Strategy by Business Units: moto


Market overview

The Motorcycle tyre market is expected to grow at the average rate of 6.3% per year between 2013 and 2017, up to approximately 393 million pieces. For the Premium segment, the annual growth rate is likely to be more than double, at +13.3% on average, accounting for around 6% of the global market in 2017.


Strategy

Pirelli is known to Moto Business with two Premium Brands, Pirelli and Metzeler.

Targets in the Industrial Plan: consolidation of technological leadership and expansion to new fast growing markets. Namely:

  • Europe: Strengthening our leadership in the Premium segment by means of technological innovation, strong commercial presence and closer vicinity to end consumers
  • Nafta: Ranking first or second in all major segments by extending the distribution network and implementing our digital strategy
  • LatAm: Driving technological development in the Premium market with a renewed sales strategy and a more intensive use of our proprietary retail chain
  • APAC and MEAI: Establishing a strong commercial presence and improving Brand awareness

Levers for value creation:

  • Steady commitment to research and substantial product innovation: 21 new products in 2017, designed according to the peculiarities of each market
  • Streamlining production processes, like with the new Design-to-Cost process for Radial Tyres in Brazil and the Hybrid Building Machine in Germany
  • Enhancement of the sales and distribution network to cover markets more pervasively
  • Strong efficiency plan particularly focused on de-complexity and SG&A reduction.


2013-2016 Target

 


 

Last revised: 19 Dec 2013