Has the new tyre label had the intended positive impact on the European tyre market?

 

The European Commission DG ENER (Directorate-General for Energy) has entered into a contract with Viegand Maagøe to support their assessment and preparation of an evaluation report on the implementation of Regulation (EU) 2020/740 on the labelling of tyres with respect to fuel efficiency and other parameters.  This evaluation and review is required by Article 15 in the regulation.

Background

Tyre labelling according to Regulation 2020/740 [1] enables customers to make informed choices based on clear indications about the fuel/energy efficiency (rolling resistance), wet grip and other important supplementary information. Tyre labelling can make a significant contribution to fuel/energy savings, while at the same time promoting innovation and investments into the development and marketing of better-quality tyres. By harmonising related requirements at Union level, tyre labelling also benefits manufacturers, industry and the Union economy overall.

The energy label for new tyres set out in the Regulation cover fuel/energy efficiency, safety and noise performance and grip on snow and ice capability apply from 1 May 2021. New C3 tyres (commonly used on trucks and buses) must also be labelled.

 

The label follows the well-known colour-coded classification system used for appliances such as dishwashers and refrigerators, albeit with only 5 different classes available for rolling resistance and for wet grip, and 3 classes for external rolling noise. Rolling resistance is an indicator of the tyre’s energy efficiency, showing potential benefits in terms of lower fuel consumption and extending the distance that can be covered by vehicles between refuelling or charging points, while the wet grip measurement is an important measure of safety. Improvements in the performance of these aspects can affect other performance parameters. For this reason, the performance of both classes is displayed in the label with equivalent visibility. Noise may be affected as well

Scope

This study will assist the Commission in the preparation of a report that evaluates the implementation of Regulation (EU) 2020/740 on the labelling of tyres with respect to fuel efficiency and other parameters. The label sets out requirements for tyres used on passenger cars (C1), vans (C2) and trucks and buses (C3). This evaluation of the impact of the label is required by Article 15 in the regulation.

 

Methodology

The report prepared under this contract will assess at least five topical areas of interest to the Commission and listed explicitly in Article 15 of the Regulation:

  1. How effectively has the Regulation encouraged end-users to choose higher-performing tyres? This assessment should take into account the impact of the Regulation on business, fuel consumption, safety, greenhouse gas emissions, consumer awareness and market surveillance activities;
  2. What would be the cost and benefit of requiring independent third-party verification of the information provided on the tyre label?  This assessment should take into account experience gained in the broader framework provided by Regulation (EU) 2019/2144 (repealing Regulation (EC) No 661/2009 referred to in Article 13);
  3. Are there any modifications / amendments to the Annexes of the regulation that would be warranted?  This assessment should seek to identify areas that are unclear or perhaps carry an excessive degree of uncertainty, and propose remedies for these.
  4. Are there any modifications / amendments to the Annexes that would boost the label’s effectiveness, or would help to exploit the potential of the EPREL database while reducing administrative burden on the tyre business? This assessment should considering not only tyre suppliers, but also other stakeholders, including in particular;
    • Vehicle manufacturers, required to comply with legislation regulating green house gases and other emissions, and selecting original equipment tyres to be mounted, because tyres are a relevant contributor to energy use  and emissions; and
    • Public or private procurement officers who specify purchasing of replacement tyres for fleets, as the green Taxonomy explicitly refers to the product database (EPREL) for eligible tyres (i.e. those in the highest or two highest classes of the label);
  5. Based on EPREL and other available market data, determine whether there any technological or market developments in the tyres market that could affect the different performance classes for fuel efficiency, wet grip and noise; and what are considered to be the “best available technologies and prospects for future innovation.

 

The project has three specific tasks that are to be undertaken:

 

Task 1: Assistance gathering information on the experience with implementation

Task 2: Assistance providing input to the report

Task 3: Specific relevant aspects of the report

 

Task 1: Assistance gathering information on the experience with implementation

Viegand Maagøe will gather data to assess the following:

  • Assess the relevance and reputation of the tyre label in guiding purchasing decisions towards more energy-efficient, safer and quieter tyres (both final consumers and bulk purchasers).
  • Assess the impact of the label on transportation fuel (gasoline, Diesel, electricity) consumption and greenhouse gas emissions.
  • Assess the utility and relevance of the EPREL database in helping to guide the selection of the best tyres;
  • Assess the relevance of the EPREL database for vehicle manufacturers using tyre performance data;
  • Assess the technological progress in the tyre market, stimulated by the label and other factors;
  • Assess the effectiveness of market surveillance and compliance control by Member State Authorities;
  • Assess the costs and benefits of mandatory independent third-party verification of the information provided in the tyre label, taking into account experience gained with regard to the broader type approval framework provided by Regulation (EU) 2019/2144; and
  • Assess the possibility of establishing an EU-wide coordinated body for assessing compliance,

Viegand Maagøe will conducting desk research, consult technical and industry literature, conference proceedings and presentations, trade journals and input from key stakeholders. The consultants will organise virtual, physical or hybrid meetings to gather input from stakeholders. All the information gathered from this literature review and interviews will be summarised in an appropriate form and fed into Task 2 and 3.

 

Task 2: Assistance providing input to the report

Based on the information gathered in task 1, Viegand Maagøe will provide input to and draft a report that addresses the following topics:

  • Effectiveness: how successful has the EU intervention been in achieving (or progressing towards) its objectives?
  • Efficiency: what are the costs and benefits for different stakeholders?
  • Relevance: to what extent did the scope and objectives of the intervention remain relevant over the implementation period?
  • Are there any problems with the tyre label that need to be addressed, highlighting:
    • what are the problems?
    • what the Commission would already be empowered to do?
    • what would need a complementary empowerment?
    • what would involve a complete Regulation review process?

When looking into the issue of independent third-party verification, specific focus should be dedicated to assessing the costs and benefits of mandatory independent third-party verification of the information provided on the tyre label, taking into account experience gained with regard to the broader framework provided by Regulation (EC) No 661/2009.

 

Task 3: Specific relevant aspects of the report

Finally, Viegand Maagøe will provide support to the Commission in reviewing and organising stakeholder comments and any input of a technical nature received from stakeholders.  At the request of the Commission, Viegand Maagøe will engage in discussion with concerned parties, including for example, tyre manufacturers and importer associations, vehicle manufacturers and importer associations, consumer protection organisations, the Commission’s experts and the Motor Vehicles Working Group (MVWG). Viegand Maagøe will provide technical assistance to the Commission in relation to the research and topics covered by this evaluation.


[1] Regulation (EU) 2020/740 of the European Parliament and of the Council of 25 May 2020 on the labelling of tyres with respect to fuel efficiency and other parameters, amending Regulation (EU) 2017/1369 and repealing Regulation (EC) No 1222/2009 (Text with EEA relevance). Available at: https://eur-lex.europa.eu/eli/reg/2020/740/oj

  Evaluation and Report of the Regulation on Tyre Labelling (EU) 2020/740

Viegand Maagøe

Study conducted for the European Commission