European Tyres Market Update (Jul‘26): Volatile End Markets

Research evidence excerpt

European Tyres Market Update (Jul‘26): Volatile End Markets

J P M O R G A N Europe Equity Research

09 July 2026

European Tyres

Market Update (Jul’26): Volatile End Markets

• Noteworthy Developments: 1) Monthly Tyre Data: YTD’26 data shows European Autos & Auto Parts

AC generally weaker OE demand and mixed replacement trends across regions. In Jose M Asumendi

PC & LT, global OE volumes were down (-3%), with declines in Europe, North (44-20) 7742-5315

America, and China, while RTs were up slightly worldwide (+1%) held back jose.m.asumendi@jpmorgan.com

by North America and Europe but offset by strong growth in China (+11%). J.P. Morgan Securities plc

Truck tires show a sharper split: OE sales are down globally (-3%), especially Specialist Sales contact details:

weak in North America (-15%), while RTs are up (+3%) on strength in Europe

Sam Edmunds - Specialist Sales - (+11%) and Brazil (+32%), despite North America’s continued softness. 2) US European Industrials

Monthly Tyre Shipments: According to USTMA estimates, total light and (44-20) 7742-8733

commercial tire shipments in the U.S. fell -6.7% y/y in May’26 (-7.5% YTD). sam.edmunds@jpmorgan.com

The recent -6.7% y/y decline in May shipments was driven by weakness in both

replacement shipments, which were down -7% y/y and OE shipments, which

decreased -5.1% y/y. 3) Jul’26: Continental AG has formally announced the

€4.0bn ContiTech sale to Lone Star, expecting ~€3.1bn net cash inflow, of

which ~€2.5bn is earmarked for a special dividend/buyback combination, the

final step in its pure-play tyre realignment.

• Tyre Spreads (CPI vs PPI): Tyre spreads have started to decline recently

in Europe: Tyre spreads in Europe have worsened in recent months, as

indicated by the latest data.