EU tyre industry seen as critical to jobs, GDP and supply chains

A new Oxford Economics study commissioned by Tyres Europe says the EU tyre industry underpins mobility, trade and wider manufacturing competitiveness far beyond its own factories. The report warns that rising imports and dependence on foreign inputs, including natural rubber, leave Europe exposed at a time when the sector supports millions of jobs and trillions in GDP.

Why it matters: - The EU tyre industry is tied to far more than vehicle parts. It supports freight, agriculture, passenger transport and other sectors that depend on reliable mobility. - The study frames tyres as a test case for Europe’s broader industrial competitiveness and supply-chain resilience. - EU-produced tyres potentially supported €1.5 trillion in GDP, or 9% of EU GDP, and 30.5 million jobs, or 13% of EU employment. - The sector supports nearly 500,000 jobs across the EU directly and through its industrial footprint.

What happened: - Tyres Europe released an Oxford Economics study, The Critical Importance of the EU Tyre Industry, on Sept. 28, 2026. - The report examines the tyre value chain, from upstream materials to downstream economic activity. - The analysis found that 40% of newly fitted tyres used in the EU in 2024 were imported. - The study also found that imported intermediate inputs account for 11.9% of EU tyre production value, compared with an EU economy average of 7%. - The EU is fully dependent on imports for natural rubber.

The details: - The report says tyres are technologically complex products that can contain more than 200 components. - Tyres must balance safety, durability, energy efficiency and environmental performance. - Tyres Europe members operate more than 70 production facilities and over 20 R&D centres in Europe. - Tyres Europe members invested €10 billion in research and development between 2017 and 2023. - The study considers tyre production, exports, imports and use in the EU, plus the scale of downstream sectors that rely on tyre-equipped vehicles and machinery. - Oxford Economics also modelled a hypothetical disruption to natural rubber and tyre supply to test potential economic consequences. - The report says the scenario is designed to examine transmission channels and outcomes under specific assumptions, not to predict an actual disruption. - Oxford Economics said the analysis drew on Eurostat, OECD data, information from Tyres Europe members and its own economic modelling. - The full study is available here. - A detailed methodology is also available here.

Between the lines: - The report argues that Europe’s competitive weakness is not just about factory output, but about control over advanced manufacturing capacity and critical inputs. - The dependence on imported rubber and rising tyre imports point to a value chain that is exposed both upstream and downstream. - The findings strengthen the case for an EU industrial strategy that keeps advanced production and innovation inside Europe. - Pete Collings, managing director at Oxford Economics, said the industry is a critical enabler of mobility, trade and wider economic activity. - Adam McCarthy, secretary general of Tyres Europe, said retaining advanced manufacturing in Europe would reduce reliance on external suppliers and help build a more resilient automotive value chain.

What's next: - Tyres Europe is directing interested parties to communications@tyreseurope.org for further information and interview requests. - The study is likely to feed into debate over EU industrial policy, supply-chain security and manufacturing strategy. - The report’s scenario analysis suggests policymakers should view natural-rubber dependence as a strategic vulnerability.

The bottom line: - Europe’s tyre sector is a small slice of manufacturing with an outsized economic role, and the study says that role depends on protecting production, innovation and input security inside the EU.