Tire industry sold 0.2% less in 2022

By Redação AutoIndústria  | Translated by Jorge Meditsch

National tire manufacturers sold 56.6 million units in the internal market in 2022. The volume was almost the same as the previous year’s, with a fall of just 0.2%.

The performance was different in the main segments. While the market for passenger cars grew by 2.5%, and the light commercial vehicles grew even more, by 4.5%. The cargo vehicle tires segment fell by 6.5%, and sales for motorcycles shrunk by 4.5%.

According to Anip, the national tire industry association, which represents 11 companies, the sector was hit by the full tax exemption for cargo vehicle tire imports decided by the government in 2021.

‘The tax measure benefiting imports was the main cause of the industry’s weak performance”, says the organization, whose members sold 7.4 million tires for this segment last year.

The sector’s trade balance registered a US$ 113.6 million deficit in 2022. In 2020, there was a US$ 190.7 million surplus and a US$ 37.9 million deficit in 2021. The year’s total represented a deficit of 20.1 million units.

Klaus Curt Müller, Anip’s executive president, argues that the cargo tires import increase is rampant, and the effects worry the tire industry and the natural rubber and steel production chains. He ensures all are feeling the sales reduction and the consequent inventory increases.

“The sector already has begun to dialogue with the new government to revert this wrong measure that harms the tire industry in Brazil and puts all the production chain at risk”, he said.

The replacement market business was the most affected. Sales for heavy vehicles fell by 11.7% in this sector in 2022. On the other hand, direct sales to manufacturers advanced by 10.6%.

Passenger cars tires sales reached 30.3 million units – a 7.2% increase in sales for manufacturers and 0.6% in replacement purchases in the period. The manufacturers bought 12.2% more tires for light commercial vehicles. Replacement sales stagnated.

The motorcycle industry and market are still demanding fewer tires. After a 5.2% fall in 2021, total sales were reduced by 4.9% last year to 9.1 million units.