On November 6, 2013, the Pirelli Group's Board of Directors released the 2013-2017 industrial plan and will continue to focus on the high-end tire market and continue its high-end strategy.
The plan states that by 2016, Pirelli’s sales volume will increase by 44% compared to 2013, and its revenue will increase by 60%. The profit will exceed 15% by 2017, the return on investment will increase to 28%, and the planned investment in the next 4 years will be 1.6 billion Euro. . The industrial goal is to consolidate its leading position in the Americas, Middle East and Africa markets, strengthen its development in the Asia Pacific region and enhance the profitability of the European region.
In view of the prospects for the development of the high-end market, Pirelli determined in 2011 to focus on the development strategy of the high-end market. Even in the context of an international economy with a bad environment, the actual growth rate of the high-end market is also three times faster than that of the non-high-end market, and it has continued to grow. This is due to the high profitability of the high-end market. The high profit rate is recognized as one of the most important factors for Pirelli to achieve a great performance. Overall, high-end tires (sizes equal to or greater than 17 inches) accounted for more than 53% of the car tire business revenue, and contributed more than 80% of the profit, which was 7 percentage points higher than the previous two years.
In the industrial plan announced this time, Pirelli's strategies and actions include: Pirelli will further strengthen its investment in product development. The group's R&D center is located in Milan and has 10 regional centers and 1,400 engineers. In the field of passenger car tires, Pirelli will develop 14 new product lines (including 6 winter tyres), of which 6 will be the original accessory tyres and 8 will be tyres for the replacement tyres market. Some new products will be launched in the global market while others will be launched in the local market. The six product lines will include products for market segmentation, such as run-flat tires, mute tires, etc. In addition to a significant increase in product portfolios, Pirelli will also introduce other technological innovations, including PNCS systems that reduce noise pollution (Pirelli noise elimination systems), and new materials and structures introduced before 2017, aiming to incorporate certain products The rolling resistance is reduced by more than 20%.
In the field of truck tires , Pirelli will release 11 new products in 4 years. Pirelli expects that the truck tire market will grow at an annual rate of 2.1% during the next four years, and production will increase from 14.1 billion in 2013 to 15.3 billion in 2017. In the Asia-Pacific region, the annual growth rate of truck tires and a small number of radial tires will be below 2% during the four-year period. In China, Pirelli will strive to increase factory productivity and develop new partners. This will authorize new distributors in China, expand retail networks, and provide solutions for customers. In addition, Pirelli will also strengthen cooperation with the government and other tire manufacturers to promote the innovation of tubeless tire technology and further promote green tires.
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