At first sight, the statement of the President of the Hungarian Tyre Association (HTA) may seem surprising, but Mr. Péter Morenth’s reasoning is very logical. He has been the President of the HTA since November 2021, but has been involved in the work of the Association since its inception, as its Executive Director. He understands the industry he represents, as well as the motivations of consumers. In our kick-off interview, we discussed the future of tyres and mobility, the industry’s achievements and the impact of the EPR.
The Hungarian Tire Association (HTA) was registered by the Budapest Court of Justice 12 years ago, and the Hungarian professional organisation was officially established with the participation of seven international tyre companies with manufacturing capacity and representation in Hungary. You are in your teens. Where is the industry you represent today?
The tyre industry is one of the most dynamic sectors of the Hungarian economy. In Hungary, seven companies of the industry – Apollo, Bridgestone, Continental, Goodyear, Hankook, Michelin and Pirelli – are represented by independent wholesale units, 4 of them have domestic production capacity and are continuously developing. In 2022 – last year’s figures are not yet available – 34.1 million passenger and truck tyres will be produced in Hungary. This is already a significant achievement on an international level: in 20 years, Hungary has moved from 35th to 15th place in the top list of tyre-exporting countries. The number of people employed in the sector is steadily increasing: currently, it is around 6,800 directly and more than 15,000 indirectly. The members of the association contribute more than 2.5% of the national GDP. The value of domestic sales and exports in the sector will exceed HUF 600 billion in 2022. Meanwhile, as they say, there was “everything”: Covid, war, inflation. The strength of the industry is that manufacturers are looking ahead: responding to the turbulence by increasing efficiency, innovating and streamlining production processes. It’s been a long time since there was a real “year of peace”, but that’s not typical of the competitive sector anyway. We are working, we are doing our job.
Mr. Péter Morenth, President of the Hungarian Tyre Association
So the HTA has become a real success story. Who among the founders is still active in the association today?
The presidency of the HTA has changed completely in 12 years, and now the second/third generation is working with me for the Association. Today, it is natural that there are also women involved in the work of the board, Melinda Topolcsik, Managing Director, represents Bridgestone Tatabánya Production Ltd. It is a professional success and recognition of the last 12 years that Csaba Lantos, Minister of Energy, asked the HTA to participate in the EPR* Award Council as a representative of tyre manufacturers. (*From 1 July 2023, the Hungarian waste management regulations have been significantly changed, with the introduction of the Extended Producer Responsibility (EPR) system. Products that fall under the scope of the EPR (Extended Producer Responsibility) require mandatory continuous registration. The tariff council is a consultative body of the Minister and is responsible for providing professional support to the Extended Producer Responsibility tariff preparation activities of the Hungarian Energy and Utility Regulatory Office.)
EPR was one of the key words of 2023. How will this affect the industry?
Basically, I think the direction is right, and the regulators can rely on our suggestions and comments to fine-tune the detailed rules. The collection and recycling of used tyres is in the interest of all of us, and for our members it is not just a slogan to be as environmentally and socially responsible as possible. I am proud that the members represented by the HTA not only do not need to be ‘nudged’ towards developing greener technologies than we currently have, but are also at the forefront of R&D. We have ambitious targets for producing 100% recyclable tyres, for ensuring our energy use is from sustainable sources and for reducing our environmental footprint in general. Without tyres, mobility today is unthinkable. We may be rolling on different wheels in ten or twenty years’ time, but as far as we know today, we cannot imagine motoring, freight transport or even air transport without wheels and tyres. The interests of the large companies that are members of the HTA are fundamentally the same as society’s: a wide range of modern and affordable products, produced with the least possible impact on the environment. This is what we are working towards.
You say “available”. Does that mean cheap?
No, not necessarily, the formula is more complex. The same applies to tyres as to almost any other industrially produced product: you have to look at the price/value ratio. A remarkably cheap product always turns out to be missing one of its components. A tyre is not a black rubber band; the proportion of ingredients, the quality, the sophistication of the manufacturing process, the pattern and so on all have an impact on the final product. In our press materials we regularly draw attention to the fact that our cars are in contact with the ground on four palm-sized surfaces. What a tyre can do is most clearly demonstrated in a crisis: if, during a braking manoeuvre, 30 metres is enough to stop instead of 32 metres, I may have saved a life. Noise levels and rolling resistance are also important – the latter has a significant impact on fuel consumption, for example – and it is no coincidence that it is mandatory to include this information on the EU label affixed to new tyres. Pictograms on the side of the vehicle or other official documents can also help to decide which tyre is ideal for a particular consumer. Since its inception, the HTA has been committed to providing consumers with as much useful information as possible about the tyre industry and the products it manufactures, and our website, press releases, radio spots and social media pages are all about this.
The HTA is also a lobby organisation in a good sense. Can you give us a specific idea of what you are trying to achieve?
We want to clarify the seasonal tyre regulations (winter and summer), we want to see more emphasis on tyres in driver education and we want to see tyre-related questions included in the technical test. We strongly support the redefinition of the concept of tyres in the Highway Code and the need to set new minimum tread depths (3 mm for summer tyres and 4 mm for winter tyres).
The energy price boom of recent years and the unprecedented inflation have also had an impact on the new tyre market. Consumers have raised their eyebrows, and Chinese manufacturers have come up with the tried and tested recipe: products of as yet unknown brands, but in many cases undeniably cheap. The American and German press are less shy than their domestic counterparts: in many cases, they explicitly warn motorists against choosing unknown Chinese products. What do you recommend for someone who wants to buy a new set of tyres, say, in time for the spring tyre change?
I would avoid generalising, but in fact the solution is there in my previous answers: strikingly cheap products are at least a cause for suspicion. There are no miracles. When I look for a tyre, I typically read tests, check the energy certificate and look at the social embeddedness of the manufacturer: whether they have a local factory or at least a serious representation, where the tyre is supplied from, in what context it appears in the news. It’s also worth looking at racing news: in rallying or Formula series, extreme conditions have to be met, which can only be achieved at the cost of very serious R&D work. Those who succeed there gain experience from which ordinary drivers can benefit. It is not only tyres that are ‘trickling down’, but also everyday life; there is a reason why the automotive industry is crowded around the race track: that is where the competition is fiercest and the results of development work can be measured immediately. To come back to your question: as a family man, I choose tyres I can trust. In the car, I often have family members travelling with me. I am not going to risk their physical safety for a few thousand forints of savings, not to mention the car’s paintwork!
Would you even consider buying a four-season tyre?
Today, clearly yes, but the answer is more complex than that. For those who use their car mainly in the city in winter, for shorter distances and who prefer public transport in extreme winter weather conditions, a four-season tyre could be a good choice. As I said: this is the essence of the R&D work of HTA members. We want to create a better, more liveable world. Obviously there is a strong consumer demand, many people do not like the spring-autumn change of tyres and wheels. Today’s four-season tyre patterns and compounds have already reached a level where we can safely recommend them. But if you’re a regular mountain hiker or skier, it’s still worth investing in a full winter set and don’t leave your snow chain at home! It’s also worth considering that while the winter set is being used, the summer set is ‘resting’, not wearing out, and therefore lasting longer. And one more thing: the concept of a four-season tyre does not mean that they are completely maintenance-free. In addition to the correct pressure rating, you also need to make sure that the tyres are rotated and centred to ensure even wear, and that they need to be replaced over time.
Since its inception, the HTA has been a member of the European Tyre and Rubber Manufacturers Association (ETRMA), the central association of the European tyre industry. What does this mean in practice?
Road safety is an issue that affects virtually everyone. In order to promote this, ETRMA supports a range of initiatives and counts on the professional opinion and support of its member countries. To list but a few: Access to In-vehicle Data, where it is essential that the industry is given the necessary legislative input; Tire Abrasion, Euro 7/VII and Microplastics Mitigation; Deforestation Regulation, where discussions are ongoing between the European Commission and the Parliament and EU Member States. There is an EU initiative called the ESPR (Ecodesign Directive for Sustainable Products), which the tyre industry welcomes and wishes to contribute constructively to, but I can also mention the Road Safety Package initiative on modernising the rules on driving licences. It is not certain that these initiatives, which we also support, will make the daily news, as it is up to the professionals to work out the details and put them into practice, but we will all enjoy the results. I am glad that you have just mentioned our status as a ‘lobby organisation’. In our understanding, this means fighting for socially important goals. In the second half of 2024, Hungary will hold the rotating presidency of the EU, which for the HTA means that we will use the attention we are receiving to step up our efforts on these issues.
You are one of the few professionals who have been involved in the work of the HTA since its foundation. What motivates you after 12 years?
I love my job. On the one hand, it is an incredibly exciting and rapidly developing field, the results of which are visible in our lives in a short time. On the other hand, I believe in the power of the word, in the benefits of education: I am proud that over the last decade or more we have made motorists more aware of and engaged with tyre choice and that everyone benefits. In 2019, the European Union revised the General Safety Regulation (GSR), making a number of active safety systems mandatory for new cars from July 2024, and the list is expected to grow. Allow me to highlight one device: tyre pressure monitoring systems not only reduce the risk of an accident, but also the vehicle’s fuel consumption. The EU expects that by 2038, 25,000 deaths and 140,000 serious injuries will be avoided. Can you imagine all these plans without modern tyres? I want to see the future we are working on together – manufacturers, professional organisations, road users. Everyone is involved in this project.
Gabor Rozsnyai