MILAN, Italy – Pirelli & C. S.p.A. estimates demand for passenger tires will decline 19% during 2020 versus 2019, as a result of the COVID-19 pandemic.
"In light of the elements available today and based on a prudent scenario, Pirelli now expects a fall of 2020 GDP at the global level of about negative 2.8%," the company said in a revised earnings statement published April 3.
The figure compares against an earlier forecast of 2.7% growth presented in the company's Industrial Plan released in mid-February.
Pirelli said its forecast is based on an 18% drop in replacement market sales and a 21% decline in the OE segment, although the company did not publish sales/shipment figures.
Pirelli attributed the replacement market drop in part on restrictions in movement across different countries.
Within this category, Pirelli said it anticipates the premium segment — tires with rim size of 18 inches and bigger — to decline 14%, down from prior indication of 6% growth. Demand for standard tires will take a more significant hit as Pirelli expects the segment sales to fall 20% as opposed to the original indication of 2% decline back in February.