Reflecting the general drop in consumer demand that began around the middle of the year, United States replacement passenger and light truck tire shipments declined during 2022.
Passenger shipments in the replacement channel - which totaled 216.1 million units, according to MTD estimates - declined by slightly less than 2.6% from prior-year levels.
Replacement light truck tire shipments - which came to 37 million units - dropped slightly less than 2.9% year-over-year.
However, original equipment passenger and light truck tire shipments climbed as automobile production gradually increased.
OE passenger tire shipments (41.5 million units) rose around 10% versus 2021 levels, according to MTD estimates. OE light truck tire shipments (6.2 million units) also grew by around 10%.
Will consumer tire demand rebound in 2023? That depends on several factors.
The Federal Reserve recently announced that it seeks to achieve “inflation at the rate of 2% over the longer run.” (The national inflation rate fell to 7.1% in November 2022, the lowest level since December 2021.)
However, interest rates are expected to remain elevated throughout the year.
An upswing in vehicle miles driven will work in the tire industry’s favor. And fewer tire manufacturer-driven price increases are expected.
The digital edition of MTD’s 2023 Facts Issue can be viewed here!
