Ambitious goals, positive data and prospects of strong growth, Pirelli is aiming to become a world leader in the premium sector with its high-performance tyres.
The Premium segment comprises high-performance Tyres for high-market vehicles. Pirelli definition is more constrained than its peers’ and refers to speed codes rather than sizes.Pirelli Premium Tyres are:
- identified by speed codes, W up to 270 km/h , Y up to 300 km/h, Z over 300 km/h
- SUV and Winter, with a speed code higher than H (over 210 km/h)
As for value, Premium Tyres cost double as much as Standard Tyres and are 3 times more profitable.
The increasing number of high-market cars – from Mercedes to BMW and Audi, from Jaguar to Land Rover, from Cadillac to Lexus, to mention but a few – has led to a significant growth of Premium cars in circulation – 9.2% of the global car fleet in 2011 – with a resulting impact on the development of the top-of-the-range Tyre Market. The global market of Premium Tyres, which amounted to 12.1% of the overall market in late 2011, will hit 14.7% in 2015 and grow 3 times more rapidly that the rest of the market .
From a geographic point of view, this growth will occur in all Regions: Europe, which is the main market for Premium Tyres, at approximately 54% of the global market; Asia Pacific, +16.9%, due to the growing number of Premium cars in circulation; and Latin America, +16.8%, where the Premium Market is still at an early stage.
At the end of 2011, the Premium segment accounted for 50% of Pirelli Car revenues and 80% of the EBIT margin of the Car Business Unit.
In terms of market share, Pirelli has 14% of the European Premium Market, due to:
- its cutting-edge technology, achieved through high investments in R&D – over 7% of Premium sales, the highest rate in the Industry;
- its long-lasting partnerships with major Car Makers, from Ferrari to Maserati, from Lamborghini to Bentley, from Audi to BMW and Mercedes
- its strong, world-famous Brand, synonymous with top of the range, high performance, Formula 1.
Being a leading player in those markets where Premium Tyre sales are bound to grow at higher rates, and being set to expand its product range and take targeted actions on its Brand and distribution, Pirelli will consolidate its positioning in the Premium segment, which in 2014 will account for 58% of its Car sales and 81% of the Car Business Unit EBIT.