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Summary and extracts

1 Market overview

1.1 Definition and scope of study

The tire (tire segment) is produced mainly from rubber and inflated with air or nitrogen. It provides grip and shock absorption by surrounding the metal rim of a vehicle. Tires are characterized by a particular tread pattern (symmetrical, asymmetrical, directional) and a specific type of use (depending on vehicle type, suitable for snowy weather, racing vehicles, etc.).

We must also distinguish between sales of tires directly installed on a newly-registered car ("original equipment") and so-called replacement sales of new or retreaded tires. A distinction is also made between tires for sedans, SUVs and 4x4s, vans, trucks and other vehicles.

The French market suffered from declining sales at the end of 2018. However, certain market segments remain dynamic, such as off-road and truck tires, which are resisting the downward trend in the sector. The market also faces international competition, particularly from Germany and China.

The market can rely on its international players and, above all, on the development of online sales by "pure players", even if they partly undermine the business of specialist retailers (in physical outlets), who lose market share every year.

The boom in online sales is contributing to the downward trend in consumer prices, while reducing manufacturers' and distributors' margins. Lower prices are prompting the sector's major players to offer ever more differentiated products to justify higher price levels, and to constantly renew their ranges and innovations (compressed-air-free technology, for example). The "premium" and "top-of-the-range" segments of the offer are thus doing well, with sales figures on the rise.

The Covid-19 epidemic had a severe impact on the original equipment tire segment, but replacement sales should remain stable, enabling manufacturers to weather this external shock. The sector has been hit hard by inflation, with average prices rising by more than 10% across all segments and distribution channels.

The global tire market was estimated at $245 billion in 2022 and $262 billion in 2023. It is expected to grow at an average annual rate of 7.4% until 2028.

On a national scale, the volume of tire production and retreading will amount to over 30 million in 2023.

1.2 Global market growth

Tire market trends France, **** - ****, in billions of euros Source: ****

*projections

valued at $*** billion in ****, the global tire market is expected to grow at an average annual rate of *.*% until ****, reaching sales of $*** billion.

Passenger car tire production breakdown Europe, ****, in Source: ****

At European level, Germany is the leading producer ...

1.3 The French market

Trends in tire sales volume (***) France, **** - ****, in millions Source: ****

The French tire market is generally very stable. There have been few significant rises or falls over the past decade, apart from during the pandemic. The market did contract in **** (***). In ****, market volume was estimated at **.* million tires.

Evolution of tire ...

1.4 Foreign trade

External balance of the tire sector France, **** - ****, in thousands of euros Source: ****

After the pandemic, international trade rapidly picked up again, particularly imports. The coverage rate was *.** in ****. The main countries receiving French exports are as follows:

Main tire export partner countries France, ****, in thousands of euros Source: ****

Germany is ...

2 Demand analysis

2.1 Structural determinants of demand: road traffic

Naturally, the demand for tires (***) is highly dependent on the density of road traffic in France. These two indices are correlated, since the more cars there are, the more tires are needed.

Average daily traffic trends France, **** - ****, in vehicles/day Source: ****

There is a structural increase in road traffic in ...

2.2 Demand drivers: the seasons

The seasons play an important role in tire demand. But not all French people are sensitive to this variable, and therefore don't change their tires all year round:

Tire choice by season France, ****, in Source : Goodyear The majority of French drivers use all-season tires all year round (***). More than a fifth ...

2.3 French preferences

All-season tires increasingly popular

Tire sales volumes by type France, **** - ****, index base *** in **** Source: ****

Since ****, the trend has clearly been in favor of all-season tires.

Winter tires, on the other hand, are affected by the government's delay in implementing the decree designed to define the amount of fines for failure ...

2.4 Favourite Brands in France

Preferred tire brands France, ****, % of total Source: ****

Michelin is by far the most popular tire brand in France, with **% of respondents saying they like the brand. It is also the best known: only *% of those surveyed did not know it. The other four brands have relatively similar statistics: they are liked ...

3 Market structure

3.1 Market organization: from new tire production to distribution

Source: ****

3.2 A trend towards concentration of players

The sector appears to be undergoing a process of concentration, as illustrated by the following graph:

Number of establishments in penumatic manufacturing and retreading France, **** - ****, in units Source: ****

The number of companies registered under NAF code ****Z "Tire manufacturing and retreading" has effectively been in structural decline since ****. In ****, there ...

3.3 Distribution

the following chart shows the changing structure of the tire sales sector since ****:

Passenger car tire volumes by distribution channel France, **** - ****, in Source: ****

The growing popularity of other channels (***).

Focus on specialized distribution

Breakdown of volumes by type of activity France, ****, in Source: ****

In terms of volume, the BtoB and ...

4 Offer analysis

4.1 Tyre types and main parts

The main parts of tires

The crown area: This is the area in contact with the road surface, so it must provide grip without impeding rolling. In addition, to prevent aquaplaning, this zone is sculpted with slots, the depth of which depends on the type of tire and current regulations. Sidewall: ...

4.2 Price trends

Tire price trends by category France, **** - ****, in € incl. VAT Source: ****

While tire prices (***). Light truck and touring tires, meanwhile, reached record prices in ****: the price of a light truck tire is €***, and the price of a touring tire, although still the least expensive, is €***.

Average price trends for all-season, summer ...

4.3 Sales structure by product

Breakdown of sales volumes by product type France, ****, in Source: ****

In terms of volume, sales of passenger tires account for a significant share (***). However, the orders of magnitude change dramatically when we reason in terms of sales rather than sales volume:

Breakdown of specialized tire distribution sales by product type France, ...

5 Regulations

5.1 Harmonized systems and Nomenclature des Activités Françaises

The Harmonized System is an international nomenclature for product classification. It enables participating countries to classify traded goods on a common basis for customs purposes. At international level, the Harmonized System (***) for the classification of goods is a six-digit code system. [***]

The HS comprises around *,*** item/product descriptions, which appear as ...

5.2 Current regulations

Since June ****, all tires manufactured and marketed within the European Union must carry a sticker or label displayed at the point of sale. The label must provide a range of information:

Wet braking (***) Tire noise level (***) Fuel consumption (***)

Source: ****

These obligations were reinforced in November **** and **** with controls. This labeling system ...

6 Positioning the players

6.1 Segmentation

  • Michelin Groupe
  • Goodyear
  • Bridgestone
  • Euromaster
  • Speedy (Bridgestone)
  • Mobivia Groupe (Norauto, Midas)
  • Point S
  • Allopneus
  • Feu Vert
  • Norauto
  • Pirelli
  • Continental
  • Midas France
  • Hankook Tire
  • Roady (ITM Intermarché)
  • WYZ Entreprise
  • Bestdrive (Continental group)
  • First Stop (Bridgestone)
  • 1001Pneus
  • GCS Génie Civil Service

List of charts presented in this market study

  • Tire market trends
  • Breakdown of passenger car tire production
  • Average daily traffic trends
  • Number of kilometers traveled
  • Growth in the number of liber-t (electronic toll collection for light vehicles) subscribers
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Latest news

A new manager for Point S - 11/09/2024
  • - Number of Point S outlets in France: 660
  • - Total number of Point S outlets worldwide: over 6,200
  • - Number of countries where Point S is present: 51
  • - Number of Point S center concepts: 7
    • - Point S City: for rural communities and city centers.
    • - Point S Entretien Auto: for inner-city customers.
    • - Point S Centre Auto: in shopping areas, with a self-service sales area.
    • - Point S Glass: dedicated to glazing.
    • - Point S Industriel: for professional customers (HGVs, civil engineering, agriculture, etc.)
    • - Point S Ecomobilité: for the sale, maintenance and repair of electric two-wheelers (bicycles, scooters).
    • - Point S Vente Auto: specializing in the sale of 0 km and used cars.
Automotive: German giant Continental ready to split in two - 06/08/2024
  • - Continental's automotive division employs around 100,000 people worldwide.
  • - The division generated sales of €20.3 billion in the last fiscal year.
  • - R&D accounts for 12% of the division's sales.
  • - Continental has announced that it will cut 7,150 jobs, around 40% of them in Germany.
  • - The group is 46% owned by the Schaeffler family.
Midas is recruiting franchisees in Morbihan and Brittany - 25/04/2024
  • - Midas Europe, a world leader in automotive maintenance and services, belongs to the Mobivia group, which generates sales of 3.1 billion euros with 22,000 employees.
  • - Midas' sales target for 2023 is 274 million euros.
  • - Midas intends to accelerate its development in Brittany, where it currently has 9 out of a total of 364 outlets.
  • - The investment required to open a Midas franchise is 250,000 euros, with a personal contribution of 80,000 euros.
  • - Average sales per Midas outlet are 800,000 euros
Michelin: the pros and cons of moving upmarket - 12/02/2024
  • Michelin's sales in 2023 are 28.3 billion euros, down 0.9%.
  • The decline in Michelin tire sales volumes is nearly 5% in 2023.
  • The measured gain from price increases in 2022 and early 2023 is 1.3 billion euros on sales.
  • Michelin's operating income for 2023 is €3.6 billion, up 5% on the previous year.
  • This represents 12.6% of sales.
  • Michelin's net income is almost stable at €1.98 billion, compared with nearly €2 billion in 2022.
  • Michelin is counting on efficiency gains from 2025 following the closure of three industrial sites in Germany and one plant in the United States.
  • The Michelin Group has around 45 plants worldwide
A new CEO for Mobivia (Norauto, Auto 5...) - 08/02/2024
  • - Mobivia brings together 11 brands and some twenty start-ups
  • - Mobivia sales of 3.6 billion euros
  • - Mobivia has 1985 workshops and car centers in 17 European countries
  • - More than half of Mobivia's sales come from international markets
  • - Mobivia's core businesses are: motorist services, parts and tire distribution, and new mobility.
  • - Mobivia's twenty or so start-ups include Gaya, Trusk, Fifteen, the European leader in public bike-sharing services.
  • - Norauto, Auto 5, ATU, Midas, Carter-Cash, Bythjul & Skruvat, Däckskiftarna, Synchro Diffusion, iWip and Black-Star are just some of the brands that are part of Mobivia.
Pirelli: Italy raises its stake in its national flagship - 10/01/2024
  • The Camfin holding company increased its stake in Pirelli from 14.1% to 20.6%.
  • Sinochem, Pirelli's largest shareholder, holds 37% of the company's capital.
  • Pirelli's Board of Directors comprises 15 members, nine of whom may be appointed by Sinochem and four by Camfin.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Michelin Groupe
Goodyear
Bridgestone
Euromaster
Speedy (Bridgestone)
Mobivia Groupe (Norauto, Midas)
Point S
Allopneus
Feu Vert
Norauto
Pirelli
Continental

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the tire market | France

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