Michelin & Pirelli 2025 Tire Sales Regional Trends
Recently, global tire giant Michelin and large-size high-value passenger car tire leader Pirelli respectively released market sales statistics for June 2025, and the two showed completely different development trends in the global market.
Michelin data showed that in June alone, the global passenger car and light truck tire supporting market performed generally, and the European and American markets were particularly bad. The monthly sales of European passenger car supporting products fell by 4%, and the supporting sales in North America and Central America fell by 1% compared with the same period last year.
In the Chinese tire supporting market, Michelin's year-on-year growth rate also narrowed to 1%, lower than the average level in the first half of the year. In the first half of the year, Michelin's supporting sales performance was no better than the same period last year-the 8% decline in European supporting sales in the first half of the year and the 5% decline in North America and Central America dragged down Michelin's overall supporting performance.
This also means that Michelin's 10% growth in the Chinese market in the first six months of 2025 was used to offset the decline in supporting sales in the European and American markets.
On the other hand, the increase in new car sales brought about by China's new car purchase subsidies also helped Pirelli get more orders. In the first half of the year, Pirelli's supporting sales in the Chinese market increased by 11% year-on-year.
However, in the European and North American markets, Pirelli is also moving forward in "setbacks" - sales fell by 7% and 5% respectively. The series of tariff operations launched by the United States since the second quarter - the first reciprocal tariffs and the second auto parts tariffs - have dealt a heavy blow to new car sales in the North American market.
There are many reasons for the difference in market performance between the two. From a policy perspective, the new car purchase subsidy policy introduced by the Chinese government has achieved remarkable results.
The "Notice on Doing a Good Job in the 2025 Automobile Trade-in" jointly issued by the Ministry of Commerce and other 8 departments further clarified the subsidy policy, providing subsidies to consumers who scrap specific old cars and buy new cars, which greatly stimulated new car sales, thereby driving the demand for tire supporting market, which provided an opportunity for Pirelli and Michelin to grow in the Chinese market.
The US tariff policy has become an obstacle to the development of Pirelli and Michelin in the North American market. Tariffs have increased the cost of automobile production, suppressed new car sales, and thus affected the tire supporting business.
From the perspective of market strategy, Pirelli has always positioned itself as a high-end product, focusing on the research and development and production of high-performance, large-size tires. Its products are highly compatible with luxury cars and high-performance cars.
As the trend of consumption upgrading in the Chinese automobile market becomes more and more obvious, the demand for high-end tires continues to grow. Pirelli just meets this market demand and has an advantage in the supporting market. Although Michelin is also a leading company in the tire industry, its product coverage is wider and its targeted advantage in the high-end market is not as obvious as Pirelli.
Looking to the future, with the continued development of the Chinese automobile market and the further promotion of policies, the tire supporting market is expected to continue to maintain a growth trend, which is an opportunity for both Michelin and Pirelli. In the European and American markets, the uncertainty of the economic situation and trade policies still exists.
The two companies need to flexibly adjust their market strategies, such as strengthening cooperation with local car companies and optimizing production layout to reduce costs, to cope with possible challenges. Overall, the global tire market is in a complex and changing environment. Michelin and Pirelli need to accurately grasp the market dynamics in various regions in order to stand out in the fierce competition.
