European Tire Market 2026
Replacement Market: Weak Demand Spreads
The slump in the European tire replacement market has extended to all segments. Statistics from the European Tire Association show that overall replacement tire sales in Europe declined in 2025, and this trend showed no significant improvement until early 2026.
Passenger Car and Light Truck Tires: Sales declined by 2% year-on-year, with the year-on-year decline widening to 5% in the fourth quarter;
Truck and Bus Tires: Performed even weaker, declining by 4% year-on-year, mainly dragged down by sluggish freight activity;
Agricultural Tires: Also declined by 4%, reflecting a more cautious approach to agricultural investment.
Behind the weakening demand is the result of multiple pressures:
Tighter household budgets and high living costs have led many consumers to postpone tire replacements;
In many European countries, the mileage of light vehicles has not yet recovered to pre-pandemic levels, resulting in reduced tire wear;
The mild winter at the end of 2025 caused winter tire sales to plummet by 14% in the fourth quarter, still declining by 2% for the year;
Summer tire sales declined by 7% year-on-year, reflecting a gradual shift of consumers towards all-season tires.
Import Market: Policy Disruptions, Short-Term Surge
In contrast to the "cold" replacement market, import data is "hot"—primarily due to short-term fluctuations caused by trade policies.
In the first half of 2025, Europe saw a significant increase in tire imports from China, Vietnam, and other countries. This was not due to a recovery in end-user demand, but rather to dealers stockpiling in anticipation of potential EU tariffs. China's tire exports to Europe peaked in July 2025 and then quickly declined, coinciding with the stockpiling cycle.
Amidst overall import fluctuations, truck tire imports maintained growth, differing from other product categories. This is mainly due to two reasons:
Commercial activities create a rigid replacement demand for truck tires; even with a general downturn in freight transport, basic logistics must continue.
European domestic truck tire production capacity is limited, and driven by environmental regulations, green tires are more expensive, creating market space for imported products.
Policy and Future: Increased Uncertainty
The EU's anti-dumping and countervailing duty investigations into Chinese passenger car and light truck tires are still ongoing. While provisional tariffs have not yet been implemented, mandatory import registration has been in place since January 22, 2026. If the final ruling in July 2026 imposes tariffs, the tariffs will be retroactive to the registration date, adding further uncertainty to the import market.
Furthermore, the EU's Carbon Border Adjustment Mechanism (CBAM) has been formally implemented, and the Zero Deforestation Act may also impact supply chain layouts in the future. These environmental and trade policies will continue to shape the competitive landscape of the European tire market.
Summary: Finding a Way Out Amidst the Storm
The "ice and fire" situation in the European tire market is essentially a clash between short-term policy disruptions and long-term weak demand. For industry participants, it is necessary to:
Rationally view the current pressure on the overall replacement market;
Be wary of short-term procurement fluctuations caused by trade policies;
Focus on categories with inelastic demand, such as truck tires;
Actively adapt to increasingly stringent environmental and compliance requirements.
Only by remaining clear-headed and responding flexibly amidst complex changes can we achieve steady and long-term success in this market of "intertwined ice and fire".
