French tyre maker Michelin reported sales of €27.2 billion in 2024, down 4.1 percent from €28.3 billion in 2023, demonstrating resilience in a challenging market environment marked by declining volumes and currency headwinds. The company achieved a segment operating income of €3.4 billion with a 12.4 percent margin, while generating a net income of €1.9 billion. The board has proposed a dividend of €1.38 per share for shareholders.

Managing Chairman Florent Menegaux stated: "Our 2024 results are solid, despite a particularly unstable economic and geopolitical context. To maintain our competitiveness, we also had to make difficult industrial restructuring decisions in Poland, China, Sri Lanka and France. Michelin continues to implement its 'Michelin in Motion 2030' strategy".

In the Automotive and Two-wheel segment, Michelin recorded sales of €14.7 billion, representing a 1.3 percent decline, while maintaining a strong operating margin of 13.1 percent. The segment demonstrated robust performance in the premium category, with MICHELIN-branded Passenger car tyre sales reaching 65 percent in the 18-inch and larger tyre segment.

The Road Transportation division witnessed sales of €6.6 billion, declining 4.9 percent year-on-year. However, the segment showed significant improvement in operating margin, which rose to 9.0 percent from 6.8 percent in the previous year. The division's Connected Solutions business, under the MICHELIN Connected Fleets brand, continued to expand successfully.

The Specialties business recorded sales of €5.9 billion, marking a 9.4 percent decrease, with an operating margin of 14.6 percent. While the mining tyre business faced temporary challenges, it maintained its market share, and the aircraft tyre segment demonstrated positive growth momentum.

In terms of regional performance, Europe's replacement tyre market grew by 9 percent, despite a 7 percent decline in passenger vehicle Original Equipment and a 20 percent drop in trucks. North America showed resilience with a 2 percent growth in the replacement market, while experiencing declines of 2 percent and 11 percent in passenger and truck Original Equipment segments respectively. The Chinese market contracted by 5 percent overall, though Original Equipment grew by 3 percent in passenger vehicles.

Michelin has undertaken significant strategic initiatives in 2024, including manufacturing network optimisation through plant conversions in Olsztyn (Poland) and Shenyang (China), while announcing the closure of operations in Cholet (France) and the sale of Sri Lanka plants to CEAT Group. The company launched the innovative BioButterfly project for bio-based butadiene production and partnered with Microsoft for energy optimisation across its facilities.

On the financial front, Michelin executed a €1 billion bond issue in two tranches and announced a €1 billion share buyback programme for 2024-2026. The company's strong financial position was recognised with a credit rating upgrade to A2 by Moody's.

Looking ahead to 2025, Michelin anticipates slight market growth, though with a decline in the first half due to lower Original Equipment demand. The company expects to improve its segment operating income at constant exchange rates and generate free cash flow before acquisitions exceeding €1.7 billion.

Comments (0)

ADD COMMENT

Link Copied!

French tyre major Michelin has inaugurated its first standalone Michelin Tyres & Services store in Kochi, Kerala. Launched in partnership with Global Tyres, this further adds to the company’s aggressive expansion plans for India.

The new facility spread across 5,500 sqft provides a comprehensive range of tyre-related services under one roof, including tyre sales, professional fitment, wheel balancing, alignment, nitrogen inflation and alloy wheel upgrades.

The store was inaugurated by Prashant Sharma, National Sales Manager at Michelin India, along with the team from Global Tyres.

Shantanu Deshpande, Managing Director, Michelin India, said, “Kochi is an important and fast-evolving mobility market. The launch of our first standalone Michelin Tyres & Services store in the city underscores our commitment to bringing world-class products and services closer to customers. Together with our experienced partner Global Tyres, we aim to deliver a premium experience that matches the expectations of Kochi’s growing base of automotive enthusiasts and discerning drivers.”

The tyre maker stated that Kochi is experiencing a steady rise in personal mobility and premium vehicle ownership.

Comments (0)

ADD COMMENT

Link Copied!

Giti Tire Co., a leading Chinese tyre manufacturer, reported a sharp 48.9 percent fall in first-quarter net profit, citing surging raw material costs that outpaced revenue gains.

Net profit attributable to shareholders slid to 23.7 million yuan in the three months to 31 March, down from 46.3 million yuan a year earlier.

“The decrease in net profit was mainly due to the year-on-year increase in raw material prices,” the company said.

Despite the profit decline, Giti’s operating revenue rose 4.8 percent to 1.13 billion yuan, supported by stronger sales volumes. Net cash generated from operating activities rebounded to 35.7 million yuan, compared with an outflow of 45.9 million yuan a year earlier, as receipts from customers increased.

Operating costs jumped to 1.06 billion yuan, with raw material and production expenses comprising the bulk of the rise. Meanwhile, the company’s total assets grew 3.6 percent to 4.5 billion yuan by the end of the quarter.

Comments (0)

ADD COMMENT

Link Copied!

Chinese tyre manufacturer Aeolus Tyres opened a new warehouse facility recently in Manila and launched its latest light truck tyre series at an event attended by more than 150 industry stakeholders from across the Philippines.

The warehouse, situated on Luzon Island, marks a significant expansion of Aeolus Tyres’ distribution network in the northern Philippines, aimed at strengthening dealer relationships and enhancing service delivery times across the region.

The company simultaneously unveiled its new light truck tyre range, which features enhanced load-bearing capacity and extended durability. The products have been developed specifically for the Philippine logistics sector, where demanding road conditions and heavy cargo requirements pose particular challenges for commercial vehicle operators.

Fleet operators and industrial partners gathered at the Manila launch event, which also saw the presentation of parent company Prometeon Tyre Group’s localisation strategy for the Philippine market.

The strategy focuses on adapting product specifications to match the country’s diverse terrain and operational requirements, providing more targeted solutions for local customers.

Aeolus Tyres’ warehouse expansion comes as the company seeks to capitalise on growing demand in the Philippine commercial vehicle market, where logistics companies are increasingly seeking reliable tyre solutions that can withstand the archipelago’s challenging road infrastructure.

The new facility is expected to reduce delivery times and improve inventory management for dealers across northern Luzon, one of the Philippines’ key economic regions.

The light truck tyre series launch marks Aeolus Tyres’ latest effort to gain market share in Southeast Asia’s commercial vehicle segment, where competition among international tyre manufacturers has intensified in recent years.

Comments (0)

ADD COMMENT

Link Copied!

Continental is positioning itself as a key player in the sustainable transformation of commercial vehicle fleets in Europe through its Conti Eco and Conti Efficient Pro tyre lines. With the EU’s stringent CO₂ reduction targets for heavy-duty vehicles (a 45 percent cut by 2030 compared to 2019 levels), the company emphasises how tyre technology directly impacts fleet electrification and emissions reduction.

The development of these tyre lines is centred on increasing fuel and energy economy, particularly for regional and long-distance transportation. Continental tyres assist business fleets reduce their environmental impact by lowering rolling resistance while maintaining high mileage. The Conti Hybrid tyre is ideal for urban and regional operations with frequent stop-and-go traffic because of its increased resilience, enabling a long service life even under difficult conditions.

Continental prioritises collaboration with fleet operators and manufacturers to develop tyre solutions that meet changing industry expectations. According to Hinnerk Kaiser, Head of Product Development EMEA at Continental, the company's existing portfolio is already well-suited for electric mobility, but it will continue to evolve to assist the larger transition to zero-emission transportation. The emphasis remains on maximising rolling resistance, load capacity and longevity to ensure that tyres make a substantial contribution to sustainable fleet management.

Energy efficiency is still quite important as fuel combustion accounts for 90 percent of the CO₂ emissions of a diesel vehicle and even electric trucks see 75 percent of their emissions connected to the generation of power. By minimising rolling resistance, Continental’s tyres contribute directly to lowering energy consumption and overall fleet emissions, supporting both sustainability and cost efficiency.

Electric commercial vehicles, which are around 30 percent heavier than diesel trucks due to battery weight, necessitate tyres with greater load capability. The Conti Eco HS 5 and Conti Efficient Pro HS 5 lines meet this need with a higher load index, allowing fleet operators to retain payload capacity without sacrificing performance. Markus Erdmann of Designwerk Technologies, a Continental partner in electric mobility, observes that current battery-electric vehicles with around 500 kWh capacity now have low payload drawbacks, due in part to enhanced tyre engineering.

Comments (0)

ADD COMMENT

Link Copied!