NEW YORK, Dec 18 (Reuters) - U.S. tire shipments in 2002 are expected to rise due to the high rate of light vehicle production, a rebound in the commercial trucking sector and prospects for modest growth in the U.S. economy, the U.S. Rubber Manufacturers Association said on Wednesday.
RMA said in a report that incentives offered by car companies has resulted in a surge of tire shipments for new vehicle owners by 7.3 percent to 58.5 million units in 2002.
Many car companies, in a bid to boost sales, have offered zero percent financing for those buying new cars.
While shipments for original equipment passenger tires in 2003 are seen staying flat, RMA said they are expected to rise to 59 million units in 2004 as the U.S. economy improves.
"The group projects a stronger growth rate in total tire shipments of nearly 3 percent per year in 2003 and 2004 as the nation's gross domestic product and industrial production index build significant momentum," RMA said in its report.
RMA said another area where they expect steady growth was the truck trailer market.
"As a result, this sector will grow strongly by approximately 8 percent in 2002 to reach a total of 3.7 million units," it said, adding "an even stronger 17 percent annualized growth rate is expected through 2004 as a greater number of trucks are sold to meet economic and industrial growth."
Total tire shipments by then will stand at slightly more than 5 million units.
The RMA is the national trade association for the U.S. rubber products industry. The reports put together by its market analysis committee is compiled by experts from firms who account for 90 percent of all U.S. tire shipments.