The Truck Tyre market is expected to grow at the average rate of 2.1% per year between 2013 and 2017, going from the 141 million pieces of 2013 to 153 million pieces in 2017. Pirelli key markets – South America and MEA – are due to outgrow the overall average with an average rate of 3.7% and 2.4%, respectively.
In the Truck market, Pirelli is by far the leader in South America and North Africa and ranks among the major players in the Middle East.
A selective geographic positioning, the offering of technologically advanced products with the new 01 Series and 100% low-cost production capacity allow Pirelli Industrial Business to achieve a profitability level among the highest in the industry, with an estimated Ebit margin greater than 13% in 2013.
Pirelli aims at consolidating its leadership in:
- LatAm: Through the introduction of 01 Series, a renewed offering of fleet services and a wider market coverage, to be achieved by expanding the distribution network
- MEA: Through an extension of the product portfolio, the introduction of Pirelli Fleet Solutions, the development of the sales force and a higher integration with dealers
In Europe, a strong improvement of profitability is envisaged due to the spreading of 01 Series and the use of low-cost sources for the whole production effort.
Pirelli target in Asia Pacific is to improve its positioning by co-operating with new distributors, extending the retail network, saturating plants and search for a partnership.
Levers for value creation:
- On-going technological innovation, with the introduction of 11 new product lines
- Construction of a global production platform locally, adaptable to customers’ needs
- Introduction of solutions for cost control and fleet monitoring, such as Cyber Fleet
- Lean organization and execution of an industrial efficiency program worth approximately 40 €/mln between 2014 and 2017