The last time I wrote about the best tyre industry innovations in 2021, I thought it would be natural to follow this up with an outlook for the European tyre market in 2022. In short – the market is stranger than ever. As the sea freight costs skyrocketed from Asia to all over the world around a year ago, many importers were uncertain if they would still be able to sell budget tyres, particularly from China in Europe, as the landed costs approached, or in some cases even exceeded, the cost of European produced second and third-tier brands. For this reason, many importers decided to skip not just the winter season imports but also the summer season, and the result is an almost historic shortage of budget tyres. Well, one could say that budget tyres are in the market no more, as the freight costs in some cases could amount to 50 percent of the tyre cost prices, pushing retail pricing into the realm of second-tier brands. Especially for truck and bus tyres, the shortage developing in 2022 is massive, and it’s not limited to Asian products.
As if this wasn’t enough, the cost of everything is increasing as well. Both commodities and raw materials are turning costlier at speeds not seen in a long time, with almost historically high inflation rates in the Euro Zone on the coattails. So, the picture of the tyre market has become increasingly oblique. There are still stocks of tyres from 2020 and 2021 where cost prices were drastically much lower than they are now, and this means that there may be offers of premium brands from 2020 floating around with unit prices for comparable sizes that are actually cheaper than the equivalent from a Chinese brand produced in 2022. It must be confusing for consumers until the stocks are depleted, and the segments normalise. The only difference is that the price gap between premium and budget has become much smaller. So, what will that do to market shares? Only time will tell. But as long as there is a shortage, I’m confident that tyres in all segments will still be sold, no matter what.
As I’m writing this, Russia has invaded Ukraine, and apart from the massive tragedy that it is, it has caused even further disruptions to supply chains, material and commodity availability, and the general purchasing power of European consumers. As the shipping lines to Russia are halted because of the war and massive exodus of foreign businesses in the country, and they are also reduced to US as the port congestion and carrier queues on the West coast have reached unmanageable levels for the carriers, the lines and container availability is expected to ease up a bit for European destination ports, which means that sea freight costs could also be on the way down again. But there are so many factors pulling in both directions that any sane person would abscond from placing large bets on anything.
In Europe, the pandemic is gradually disappearing, and only some countries still have restrictions in place. But the situation is drastically different in Asia, especially China, where new lockdowns are underway, and the virus is spreading like never before since the very first outbreak. Knowing how swiftly the Chinese government shuts everything down and enforces curfews on whole cities when they have just a few infected, it’s very likely that logistics and port terminals will be hampered or closed off completely, and that could knock all stability in the shipping market out once more.
The only thing that is clear so far is that cost complexity for tyre production, supply chain, and distribution has increased by an incredible factor over the past two years. Local production has never had such an advantage over Asian output as it has now. Still, on the other hand, the cost of raw materials and freight costs for said materials have increased tremendously, as have road transportation and distribution costs. The cost of production is growing all over the globe as the cost of electricity and steam supply is also multiplying. However, as salaries are following the extremely high inflation rate, the most automated production facilities still have an advantage over the labour-heavy ones.
All these factors, in the end, affect budget tyres the most, as they are more sensitive to fluctuations in raw material and production costs and are particularly vulnerable to high freight and labour costs. At the moment, budget tyres from China are on par with or above several Japanese and Korean brands, and even second-tier brands produced in Eastern Europe. While this will certainly increase their prices gradually to distance themselves from the budget brands a bit more in terms of pricing, they don’t regulate overnight, and that means that effectively there is no budget segment in Europe for the major part of 2022 barring the second tier-priced brands made in countries all over the world that are usually priced very differently in the market.
I believe I’ve said many times that Chinese tyres are more competitive when the market is enjoying low costs all through the supply chain, as the raw material costs and transportation costs make up for most of the cost structure, while it accounts for a smaller fraction of the cost structure of a second-tier or premium brand tyre – here the heavier cost elements are R&D, testing, marketing etc. which is notoriously lacking in most Chinese tyre cost structures. So, in the current market, one might wonder where the customer segment for Chinese tyre products is as we move further into 2022. Depending on who you’re rooting for, the outlook might be very bleak.
Tegeta Green Planet Explains Producer Responsibility To Future Automotive Professionals
- By TT News
- October 08, 2026
Tegeta Green Planet opened the Light Vehicle Diagnostics course at Tegeta Academy with a presentation for attendees aged 17 to 33. Beyond their chosen vocational field, participants learned about automotive waste management and environmental responsibility.
Shalva Akhvlediani, the organisation’s director, outlined its activities and goals while emphasising Extended Producer Responsibility. The session examined how the automotive sector connects to environmental duty and why used tyres, waste oils and automotive batteries must be collected and managed properly.
Tyre management and RECSOL featured prominently. Attendees traced a used tyre’s path from collection to recycling and learned how waste becomes a source of new resources. RECSOL, Tegeta’s tyre recycling plant, is a significant infrastructure project in used tyre recycling, processing tyres into materials for various uses and supporting circular economy principles.
A core aim is a system where waste is not an endpoint but the starting point for new resources, which requires infrastructure alongside greater public awareness and information on proper disposal. For participants, the meeting linked professional education with environmental awareness, stressing that future automotive professionals should understand this responsibility early.
Tyres Europe Joins Industry Call To Rethink CBAM Scope Extension
- By TT News
- October 08, 2026
Tyres Europe, alongside ACEA (the European Automobile Manufacturers’ Association) and CLEPA (the European Association of Automotive Suppliers), has dispatched a joint communication to EU decision-makers concerning the possible broadening of the Carbon Border Adjustment Mechanism (CBAM) to cover downstream goods. The move comes as trilogue discussions approach.
Tyre producers form part of an automotive value chain already bearing carbon-related expenses for steel and aluminium manufactured within Europe. The proposed expansion would draw additional products into the mechanism’s remit before the existing framework has demonstrated its effectiveness. Resulting costs and administrative requirements would land on downstream manufacturers, tyre makers included, with signatories cautioning that a conceptually sound regulatory effort could become an operational and financial strain.
Endorsing the mechanism’s aims, the signatories nonetheless urge a proportionate scope that shields the entire value chain from carbon leakage while preventing that risk from being pushed further downstream. They advocate extending the mechanism only where a material carbon-leakage danger is evidenced, and request that policymakers ease compliance demands, including via more fitting default values mirroring real production routes.
NEXEN TIRE Renews Zalgiris Deal, Expanding Brand Visibility Across Europe
- By TT News
- October 08, 2026
NEXEN TIRE has extended its partnership with Zalgiris, reinforcing its commitment to basketball in Europe, particularly across the Baltic region. The renewal builds on a relationship that began in 2024 and reflects the company’s broader strategy of linking its brand to performance, innovation and mobility.
The tyre maker has pursued sports partnerships as a way to connect with fans, sharing in the passion and excitement of supporting favourite teams during major matches and memorable moments. It also values the teamwork, dedication and collective achievement that define team sports, using such ties to build authentic connections and deepen engagement in key European markets. Its collaboration with clubs including Zalgiris and FC Bayern München forms part of this approach.
Under the extended agreement, NEXEN TIRE will gain greater visibility among sports fans in the region. The partnership offers branding opportunities at Zalgirio Arena, such as synchronised on-screen advertising and promotion on LED stands near the court, in a position visible on television during EuroLeague and LKL home games.
The arrangement also includes a hospitality programme allowing NEXEN TIRE to welcome guests and business partners at Zalgiris home fixtures. Through the strengthened alliance, the company aims to share its passion with more fans while raising brand awareness across the region.
Ricky Lee, Managing Director, NEXEN TIRE Poland, said, “Our cooperation with Zalgiris has developed positively since 2024, and we are pleased to extend and strengthen this partnership. Basketball has a particularly strong following in the Baltic region, making Zalgiris an important partner as we continue to grow our presence and engage with fans. We look forward to supporting the team throughout the season and doing our best to create positive experiences for both the players and their passionate fans.”
Paulius Jankunas, President, Zalgiris, said, “We are delighted to continue our cooperation with NEXEN TIRE and build on the partnership we started two years ago. NEXEN TIRE brings extensive experience in sports marketing, and we are proud to work together on creating meaningful projects and experiences for our fans. We look forward to another successful period of cooperation and to welcoming NEXEN TIRE’s guests and partners to our games and events.”
TBC Corporation Expands Multi-Mile Tyres Portfolio With Four New Lines
- By TT News
- October 08, 2026
TBC Corporation, one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has widened its tyre portfolio through the addition of four new lines under the Multi-Mile Tyres banner. Serving as a value step-up brand, Multi-Mile gives dealers a strong mix of broader product coverage and improved consumer advantages crafted to drive better retail margins, helping retailers offer greater value while lifting profitability. With this expansion, the portfolio now reaches over 85 percent of the vehicle market, offering dealers more ways to satisfy customer demand.
Among the additions are tyres built for rugged and mud terrain use, boasting self-cleaning treads that push out mud and stones alongside dependable traction both on and off the road. Also joining the range are commercial and C-metric speciality tyres tailored to heavy-duty regional and long-haul trucks, together with all-weather tyres that hold the 3-Peak Mountain Snowflake severe snow rating and are made for high mileage and consistent year-round use.
A prominent name in the replacement tyre segment, Multi-Mile carries cutting-edge touring, high-performance and broad-line tyres suited to passenger cars, light trucks and SUVs. Meanwhile, the upgraded Mile After Mile Protection Plan warranty now delivers broader coverage, adding three-year roadside assistance, a three-year road hazard protection plan and a 60-day ride guarantee on top of its extensive treadwear warranties.
Rachel Tibor, Chief Marketing Officer, TBC Wholesale, said, “For more than 70 years, Multi-Mile products have offered cost-efficient, reliable and durable tyre options that enhance safety and performance. With this expanded portfolio, Multi-Mile strengthens its position as a value step-up brand, giving dealers more opportunities to meet evolving consumer needs while offering a product mix designed to support stronger retail margins. We’re continuing our longstanding tradition of supplying the right products at the right time for every type of vehicle and application.”
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