Clear growth in the tyre industry
in 2010

The global economy continued to pick up in 2010, supported by low interest rates. The GDP in Nokian Tyres’ core markets rose on average by 3–4 % and consumer confidence improved. New car sales increased, both in the Nordic countries and Russia by more than 30% year-over-year.

Passenger car tyre sales in replacement market rose by 10% in the Nordic countries and by 8% in Europe. In Russia, tyre deliveries increased by some 35%. Two consecutive snowy winters in Europe and Russia reduced stocks and boosted winter tyre demand and sales. The capacity cuts carried out in the industry in 2009 and the rapid recovery of demand in spring 2010 led to production running at full capacity at the end of the year and many products being in short supply.

The demand for special heavy tyres continued to rise, following notable growth in the manufacture of forestry and mining machinery. In the replacement market, tyres for other special machinery, such as material handling and agricultural machines, also enjoyed increasing demand. Growth was boosted by higher demand and prices of pulp, sawmill products, metal and food raw materials.

The transportation sector’s recovery boosted the demand for truck tyres in the original equipment installation market and caused some tyre shortages in the replacement market.

Raw material prices rose considerably in 2009 and 2010, with the price of natural rubber more than tripling in the period. Oil-based raw material prices also clearly increased, and some materials were scarce. Tyre manufacturers announced successive price increases to compensate for the rising raw material costs.

Business environment

Business environment

Business environment