Autos & parts (AO) | Mixed May tyre data: Accelerated OE weakness, sustained positive RT

Research evidence excerpt

Autos & parts (AO) | Mixed May tyre data: Accelerated OE weakness, sustained positive RT

Connecting the dots

Release date: 23 June 2026

Thomas Besson

Head of Autos Research

+33 1 70 81 57 53

Autos & parts tbesson@keplercheuvreux.com

Europe

Mixed May tyre data: Accelerated OE weakness, sustained positive RT

Key points:

Michelin released last night its estimated May tyre market data. They show accelerated weakness for the month in Original

Equipment (OE), both for Passenger Tyres (PT) and Truck Tyres (TT), while global replacement (RT) figures remain positive and in-

line with YTD trends. Americas figures are weak again in all segments in May (and YTD).

The data remain consistent with Michelin’s 2026 market demand outlook, suggesting moderate replacement growth for the year

with softer H1 trends for both PT and RT. Input costs should support lower H1 P&L costs for the industry and should support H1

profits for tyre makers as price mix holds. Indexation clauses should progressively reduce this tailwind over the coming months.

Tyre stocks remain attractive in our view despite their large outperformance YTD on 1/ RT visibility vs volatile OE trends, 2/ OEMs’

pricing trends, 3/ an overall inflationary environment in which tyre makers demonstrated their pricing power historically, 4/ A

more stable competitive environment and positive link to electrification. Tyres remain our preferred segment in Autos. Conti and

Pirelli are part of our Most Preferred names.

May PT OE weak in all regions, China strength supports gains for PT RT globally

European and American OE (Original Equipment) March passenger tyre (PT) volumes were down 12% (-2% YTD) and down 6%

(down 2% YTD) respectively, against easy comps in Europe and impacted by the weather in the US.