Tyre maker predicts sports car boom

Michelin predicts that sales of sports cars are poised to take-off over the next five years – and it is busy making tyres to fit them.

The French tyre maker expects sales of the world's fastest cars will increase by a massive 25 per cent – outpacing the rest of the automotive industry over the next half decade.

Specifically, it has forecast that sales of sports cars in Europe will grow by 30 per cent, in North America they will grow by 43 per cent – and the tyre market in China is expected to be five times what it is today by 2016.

China is already the world's biggest car market (it overtook North America last year) and is the second biggest market for premium brands such as Porsche, Ferrari and Rolls-Royce.

Speaking at the launch of its new sports car tyre in Dubai at the weekend, Florent Menegaux, president passenger car and light truck tyres worldwide, said: "Some would say the sports car market is a niche market, but it is a very fast growing niche market. Worldwide sales of premium cars have outgrown the industry in the past year and there's no sign of slowing down."

Michelin already supplies tyres to the makers of the world's fastest cars from all points of the globe, and has just released its fastest road tyre ever, the Pilot Super Sport.

The surge in sales of sports car tyres will mark a strong turnaround for an industry hit hard by the global financial crisis.

As new-car sales halved globally in 2008-2009, so too did sales of original equipment tyres.

Furthermore, sales of tyres to private customers, retailers and wholesalers also slowed (by about 9 per cent) because motorists delayed buying replacement tyres, and retailers and wholesalers decided to carry less stock.

Michelin Vice President in charge of marketing, Gary Guthrie, told the Carsales Network the tyre market has recovered in the 2009-2010 financial year.

"Globally, the tyre market is up about 9 per cent," he said. "We've still got some way to go to return to pre-GFC levels but the worst is behind us and we've come through the recession stronger.

"When the economy is good, people buy new cars. When the economy is really good, people buy new sports cars. A lot of the emerging markets are embracing sports cars in a big way, it's a status symbol.

"Also, with our development work with the manufacturers, we know how many new sports cars are coming in the years ahead and we're gearing up for it. Car enthusiasts are going to be spoiled for choice in the coming years."

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