The French tyre manufacturer, Michelin has seen a good growth in its sales according to its recently released statement. In the financial statement posted last week, Michelin has said that it saw a surge of 10% in its sales that stands at 5.6 billion euros during the first quarter of 2017. However, this was mainly possible due to the rise in the demand for replacement tyres. Michelin Tyres recorded the highest surge in the sales of speciality tyres that increased at the rate of around 15%. Truck and bus tyres recorded a rise of about 6%, while the passenger and light vehicle tyre sales increased around 10%.
The company is hopeful that the trend of 2016 will continue in 2017 too in terms of sales of tyres. However, it is expecting the highest sales in the first six months of 2017. The reason given is that most people are buying tyres before the announced price increase by Michelin that will be effective by the April end.
Moreover, it is to be noted that due to rising raw materials cost the profit margins have decreased for major tyre makers across the world. But Michelin has said that it would manage the prices effectively during the rest of the year.