Nokian Tyres, strong in its core market
Steady foothold in the Nordic countries
Finland, Sweden and Norway accounted for some 45% of the net sales of Nokian passenger car tyres in 2010. The company is the market and price leader in the Nordic countries. Annual sales in these countries total some 10 million tyres for passenger cars and vans, 6 million of which are winter tyres. The markets usually grow around 1–3% a year, and there are around 80 competing brands. The countries also have legislation that requires winter tyres to be used during the winter months.
Growth in Russia
Nokian Tyres is the market leader and the biggest manufacturer of premium tyres in Russia. The company’s plant, located near St. Petersburg and equipped with the latest technology, came online in spring 2005. Thanks to low labour, raw material and energy costs, tyre manufacture is much more economical in Russia than in Finland and other Western European countries. Running operations in Russia also ensures that the company is allowed tax concessions and avoids import duties, which gives it a great advantage over its main competitors.
In 2010, the share of Russia and the CIS countries rose to 21% of the net sales of Nokian Tyres. The company aims to further strengthen its market leadership in premium winter tyres and increase its market share in summer tyres. The country has no winter tyre legislation, but the climate conditions in Nokian Tyres’ operating region require the use of winter tyres during the winter months.
Central Europe, another growth area
Nokian Tyres customises its tyres to meet the needs of consumers in different market areas. With tyre markets continuously expanding and winter tyre legislation becoming more common, Central Europe has become one of Nokian Tyres’ most important growth areas. The friction tyres designed for Central and Eastern European winter conditions, as well as the summer tyres offered in the region, differ considerably from the products sold in the company’s core markets. The versatile winter tyre range also includes many different types of SUV and light truck tyres, as well as run-flat products.
Outside its main markets, Nokian Tyres also focuses on countries where it can benefit from its special skills in northern conditions. These areas include the Alpine region and North America.