Tire Manufacturing in European Union: Market Size, Businesses & Forecast 2026

The Tire Manufacturing industry in the European Union is a critical automotive subsector that supported a total gross domestic product (GDP) contribution of 44 billion EUR and sustained approximately 500000 jobs in 2023 (Oxford Economics for ETRMA). The industry is currently steering through economic headwinds, marked by a 2 percent decline in full-year replacement consumer tyre sales in 2025 compared to 2024 due to persistent inflation and weakened consumer confidence (ETRMA). Additionally, structural transitions are under way as the market faces high domestic production costs and a 17 percent surge in low-cost tire imports recorded in 2024 (ETRMA / Astutus Research).

Industry snapshot

Key public data points

Historical & forecast

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What does the Tire Manufacturing in European Union industry cover?

This industry comprises the manufacture of pneumatic and solid rubber tyres for passenger cars, heavy commercial vehicles, aircraft, agricultural machinery, and mobile equipment, alongside the production of inner tubes and the retreading of used tyres. Formally categorized under Class 22.11 of the NACE Rev. 2 economic classification system, the sector covers both original equipment (OE) manufacturing for automotive assembly plants and aftermarket replacement products. It also spans the logistical recovery networks that collect and treat end-of-life tires to support circular economy initiatives.

• •Spans Class 22.11 under the European Union's official NACE Rev. 2 framework.
• •Excludes downstream activities such as retail sales, tire installation, and mechanical vehicle repairs, which fall under NACE Class 45.20.
• •Covers diverse product categories ranging from standard passenger car summer tyres to specialized agricultural and aircraft casings.

Who operates in the industry and how is it structured?

The European Union tire manufacturing sector is highly consolidated and dominated by a few multinational Tier-1 producers, who operate alongside specialized regional manufacturing facilities. The domestic industry has built a deep economic footprint, investing over 10 billion EUR in Research and Development (R&D) between 2017 and 2023 to drive productivity. However, operators face significant challenges in maintaining their localized industrial footprint due to soaring European manufacturing costs, particularly for energy and raw materials.

• •Sustained approximately 500,000 direct and indirect jobs across the European Union in 2023.
• •Generated an estimated 3.9 million tonnes of end-of-life tyres (ELTs) across Europe in 2024, managed via Extended Producer Responsibility schemes.
• •Supported an active circular economy framework achieving a 97 percent treatment rate for waste tyres across Europe.

What drives demand in the industry?

The demand for new and replacement tyres is highly correlated with aggregate vehicle mileage, consumer purchasing power, and commercial logistics freight activity. Macroeconomic pressures on household budgets have recently altered buying behavior, shifting consumer demand away from premium summer tyres and toward versatile, cost-efficient Car All-Seasons segments. Furthermore, demand in the industrial segment remains heavily dependent on regional manufacturing output and agricultural capital investment cycles.

• •Car All-Seasons replacement tyre sales grew by 14 percent in early 2025, signaling a permanent consumer shift in tire product mix.
• •Subdued regional freight and industrial activity led to a 4 percent decline in replacement truck and bus tyre volumes for the full year 2025.
• •European light vehicle parc (total on-road fleet) expanded by 1.4 percent in 2024, creating a growing baseline for future replacement demand.

Who are the notable companies in the industry?

The European tire market features intense competition, pitting premium European-headquartered multinationals against rising low-cost importers from East Asia and the ASEAN region. This pricing pressure has triggered regulatory anti-dumping investigations by the European Commission to protect Union-based producers from unfair competition. To remain competitive, leading European firms focus heavily on smart tire technologies, low-rolling-resistance rubber formulations, and direct-to-fleet digital services.

• •Compagnie Générale des Établissements Michelin, based in France, led the European landscape with global tire sales of approximately $25.7 billion in fiscal 2024.
• •Pirelli & C. S.p.A., based in Italy, recorded fiscal 2024 sales of $7.3 billion and boasted the industry's highest profitability with a 22.4 percent operating margin.
• •Continental AG, a German multinational, actively leads premium market integration with factory-embedded tire sensors.
• •Nokian Tyres plc, based in Finland, operates as a specialized premium public manufacturer with a major focus on passenger and harsh-weather tires.

What are the recent trends and outlook?

The industry is adjusting to a 'lower gear' economic reality, characterized by flat to declining domestic sales volumes and a surge in foreign imports. A soft consumer recovery in late 2024 did not carry into 2025, leaving replacement tyre inventories elevated and prompting manufacturers to scale back production forecasts. In contrast, original equipment (OE) volumes have shown modest resilience, tied closely to the manufacturing trajectory of electric and hybrid vehicles in the EU.

• •Passenger car and light truck tyre imports into Europe grew by 17 percent year-on-year in 2024 and maintained growth through 2025.
• •Truck and bus tyre imports from Vietnam and Thailand expanded to account for over 57 percent of all non-EU imports by late 2025.
• •Agricultural tire volumes dropped by 4 percent in 2025, indicating delayed equipment upgrades by European farmers.

How is the industry regulated?

EU tire manufacturers operate under a highly sophisticated regulatory framework focused on consumer safety, performance visibility, and environmental circularity. Major compliance considerations include EU tire labeling requirements that rate fuel efficiency and wet grip, alongside strict anti-dumping duties on imported pneumatic tires to protect the local industrial base. Furthermore, impending environmental standards under Euro 7 are introducing direct restrictions on non-exhaust microplastic emissions originating from tire tread wear.

• •Governed by Regulation (EU) 2020/740, establishing strict grading labels for rolling resistance, wet grip, and external noise.
• •Subject to the EU Deforestation Regulation (EUDR), requiring strict origin certification for natural rubber raw materials.
• •Monitored closely by the European Commission, which initiated a major anti-dumping investigation on passenger and light truck tyres from China in May 2025.

Government, statistical and trade sources used for this Claight analysis.

• ETRMA European Tyre and Rubber Manufacturers Association (2024) ·
• Oxford Economics Socio-economic Footprint Study for ETRMA (2024) ·
• European Commission EUR-Lex (2026) ·
• Tyres Europe Quarterly Update (2025/2026)