In the two-wheeler tyre segment, the worldwide motorcycle leisure and commuting market is expected to see a 3% CAGR between 2019 and 2023. Also expressed as a baseline of 100 units in 2019, the market shrank 10% last year due to the pandemic, and is expected to rebound to 98% of 2019 levels by the end of this year. This is attributed to an expected 10% increase in the use of bicycles and scooters by 2030, according to Michelin.
In terms of passenger vehicle and motorcycle tyre trends, volume is expressed as a percentage of the 100% baseline from 2019, which is the year before the pandemic. The OE (original equipment) world market for passenger car tyres is expected to see a 0.5% compounding annual growth rate (CAGR) from 2019 to 2023, while the replacement world market is expected to record a 0.7% CAGR over the same period.
A similar goal has been set for logistics, in which Michelin aims for a 15% reduction in CO2 emissions by 2030 compared to 2018. Meanwhile, the group also aims for 70% of its suppliers in its supply chain to have ‘ambitious, science-based reduction targets by 2024. Across its various scopes of manufacturing, logistics and supply chain, Michelin is aiming for carbon-neutrality by 2050.
Michelin has set out to attain ‘full circularity’ of its products, or to reach 100% use of sustainable raw materials in by 2050, and to reach 40% by 2030. As of 2020, the tyres used in MotoGP – for which Michelin is the sole supplier – already feature a 40% composition of renewable materials, said the company.
Costs resulting from negative externalities such as carbon emissions, along with water and solvent use are being calculated, and the Michelin Group has committed to reducing these by around 10%, from around 330 million euros (RM1.62 billion) to 300 million euros (RM1.48 billion) in 2023, it said.
