Tyres & Accessories March 2013

Page 31

SUV AND 4x4 TYRES

Speed rating evolution in the European SUV/off-road tyre market tems”, if you will), backs up the 2002 … 2007 2008 growth predictions WYZ % 0.7 8.1 9.9 for the “road tyres” V% 2.9 14.2 15.2 with speed indexes H% 28.7 33.6 34.2 of V and WYZ. T% 20.2 14.2 13.6 Referring to sales <=S % 47.5 15.2 13.4 units only, “V rated SUV Summer Off-Road % ** 14.7 13.6 tyres representing just over 27 per *Predicted **No data set available cent of the 4x4 Source: ETRMA, Continental Tire Group market was five per cent up on the previous MAT [moving annual total]. WYZ mercial vehicle sales,” finishing at nine tyres representing just over 13 per cent per cent down. of the market grew in sales volumes by 11 per cent.” (It is worth noting that the Budget sales grow but bigger brands researcher’s sample group is made up of still dominate specialist tyre resellers in the UK – i.e. not including dealerships/the VMA chan- In terms of 4x4/SUV segments, GfK nel, service and MOT agents or internet notes that “Premium” brands still pure players.) account for a share just under 58 per The segments, which only around ten cent, while “Value” brands account for years ago covered over 90 per cent of the around a quarter. “4x4 sales historically total European SUV/4x4 market, showed were and continue to be primarily compodeclines well into double figures in this sed of premium brand tyres,” GfK says. MAT compared to the equivalent “Most 4x4 drivers will have experienced February 2010 – January 2011 period. GfK a premium brand recommendation when research shows that sales of H-rated buying tyres.” 4x4 tyre retailers also contyres – still the most popular single seg- tinue to recommend primarily Premium ment of the UK market, with a 34 per brands in this segment, with the original cent share – declined by a whopping 21 equipment brand taking precedence, GfK per cent. The S and T segment also drop- reveals. ped 14 per cent, though they collectively These shares mean that the Premium represent nearly 21 per cent of the mar- segment has lost nearly five per cent ket. In total GfK says that 4x4 sales for share compared to the previous MAT, the latest MAT were “more depressed with unit sales dropping 16 per cent over than passenger car tyres and light com- the last twelve months. The average sell-

2009 11.4 16.3 34.8 14.3 10.6 12.6

2010 12.3 17.5 35.7 13.1 9.3 12.2

2011 12.3 17.5 35.9 11.6 7.7 15

2012* 13.7 20.4 34.5 11 6.1 14.3

out price for a Premium segment tyre, excluding valve, balance and fitting, was £160. In GfK’s Value segment, unit sales dropped nine per cent. It is necessary to give these results some context by pointing out that GfK uses a tripartite structure that only labels lead brands produced by the five largest tyre manufacturers as “Premium”, meaning some names that have been synonymous with this section of the tyre market are filed under the “Value” section. The less controversial Budget segment did record growth of 29 per cent in the MAT, and while this shows a significant jump, these brands still have a comparatively low base at just under 17 per cent of the market. GfK data shows that average prices for a budget brand tyre in the last twelve months increased from just under £80 to around £85. One questions whether these 4x4/SUV tyre unit sales gains can continue to develop for budget brands. On the one hand, the increasing need for greater safety characteristics engendered by the proliferation of higher-powered vehicles, and their drivers’ assumed ability to pay for high-technology products suggests that the segment ought to secure the still-dominant position of the upper pricing tiers. On the other hand, is it possible that the increased focus on costconsciousness in certain SUVs could allow budget products to increase their share further? andrew.bogie@tyrepress.com

As T&A goes to press, Land Rover is displaying its 9-speed automatic version of the Range Rover Evoque

TYRES & ACCESSORIES 3/2013

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