The tires were blown away – Newspaper Kommersant No. 49 (7494) of 03/23/2023

In 2022, 42.7 million tires were produced in Russia, and the entire market, including the segment of agricultural and special equipment, amounted to over 35 million pieces. The crisis affected tire sales, they fell by almost 15%, the market especially notes the reduction in the share of the premium segment due to falling demand. At the same time, retail sales of passenger tires increased by 3.3%. Analysts note that some car owners could buy tires in advance amid fears of stopping supplies at the beginning of the crisis.

The tire market in the Russian Federation in 2022 decreased by 14.9%, amounting to 35.1 million units, follows from the estimates of Kommersant, based on the data of the “Overview on the tire product category”, prepared by CRPT (operator of the “Honest Sign” system) jointly with the National Scientific Competence Center in the field of combating illegal circulation of industrial products (NSCC) under the Ministry of Industry and Trade. In total, 49.1 million tires were withdrawn from circulation during this period. The data includes passenger, truck tires, as well as rubber for special and agricultural equipment and other products.

The output in the country for the year amounted to 42.7 million units, mainly summer (14.5 million units) and winter studded (11.3 million units) tires. Most of the summer tires were produced from January to May, winter – from May to November. Only in the fourth quarter, 16 million tires were put into circulation, of which 8.6 million were produced in the Russian Federation.

Last year, 19.1 million tires were sold to end consumers in retail outlets and remotely, which is 19.4% less than a year earlier. Mostly (78.5%), these were passenger tires, and their sales, on the contrary, grew by 3.3%, to almost 15 million units. Almost 15 million tires were delivered to organizations, which is only 6.1% less than a year earlier. Here, shipments were mainly made up of passenger cars (almost 7 million) and truck tires (5.5 million). If we take into account the number of cars and trucks produced in the Russian Federation, then, according to Kommersant’s calculations, more than 30 million tires could have gone into secondary equipment.

Sales of aftermarket tire manufacturers have been around 30-40 million units per year in recent years, according to the survey. Nokian Tires and Michelin estimated the aftermarket tire market in 2021 at 40.5–40.7 million units (see Kommersant dated February 10, 2022). Both companies are leaving the Russian Federation, Nokian has almost completed the sale of its Russian assets, including the plant in Vsevolozhsk, to Tatneft. In 2022, Nokian, Pirelli, Continental and Bridgestone factories operated from foreign brands in the Russian Federation. But difficulties with the supply of raw materials and the implementation of sanctions have already affected the volumes.

The export of tires from the Russian Federation over the past year fell by 18.2%, to almost 12 million units. Of this volume, almost 9.5 million units were intended for cars, almost 2 million for trucks. At the same time, shipments outside the Russian Federation were most active in pre-crisis January, and then in April, July and October 2022. The export of tires from Russia to the EU is prohibited by US sanctions. The Ministry of Industry and Trade did not answer Kommersant’s questions about export directions.

The average price of a set of tires increased by 3% in 2022. At the same time, the average price of a passenger tire at the end of the year increased by 20.5%, to 6.4 thousand rubles. The market review notes that the most popular tires remain below-average priced tires, accounting for more than half of all sales. Nokian Tiers adds that the premium tire segment has declined in 2022 amid falling demand.

After the crisis began in 2022, amid the fact that prices rose and supplies may not be available, some car owners tried to buy in advance – oils, spare parts, and sometimes tires, Sergey Udalov from Avtostat notes. This trend, the analyst believes, is typical for the retail segment. At the same time, a significant reduction in the premium segment is unlikely to have occurred, Mr. Udalov believes, assuming that some customers could go down a segment due to rising prices or postpone replacement for a season.

This year, rush demand, as it was last spring, should not be expected – with the exception of the traditional seasonal surge in sales, the analyst says. Most likely, Sergei Udalov believes, the market will linger at the level of last year, and purchases and brand selection will take place as usual – on the eve of the replacement of rubber.

Olga Nikitina