Pirelli: 'Market Rebound' Will Provide Opportunities
Pirelli & Cie SpA's recently published 2021-2022/25 Industrial Plan intends to "fully seize the opportunities offered by the market rebound in the next 24 months," according to company officials.
"In strategic continuity" with its previously announced plan, Pirelli's 2021-2022/25 plan "remains centered on high value" and calls for "leadership" in the 19-inch and above tire segment, as well as electric vehicle original equipment market share gains; "consolidation in emerging sectors, such as connectivity, new services and micro-mobility;" and more.
"At the same time, the plan introduces new elements and accelerates in specific directions."
These include "rebalancing of original equipment to give more emphasis to replacement," acceleration of the company's growth in China, "full implementation of the digital business model" and others.
Pirelli plans to "maximize" pull-through demand "thanks to the extensive portfolio of homologations. In 2021-2022, indeed, 85% of the growth in high-value volumes - demand for replacement in cars with Pirelli tires as original equipment - will be linked to the growth of the homologated replacement market, while 15% will come from the growth of share in this market," say company officials.
Looking ahead, Pirelli believes that "total miles driven at the global level will grow rapidly to reach approximately 11.8 trillion miles in 2025. This will highlight two trends: a pronounced preference, post-COVID, for the use of private cars even in the long-term, with a more contained use of new forms of mobility (e.g. car sharing, car rental, leasing) and growing use of two-wheelers.
"An important factor will be the increasing use of electric vehicles. In 2025, they will comprise 35% of premium and prestige car production and 11% of the global car parc. This sets a considerable technological challenge and places a significant competitive barrier for the development of tires that must support heavier loads, have lower rolling resistance, offer greater grip and a lower noise level."
Click here for more information about Pirelli's Industrial Plan.