Brussels, 28 September 2026 – The European tyre industry plays a strategic economic and social role far beyond its direct footprint. It also illustrates the wider competitiveness challenge facing manufacturing in the European Union. A new Oxford Economics study highlights the sector’s dependence on imported materials, growing exposure to imported finished products and the need to retain advanced production and innovation capacity in Europe.

The study, The Critical Importance of the EU Tyre Industry, identifies three principal findings:

* The economic stakes extend much further than tyre manufacturing. EU-produced tyres potentially enabled sectors such as freight, agriculture and passenger transport, directly generated €1.5 trillion in GDP (9% of EU GDP) and employed 30.5 million people (13% of EU employment).

* The share of imported tyres is increasing in Europe. In 2024, 40% of newly fitted tyres used in the EU were imported.

* European tyre manufacturing is exposed at both ends of its value chain. Imported intermediate inputs account for 11.9% of EU tyre production value, compared with an EU economy average of 7%. The EU is fully dependent on imports for natural rubber.

Adam McCarthy, Tyres Europe Secretary General

“Tyres are technology-intensive products that play a critical role in vehicle and people safety. Tyres Europe believes the findings strengthen the case for an industrial strategy that recognises the value of retaining the capacity to manufacture advanced finished products in Europe. A strong EU tyre manufacturing base reduces reliance on external suppliers and helps build a more resilient, competitive automotive value chain.”

Pete Collings, Oxford Economics Managing Director

“Europe’s tyre industry is far more than a manufacturing sector: it is a critical enabler of mobility, trade and wider economic activity. Our analysis shows that EU-produced tyres support hundreds of billions of euros in GDP and millions of jobs across key customer sectors, while the industry itself depends on complex global supply chains. The findings underline the economic value of maintaining a strong European tyre manufacturing base.”

The full study is available at: LINK (https://tyreseurope.org/industry-and-competitiveness/tyres-keep-europe-moving)

For further information and to arrange interviews, please contact communications@tyreseurope.org.

ABOUT ‘THE CRITICAL IMPORTANCE OF THE EU TYRE INDUSTRY”

The Critical Importance of the EU Tyre Industry is an independent Oxford Economics study commissioned by Tyres Europe.

Why examine tyres?

Tyres are rarely prominent in discussions about European industrial policy. However, they provide a practical example of the connections between access to materials, manufacturing capacity, competitiveness, international trade and the functioning of the wider economy.

Tyres are essential to passenger mobility, freight, agriculture, construction, aviation and public services. Their economic importance is therefore not limited to the size of the tyre-manufacturing sector itself: it also relates to the activities that depend on the reliable supply and performance of tyre-equipped vehicles and machinery.

They are also technologically complex products. A tyre can contain more than 200 components and must balance safety, durability, energy efficiency and environmental performance. Tyres Europe members operate more than 70 production facilities and over 20 R&D centres in Europe and invested €10 billion in research and development between 2017 and 2023.

What does the study examine?

The Oxford Economics analysis follows the tyre value chain from upstream inputs to downstream economic activity. It considers:

* the production, export, import and use of tyres in the EU;

* the economic footprint of immediate customer sectors potentially enabled by EU-produced tyres;

* EU tyre manufacturers’ reliance on imported materials and intermediate inputs;

* the scale of major downstream sectors reliant on tyre-equipped vehicles and machinery; and

* the potential economic consequences of a hypothetical disruption to natural-rubber and tyre supply.

How to interpret the study

The report contains three different types of evidence:

* Reported economic and trade data, including EU tyre production, imports, exports and sectoral economic activity;

* Oxford Economics estimates, including the origin of newly fitted tyres and the immediate customer-sector footprint potentially enabled by EU-produced tyres; and

* A hypothetical disruption scenario, examining how a severe natural-rubber supply shock could affect tyre production and the wider economy.

The scenario is designed to examine transmission channels and potential consequences under a specified set of assumptions. It is not a prediction that such a disruption will occur.

The scenario analyses how a potential shortage of rubber, and consequently tyres, could have significant and widespread macroeconomic impacts, highlighting the criticality of the sector.

Oxford Economics drew on sources including Eurostat, OECD data, information provided by Tyres Europe members and its own economic modelling. The study was commissioned by Tyres Europe and prepared independently by Oxford Economics.

The full study and detailed methodology are available at: LINK (https://tyreseurope.org/industry-and-competitiveness/tyres-keep-europe-moving)

ABOUT TYRES EUROPE

Tyres Europe represents 14 corporate members whose global sales account for 70% of the worldwide tyre market, including 8 of the top 10 industry leaders. Collectively, these manufacturers maintain an extensive presence in the European Union (EU) and candidate countries, operating over 70 production facilities and more than 20 R&D centres. In total, the tyre sector supports nearly 500,000 jobs across the EU.

ABOUT OXFORD ECONOMICS

Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modelling to UK companies and financial institutions expanding abroad. Since then, we have become one of the world’s foremost independent global advisory firms, providing reports, forecasts, and analytical tools on more than 200 countries, 100 industries and sectors, and 8,000 cities and regions.

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