With a 64% share of consolidated sales (PY: 61%), the automotive industry – with the exception of the replacement business – was Continental’s most important customer group in fiscal 2023. The Automotive group sector accounted for the lion’s share, but the Tires and ContiTech group sectors also generated significant sales figures in this market segment.
The second-biggest market segment for Continental was the global replacement-tire business for passenger cars and commercial vehicles, with 25% of total sales in fiscal 2023 (PY: 28%). Because passenger cars and light commercial vehicles make up a considerably higher share of the replacement-tire business, their development is particularly important to our economic success.
The third-biggest market segment for Continental was the global business with industrial customers and spare parts from the ContiTech group sector, with around 9% of total sales (PY: 9%).
Continental’s biggest sales region in the reporting year was still Europe, which accounted for 48% of sales (PY: 47%), followed by North America at 27% (PY: 27%) and Asia-Pacific at 21% (PY: 22%).
Development of new passenger-car registrations
In 2023, there was a significant rise in the number of newly registered cars in the major international automotive markets. The availability of many car models improved compared with the weak previous year. These positive developments more than offset the ongoing subdued demand resulting from geopolitical and macroeconomic uncertainties and high consumer prices.
According to preliminary data from the German Association of the Automotive Industry (Verband der Automobilindustrie, VDA), 12.8 million new vehicles were registered in the European car market (EU27, EFTA and the United Kingdom) in 2023, 14% more than in the previous year. Passenger car sales rose by 16% in Japan and by 12% in the USA. Brazil recorded an increase of 11%.
In China – the world’s largest car market – the VDA registered record sales in 2023. The number of newly registered vehicles rose by 11% to 25.8 million units, outperforming the overall Chinese economy, which lost momentum as a whole. In India, sales of new vehicles rose by 8% to 4.1 million units in 2023.
According to preliminary data from car manufacturer Renault, new-car registrations in 2023 also increased significantly year-on-year.
Development of production of passenger cars and light commercial vehicles
The stabilization of supply chains – which were significantly disrupted in the previous year due to the war in Ukraine and the pandemic- related lockdowns in China – was the main reason for the substantial increase in the production of passenger cars and light commercial vehicles weighing less than 6 metric tons in 2023. Greater semiconductor capacity also contributed to the rise in production. The strike in the US automotive industry, which lasted several weeks, had no significant impact on the development of global vehicle production.
According to preliminary data, Europe recorded a 13% rise in the production of passenger cars and light commercial vehicles in the reporting year. North America and China increased their production by 10% in 2023.
According to preliminary figures, global production for 2023 rose by 10% to 90.3 million units.
Development of production of medium and heavy commercial vehicles
The production of medium and heavy commercial vehicles weighing more than 6 metric tons grew significantly year-on-year in our core European market in the reporting period thanks to stabilized supply chains. Production increased in Eastern and Central Europe in particular, despite the ongoing war in Ukraine. The improved availability of materials and pent-up demand also resulted in a significant increase in production in Western Europe. According to preliminary data, overall production volumes rose by 14% year-on-year.
In our other core market of North America, good economic growth and pent-up demand led to an ongoing upturn in the production of medium and heavy commercial vehicles by 8%, according to preliminary figures.
Development of replacement-tire markets for passenger cars and light commercial vehicles
In both Europe and North America, demand for replacement tires initially declined in the year under review. The effects of inflation resulted in significant purchasing restraint among consumers in the first half of the year in particular, and the levels of stock among dealers led to a reduced need for stockpiling. In North America, a strong second half of the year compensated for the weak start, while the replacement-tire markets in Europe were down year-on-year overall. By contrast, the Chinese market grew significantly.
Sales volumes of replacement tires for passenger cars and light commercial vehicles weighing less than 6 metric tons fell by 4% in Europe (excluding Russia) for 2023 as a whole. In North America, demand in the year under review was on a par with the previous year. Conversely, sales volumes in China rose by 12%. According to preliminary data, global sales volumes of replacement tires for passenger cars and light commercial vehicles rose by 1% in the reporting year.
Development of replacement-tire markets for medium and heavy commercial vehicles
In our core markets of Europe (excluding Russia) and North America, preliminary data indicates that year-on-year demand for replacement tires for medium and heavy commercial vehicles weighing more than 6 metric tons fell by 11% and 15%, respectively, in 2023.
Development of industrial production
In addition to vehicle production and the replacement business for the automotive industry, the development of various other industries is crucial to the success of our ContiTech group sector. ContiTech products are used in particular in equipment, machinery and vehicles for railway transport, mining, agriculture and other key industries. As well as the general development of gross domestic product, the development of industrial production is therefore regarded as an important indicator for ContiTech’s business with industrial customers.
In the reporting period, industrial production in the eurozone continued to be affected by increased costs and was down year-on-year as a whole. In the USA as well, industrial production saw only a slight increase in 2023, remaining more or less constant year-on-year. China, on the other hand, recorded significant growth in industrial production compared with the previous year, which was influenced by lockdowns and other factors.
| Changes to vehicle production, the tire-replacement business and industrial production in 2023 (compared with 2022) | ||||
|---|---|---|---|---|
| Passenger cars and light commercial vehicles | Vehicle production | Tire-replacement business | ||
| Europe | 13% | -4% | ||
| North America | 10% | 0% | ||
| China | 10% | 12% | ||
| Worldwide | 10% | 1% | ||
| Medium and heavy commercial vehicles | Vehicle production | Tire-replacement business | ||
| Europe | 14% | -11% | ||
| North America | 8% | -15% | ||
| Industrial production | ||||
| Eurozone | -2.6% | |||
| USA | 0.2% | |||
| China | 4.4% | |||
Preliminary data.
Sources:
Vehicle production: S&P Global (Europe with Western, Central and Eastern Europe incl. Russia and Türkiye).
Tire-replacement business: LMC International Ltd. (Europe with Western, Central and Eastern Europe (excluding Russia) and Türkiye).
Industrial production: Bloomberg.
