the winter tyre market decreased by 15%, by a substantial 30% in the fourth quarter alone.
As a result, winter tyre pricing is reported to be negative, and both manufacturers and dealers retain substantial stock levels in inventory. This situation is of particular concern to Germany’s Continental tyre, for which winter tyres represent approximately 17% of passenger car tyre sales. (Tyres & Accessories/Staffordshire, U.K.)