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GfK Tyre Panelmarket: Light Vehicles (Passenger Car, SUV/4×4, Light Truck/LCV) Q1-Q3.

The infographic focuses on all Light Vehicle type (new) replacement tyres over the first three quarters of 2022 which were impacted by the cost-of-living crisis as drivers restricted spending.

The first column shows the Panelmarket which has provided across all rims a boost for Value (+9%) but units were down slightly (-1%) as replacement rates fell despite the increase in vehicle age. There was no such downturn in larger rims (>=17”, which now represent more than half of the market) as units grew by just 5% whilst value performed at +14% indicating that costs are not absorbed by retailers & manufacturers and passed directly onto drivers.

Brand tier (unit based) for all rims continues to shift towards Budget (+2% points vs Q1-Q3 ’21 and +4% pts on Q1-Q3 ‘19) as drivers reduced spending. The move away from Premium and Mid-Range looks likely to continue as recession looms and high prices remain.

The picture for larger rims (>=17”) provides a similar outlook, despite the higher Premium share, Budget continues to gain share (+2% pts) closing the gap to just 15% pts, pre-pandemic figures gave Premium a 22% pt advantage. The future for Premium looks increasingly challenging, especially as new registrations remains relatively low.

Dimensions remain more stable with the 205/55/16 remaining in pole position with 8% share and the larger 225/40/18 edges up one place to third. The real test in dimension lies with Wholesalers / Tyre distributors who need to manage the increase in ICE & EV SKU’s.

The final column reflects on seasonality and it’s no surprise to see Winter decline further, however, in recent years All Season has provided a much-needed boost to the industry, but this has stalled. Units fall 2% compared to recent double-digit gains and Value adds only 7%, this indicates drivers downgrading to lower tiers and even switching to standard summer.

2023 will no doubt increase pressure on drivers’ disposable income as inflation, interest rates and fuel prices hurt even middle-income car owners, the key question is how far will they cut back?