IRSG exec sees 'decade of opportunity for tire makers'

Crain News Service report

SINGAPORE (March 19, 2013) — As principal guest at the opening of Tyrexpo Asia 2013, the Secretary-General of the International Rubber Study Group (IRSG) has predicted strong global demand for tires through the coming decade.

"Following two years of disappointing economic growth, in response to the European sovereign debt crisis, the weak U.S.A. economic recovery and budget issues, plus the economic slowdown in China, our latest forecasts point to a period of sustained growth and strong demand for new vehicles and tires through the coming decade," Stephen Evans said.

"Much of the demand will originate from China and to a lesser extent India, but overall the years through to 2022 will be a period of opportunity for tire makers and the replacement and service sectors."

As evidence for his forecast, Mr. Evans adduced strong growth in original equipment and replacement tire sales as a result of increased vehicle production forecasts:

• OE passenger car tire sales growing to 524 million units by 2022 from 333 million units in 2012; and

• Replacement car tire sales moving to 1.3 billion units by 2022 from 786 million units in 2012 .

"We believe there are currently around 1.1 billion vehicles in use around the world and predict that figure will rise to as many as 1.7 billion towards the end of the coming decade. China alone is set to reach a target of an extra 250 million vehicles over the same time frame," Mr. Evans concluded.

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This report appeared on the website of European Rubber Journal, a U.K.-based sister publication of Tire Business.