The European tire industry is at a critical crossroads, facing mounting challenges that threaten its global competitiveness, the industry association has warned.
Speaking at a reception in the European Parliament, Chris Delaney, the President of the European Tire and Rubber Manufacturers Association and President, EMEA at Goodyear, emphasized the industry's indispensable role in the European economy – but warned that the viability of the sector was at risk.
"Tires are strategic assets that drive the economy and support the mobility of industry and society," Delaney said. "Apart from train travel, all other forms of transportation in Europe rely on the humble tire. Our industry not only keeps Europe moving, but also plays a pivotal role in advancing the circular economy, ensuring vehicle safety, and ensuring Europe's prosperity and connectivity."
But despite the sector’s strategic importance, Delaney said Europe's tire manufacturers are now operating in the most expensive environment globally, grappling with soaring costs for production and distribution. "Tire manufacturing and distribution is a capital-intensive, labor-intensive, and energy-intensive business,” he explained.
"Over recent years, costs have risen significantly, challenging the competitiveness of European manufacturing in our industry."
The challenges we face in maintaining and enhancing the competitiveness of our manufacturing base in Europe are significant, but they are not insurmountable
Adding to the burden are increasingly complex regulatory demands. "We are being challenged to cope with legislation that has grown significantly in both volume and complexity, adding to the increased costs of ensuring compliance in an already punishing inflationary environment," he said.
These pressures are eroding the market share of European-produced tires. Delaney pointed to a concerning trend: imports now represent 30–35% of all tire sales in passenger, truck, and bus segments. "At the current rate of growth, it will not be long before the majority of tires fitted in Europe are imported from outside the EU," he warned.
The road forward
Delaney highlighted the new EU mandate as an opportunity to address these challenges and called for a collaborative approach to sustain Europe's tire industry. "To ensure the continued competitiveness of our manufacturing base in Europe, we need a stable and sustainable supply of raw materials, globally competitive energy prices, fair global competition, and supportive regulatory frameworks," he emphasized.
EU support, he argued, is crucial for driving innovation and advancing sustainability in the sector. "Leveraging digitalization and deploying renewable or recycled materials will lead to more circular, safer, and smarter products and services," Delaney said. These innovations not only promise to enhance competitiveness but also align with Europe's broader goals of sustainability and connected mobility.
Andras Kulja MEP, the host the event, agreed that the EU tire and rubber industry was “more than a manufacturing sector, it is foundational to Europe's mobility, safety and economic resilience”.
He said the sector can play a key role supporting the EU’s ambition to create a circular economy, but acknowledged that “for this goals to be met, we need supportive EU policies”.
“Harmonized regulation would be instrumental in promoting sustainable product design, advancing recycling technologies and enabling cross-border recycling,” the Vice-Chair of the ENVI Committee said. “Such policies will allow us to pursue ambitious environmental goals while keeping our industry competitive.”
Mark Nicklas, the Head of Unit for Mobility in DG Grow said the industry would have the European Commission's support to "really tackle the obstacles of competitiveness”, and emphasized that the new Commission will be developing an action plan for the automotive industry, that will take a "whole value chain approach" looking at everything from raw materials and infrastructure, to automation and data.
While the challenges are significant, Delaney expressed confidence in the industry's ability to overcome them with the right support and collaboration. "The challenges we face in maintaining and enhancing Europe's competitiveness are significant, but they are not insurmountable," he said. "The tire and rubber industry stands ready to play its part, and we look forward to working with Members of the European Parliament, colleagues from European Institutions, Member States, and industry to find efficient solutions."
As Europe grapples with economic, regulatory, and geopolitical challenges, Delaney said the sector's ability to adapt and innovate will be crucial.
"The tire industry keeps Europe moving," Delaney concluded. "Now, we must ensure that it continues to thrive, delivering value to the economy, supporting jobs, and driving sustainable mobility for generations to come."