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Tire market falls again in July

10% lower result is due to manufacturers and replacement market low demand

By Redação AutoIndústria | Translated by Jorge Meditsch

The monthly sales balance released by Anip, the Brazilian tire industry association, shows a market in continuous retraction.

Sales in July were close to four million units, 9.6% less than in June and 21% under the same month last year.

In the first seven months, 31.6 million tires were delivered, a 6.1% decrease from the 33.6 million sold last year.

The low demand if the vehicle industry and replacement market explain the performance presented so far.

Last month, the tire industry supplied about one million units to the manufacturers, 20.7% less than in July 2022 (1.2 million). The fall in the year reached 2.6% to 7.9 million, versus 8.1 million in 2022.

In July, sales for the replacement market slumped by 21.4% compared to the same month last year, with 2.9 million tires delivered. The retail market bought 22.7 million tires in the first seven months, compared to 25.5 million last year, a 7.2% fall.

Automobile tire sales reduced by 22% from June to July, from 2.7 million to 2.1 million. The reduction reached 6.9% in the year, with 16.3 million tires.

Tires for light commercial vehicles fell 23.4% from June to July, with 582.8 thousand units. In the seven months, 4.7 million tires were sold, 7% less than last year.

Cargo tires sold 483.9 units to manufacturers and  the replacement market in July, 23.2% under June. The fall reached 16.2%, from 4.5 million last year to 3.7 million in 2023.

Motorcycle tires for replacement sold 738.6 units in July, a 5.6% monthly fall. Nonetheless, 5.7 million units were delivered to the retail market in the year, a 9.7% high and the only positive indicator in the balance.

“The negative impact caused by the market unbalance, especially in the cargo tire segment, was not yet overcome, and the results kept under the previous years. We are living in one of the worst scenarios of the sector’s history”, said Klaus Curt Müller, Anip’s executive president.


Photo: Pixabay

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