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German Tyre Market Shows Resilience; Except Retreads

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The German replacement tyre market demonstrated a degree of crisis-resistance during the 2025 financial year, according to data released by the Bundesverband Reifenhandel und Vulkaniseur-Handwerk e.V. (BRV). While overall sales volumes across all product groups declined marginally by 1.9 per cent to approximately 46.6 million units, the sector reported a positive qualitative development.

Michael Schwämmlein, Technical Director at the BRV, noted that the annual business comparison for 2025 indicated an average sales increase of 2.5 per cent and an operating result of 1.6 per cent of turnover, despite rising operational costs.

Truck Tyre Segment Performance

In the commercial vehicle sector, the market showed stronger-than-expected growth. Total lorry tyre sales, comprising both new and retreaded units, reached approximately 2.52 million units, an increase of 2.4 per cent compared to 2024. This figure exceeded industry expectations by 29,000 units.

However, the growth was driven exclusively by new tyre sales, which rose by 3.8 per cent. This surge primarily occurred in the final quarter of the year, as buyers in the premium segment responded to uncertainties surrounding the “Environmental Protection and Safety” subsidy programme.

Schwämmlein explained that the sharp decline in winter and LCV tyre demand was partly due to a “pre-buy effect” in 2024. Following regulatory changes in October 2024, only tyres featuring the “snowflake symbol” are legally recognised as winter tyres in Germany, prompting many fleet operators and tradespeople to replace M+S-marked tyres prematurely the previous year.

Despite average cost increases of 7.3 per cent for personnel and 3.5 per cent for premises, the industry maintained profitability. Total gross profit rose by 5.7 per cent, while turnover from tyre services and general automotive services increased by 4.9 per cent and 9.4 per cent, respectively. Specialist tyre dealers remain the dominant sales channel for the commercial segment, maintaining a stable 90 per cent market share.

Challenges for Retreading

The retreading sector continued to face significant pressure. Sales of retreaded lorry tyres declined by 1.7 per cent in 2025, with market share falling to 24.5 per cent from 27 per cent in 2023. The BRV attributes this ongoing contraction to the influx of low-cost new tyre imports from Asia, which frequently undercut retreads on price despite the latter’s advantages in quality and sustainability.

The lack of political support for the retreading industry remains a concern for the association. Last year, two further retreading operations in Germany ceased activity.

2026 Forecast

The BRV suggests that a reliable forecast for the current 2026 financial year is difficult due to geopolitical instability in the Middle East and its impact on energy prices and inflation.

If market conditions normalise, the association expects a further 1.5 per cent decline in retread volumes and a slight 0.8 per cent decrease in new lorry tyre sales. In the consumer segment, a 2.2 per cent decline is anticipated as all-season growth continues to offset traditional seasonal tyre sales.

“The results show that the service business has been further expanded,” stated BRV Managing Director Yorick Lowin. He emphasised that expanding service turnover remains a critical strategy in a volume-saturated market.

 

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