Pirelli plans entry into Commercial Vehicle Tire market of North America

United States: The leading Italian tire company Pirelli Tyre S.p.A. is expected to enter the tire market of commercial vehicles by selling tires for trucks and buses in the United States and Canada. The company along with its new subsidiary, TP Commercial Solutions L.L.C., are set to target the new segment.

The decision came as a result of company’s belief of targeting the commercial vehicle tire segment globally rather than region specific, in which they have been engaged till now. Though Pirelli has been successfully testing the fleet on North American-specific long-haul drive and steer tires in US and Canada over a long time now and has recently started some off road tests as well.

Pirelli, for this strategic move appointed, Mr Clif Armstrong as the President of TP Commercial Solutions. Mr Armstrong is believed to be a veteran in the tire industry with more than 20 years of experience in the industry. In the past, he has also been responsible for senior roles in Continental Tire the America’s L.L.C’s truck division.

“Pirelli’s strategy for car and light truck products in North America is focused on premium products customized for the particular needs of the market. With the launch of the commercial truck business, we plan to do the same thing — adapt the excellent technology and leadership of the Pirelli industrial product line to the specifications and demanding requirements of these markets” said Mr Armstrong.

The company is backed by truck tire manufacturing plants located in Brazil, Egypt, China and Turkey. As of now, company plans to source majority of tires for North America from their Brazilian plants. Further, a company official also declared the possibility of obtaining some sizes and types of tires from other manufacturing plants as well.

According to a recent report published by TechSci Research, “United States Tyre Market Forecast & Opportunities, 2020’’, United States automobile market is the second largest automobile market in the world, with a motorization rate (including passenger cars and commercial vehicles) of more than 808 vehicles per 1,000 individuals, in 2014. The country’s tire market is dominated by the replacement tire segment that accounted for more than 80% share in the United States tire market in 2014. The commercial vehicle tire is the second most dominating segment in the United States tire market.

As per TechSci Research, the company is among the top players in the country and this strategic move would further facilitate the increase of market share of the company in the commercial vehicle tire segment. The company plans the launch of a wide range product portfolio in this segment consequently offering an added advantage to the customers to choose from variety of options.