Further Decline in Finnish Truck Retread Sector

In its annual report the Finnish Tyre Specialists Association Autonrengasliitto has reported a continued decline in truck retread sales in 2016. According to the Association 147,777 truck and bus tyres were retreaded in Finland in 2016 compared to 159,969 in 2015 and 169,064 in 2014, when the marked experienced a mini-recovery in the sector.

One piece of good news for the sector came in the light truck sector, which showed a 6.6% increase to 1648 units. Passenger retreading showed further decline and now stands at 52,054 units, a similar level to 2007. Passenger retreading had enjoyed something of a renaissance in Finland reaching a high of nearly 98,000 units in 2013, but has fallen back since.

An indication of the reason behind the decline in the truck sector can be seen in a sixteen-year price index published by the association, which shows the price of a new Michelin XZE2 in 295 and 315 sizes compared to a COC retread base on both items having a price level of 100 in the year 2000. Whereas in 2013 the price index stood at 151 for the retread and 161 for the new tyre, this had switched to 152 for the retread and only 144 for the new tyre in 2016. This was down to a squeezing of new tyre prices, which manifested itself as a 3-year continuous reduction in the price index figure for new tyres, following 13 years of continuous growth.

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