Production and import of tires to the Russian Federation is increasing
Source：Kommersant
From：Taiwan Trade Center, Moscow
Update Time：2024/01/10
Tire production in Russia in the third quarter turned positive for the first time since the beginning of the crisis - 10.3 million units were produced in three months. Although 2022’s low base also had an impact, factories of foreign brands that were transferred to Russian players are reaching stable production volumes, mainly of passenger tires. The situation is similar in imports, which continue to grow. For the season, mostly non-studded tires were imported and studded tires were produced. In addition, analysts say, imports traditionally cover the need for large-diameter tires.
According to the results of January-September, 2023, the supply of tyres in the Russian Federation increased by 9.3% compared to last year, reaching 56.7 million pieces, follows from the review of the CRPT (operator of the marking system «Fair sign») and the National Scientific Center for Competence in the Field of Combating Illegal Trafficking.
Local production remains the main source of production, with 29.6 million tyres produced in three quarters. Output is still negative for the year (down 13.3%), although it has slowed down. And in the third quarter, local production even exceeded the 2022 level - 17.1%, up to 10.3 million tires.
42.7 million tyres were produced in Russia in 2022.
The growth is due to the low base of the third quarter of 2022 (after the outbreak of hostilities in Ukraine, foreign players suspended the work of factories in the Russian Federation or reduced output due to supply problems), and changes in the tire market in 2023. Most large plants have already changed owners and adapted to new conditions. For example, the Nokian Tyres plant has gone «Tatneft» and operates under the brand Ikon Tyres, Continental - group «C8 Industrial Assets» (holding also acquired Russian Cordiant).
Local factories mainly produce passenger tires, and their production in the third quarter increased by 22.2%, to 7.7 million units, remaining at the level of the second quarter. The majority of passenger tires were winter (6.1 million). As the largest manufacturers told Kommersant, in the third quarter the companies continued to produce additional tires for the season. The peak season for changing tires is mid-October - mid-November, but pre-season sales began in September.
In addition to production, the import of tires to the Russian Federation also increased in the third quarter - by 1.5 times, to 8.3 million units.
Based on the results of nine months, almost 23 million tires were imported into the Russian Federation. Most of them were passenger tires - 5.5 million units in the third quarter. In addition, as noted in the CRPT, these were mainly non-studded winter tires (2.7 million units), while studded tires occupied a large share of the output.
Studded tires lead in demand in Russia in this season of rubber change, noted in «Avito». They accounted for 68% of total category sales in late October - early November. «On "Avito" now placed more than 2.2 million ads on the sale of tyres for cars, of which about 849 thousand, almost 40% of the total share -- new products,» - says the head of the category «Spare parts and accessories» Alexander Kuroptev.
According to «Avito», the top sales of new tires includes the Chinese Triangle - its share reached 7.4%.
The remaining brands in the top 5 sales are Nokian, Pirelli, Yokohama, Michelin, which were produced or are being produced in the Russian Federation.
Among the imported brands, the company also noted an increase in interest in Korean Hankook and Kumho (together occupy up to 5% in sales), as well as Chinese Sailun.
On September 1, a decree came into force allowing fines for out-of-season tires.
Sergey Udalov from «Autostat» clarifies that tyres of standard size R17 and above were traditionally imported into Russia, while the rest of the market was filled by local production.
In particular, brands from China supplied tires for large SUV sizes and now the need for large-diameter tires is being met by Asian players. At the same time, studded tires, the analyst notes, “are really not what the local Asian markets need, so players from these countries can supply non-studded offers.” According to Chinese customs statistics, supplies of new tires to the Russian Federation in the third quarter in terms of money increased slightly - by 11%, to $463.8 million.
Source: https://www.kommersant.ru/doc/6322769