European tire replacement market declines
Truck and Bus Replacement Tire Market: Decline Far Exceeds Passenger Car Sector
In the second quarter of 2025, the truck and bus replacement tire market faced an even more challenging situation than the passenger car sector.
According to ETRMA data, truck and bus replacement tire sales plummeted 12% year-on-year in that quarter, a decline nearly three times that of passenger car tires. In the past three months, European truck and bus replacement tire sales totaled only 3.1 million units, a significant decrease compared to the same period last year.
Geopolitical Conflict: The Primary Driver of the Truck and Bus Tire Market Downturn
The sluggish truck and bus replacement tire market is driven by multiple and complex factors. The primary culprit is the economic uncertainty caused by recurring geopolitical conflicts. In this unstable environment, many European companies have cut operating costs, including reducing maintenance and replacement of their truck and bus fleets, which has naturally put tire replacement plans on hold.
When weighing the costs and benefits, logistics companies are choosing to "extend" tires, avoiding replacements as long as they are still usable to reduce operating costs.
Industry Restructuring: Further Squeezing the Truck and Bus Tire Market
In addition to geopolitical conflicts, structural adjustments within the truck and bus industry have also exacerbated the tire market's challenges. In recent years, with the booming development of e-commerce and the rise of last-mile delivery services, the use of small trucks has increased significantly, while demand for large trucks and buses has decreased.
This shift in vehicle type has directly led to a decline in the market for replacement tires for large trucks and buses. Furthermore, small trucks typically use tire specifications more similar to those used by passenger cars, further squeezing the truck and bus tire market share.
High Fuel Costs: Suppressing Demand for Truck and Bus Tire Replacement
Regarding fuel prices, persistently high fuel costs have forced logistics companies to prioritize reducing fuel consumption. While upgrading to more fuel-efficient tires for trucks and buses may be beneficial in the long run, the initial investment is high. In the current economic climate, many companies cannot afford this additional expense and therefore choose to continue using used tires, further suppressing demand for truck and bus replacement tires.
Agricultural Tire Replacement Market: Also in a Deep Decline
The agricultural tire replacement market is also facing difficulties. In the second quarter of 2025, sales of agricultural tire replacements declined 8% year-on-year to 120,000 units. Agricultural production has also been significantly impacted by geopolitical conflicts.
On the one hand, these conflicts have led to rising prices for agricultural inputs, such as fertilizers and pesticides, significantly increasing farmers' production costs and reducing their funds available for tire replacement. On the other hand, agricultural product sales have been hindered, reducing farmers' incomes and consequently decreasing their willingness to replace tires.
Changes in the Agricultural Structure: Impacting Agricultural Tire Demand and Sales
Changes in the European agricultural structure have also impacted the agricultural tire market. With the expansion of large-scale and intensive agriculture in some regions, the use of large agricultural machinery has become more concentrated, leading to the consolidation of some small farms and a shift in the demand structure for agricultural tires.
Faced with operational pressures, small farmers are more inclined to reduce non-essential expenses, including tire replacements. Large agricultural companies, on the other hand, tend to prioritize long-term partnerships and cost control when purchasing tires, resulting in longer procurement cycles. This has also led to sluggish sales growth for agricultural tires.
Market Turnaround: Environmentally friendly tires and online channels are emerging as breakthroughs
Despite facing numerous challenges, the market is not without hope. As Europe's focus on environmental protection and sustainable development continues to grow, tires with environmentally friendly features, such as those made from low rolling resistance and recycled materials, are gaining favor among some companies and consumers.
Whether in the passenger car, truck and bus, or agricultural tire sectors, environmentally friendly tires are likely to become a new driver of future market recovery and growth. At the same time, some tire companies are actively expanding online sales channels to reduce sales costs and increase market coverage, seeking new breakthroughs in the sluggish market environment.
