Octavian Velcan, general manager of tyre importer Goodyear Dunlop Tires Romania, says the segments most likely to grow on the market are also the most profitable for the company.
"We focused on the most profitable segments on the market, which include premium tyres and run-on-flat tyres (able to run in case of puncture for a few dozen kilometres - i.e.), the latter having an increasingly high potential to develop on the market," says Velcan.
The company saw its profit rise by 40% in the first half, compared with the similar period last year, as a result of the change in product portfolio. At the same time, its turnover amounted to 12.4 million euros (43.8 million RON), rising by some 14%, against the first six months in 2005.
This year's product launches carried out by the company targeted the premium market segment, which includes high quality tyres, as well as run-on-flat tyres.
"The run-on-flat tyres' dynamics is determined to a great extent by the automotive market. The elimination of the spare wheel is embraced more and more by carmakers on the premium market segment," mentions Velcan. The run-on-flat tyres allow automobiles to run for 80 kilometres at most, in case of a flat tyre. They have been initially designed for the luxury cars, but they are gradually extending to the other segments on the auto market.
Velcan thinks the run-on-flat tyres are a niche segment in Romania, which is just starting to take shape.
"The tyre's future will be run-on-flat," states Velcan. Goodyear run-on-flat tyre production in Europe surged last year to 1.7 million units, due to the high demand coming from carmakers, who ask for this type of tyres for the first equipment.
On the domestic market, the economy brands are still dominant, weighting some 60 - 65% of quantitative tyre sales, according to the data provided by Goodyear Dunlop Tires Romania. The medium and premium segments weigh 10-15% each, also in terms of volume. "This is why we didn't abandon the other market segments, where we tried to strengthen our position this year, too," adds Velcan.
The market currently follows the trend from the more developed western countries, namely the increase in premium tyre segment.
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