The company said new-tyre demand fell by 5% annually in Europe in 2012 while replacement demand dropped 10% year-on-year.
The North American new-tyre market grew by 16% in 2012, returning to 2007 levels reflecting strong new car sales as buyers replaced ageing models. But sales of replacement tyres fell 2% as consumer confidence weakened.
Sales of new and replacement tyres increased by 11% and 2% in Asia excluding India. Michelin increased underlying operating profits by 25% annually, to £2 billion in 2012.