Compagnie Générale des Établissements Michelin Société en commandite par actions (OTCPK:MGDDF) Q1 2024 Earnings Conference Call April 24, 2024 12:30 PM ET
Company Participants
Yves Chapot - GM and CFO
Conference Call Participants
Michael Jacks - Bank of America
Martino De Ambroggi - Equita
Jose Asumendi - JPMorgan
Christoph Laskawi - Deutsche Bank
Ross MacDonald - Morgan Stanley
Sanjay Bhagwani - Citibank
Michael Aspinall - Jefferies
Yves Chapot
Thank you. Good evening, ladies and gentlemen. Good afternoon for those who are listening us from North America. So, I'm very pleased to have the privilege to present you our sales performance for the First Quarter of 2024.
And I will jump directly on the market evolutions. As the selling market developed slightly, driven by replacement demand with -- and you will see that in detail, the truck tire market restarted by Asian imports into North America ahead of expected tariff hikes.
Passenger car market, so I'm just on the Slide 3, grew by 2%. They were basically flat at original equipment, with a contrasted situation between the China market grew by 4%. North America by 6%, with the replenishment of vehicles that inventory -- dealer inventory during the quarter, and with basically a flat European market and dropping market in Asia out of China, particularly Japan and Korea.
On the other end, the replacement market for passenger car tires grew by 3%, also led by your China plus 6%, U.S. -- North America plus 8%. With North American data, there is some selling effect import due to the reduction of customs duties from tires have imported from Thailand.
The truck and bus market grew by 2% with negative original equipment minus 7%, so 2% without -- excluding China. And again, excluding China, we decreased by 7%, mostly driven by Europe and North America and both market decreased by 16% over the quarter, it was anticipated as particularly in the U.S. there was implementation of a new regulation that lead towards dissipated touches in the first half of 2023.
And on the replacement market grew by 4%, mostly driven by South America plus 8%, Europe -- US plus 18%. And here clearly, we know that the U.S. administration is going to implement tariffs from -- for truck tires imported from Southeast Asia. This regulation would probably be decided during the second quarter, but with a retroactive effect on April 1st. So, that's why there was a surge in the selling market in the -- in the US market for truck tire in the first quarter. And the European market was doing down by 4%.