Pirelli has announced it will remain Global Tire Partner of the FIA Formula One World Championship for another four years, after renewing its current contract, which lasts until the end of the 2019 season. The renewal will extend the agreement from 2020 to 2023.
IndiGo, the largest airline in India in terms of fleet size and passengers carried, has appointed Michelin tyre partner for its entire fleet. Michelin Aircraft Tyre will supply tyres from its Michelin Air range, primarily the Michelin Air X radial, for IndiGo’s Airbus A320 and ATR 72-600 aircraft – a current total of 189 planes.
Dealer Tire, LLC, a national distributor of replacement tires and parts for automotive dealerships, announced that Bain Capital Private Equity has made a significant investment in the company to accelerate growth and expansion. Financial terms of the private investment were not disclosed and proceeds will be used to purchase the interests of Lindsay Goldberg LLC, the company’s current investment partner since December 2014.
E-commerce has been a key business disruptor across all industries and is forcing change, innovation and growth in the tire market. Still relatively new to the business-to-consumer replacement tire market, online tire sales sites have become significant for consumer research into tire types, attributes, reviews, pricing and availability. This trend and the expansion of e-commerce in general are leading to growth in online sales of tires, according to a new Smithers Rapra report, The Future of E-commerce for Tire Markets to 2023. (TRAC Members receive 15 per cent discount).
Across major tire market segments and geographic regions, the number of B2C replacement tires purchased online is estimated by Smithers Rapra at nearly 100 million units in 2018, or about 6.5% of the global market. This is expected to rise by an average of almost 19% per year to over 236 million in 2023, when the share will be nearly 13%.
E-commerce tire sales channel market 2015-23, by volume (million units)
Source: Smithers Rapra
Value growth will be somewhat higher, at 19.7% per year CAGR, from $7.1 billion in 2018 to $17.3 billion in 2023, faster than unit growth and reflecting modest price increases. While a degree of price competition within the online channel and versus offline retail will continue, the convergence of online and offline channels and the increasing importance of user experience relative to price will support higher prices in the channel over time.
Reflecting the numbers of vehicles in use, rates of tire replacement and rates of e-commerce penetration, the passenger car and light truck (light vehicles) segment is by far the largest, at 81% of volume in 2018, followed by motorcycles (12%) and then medium and heavy trucks and buses (7%). Light vehicles have been and remain dominant in absolute value and volume terms. In unit terms, motorcycles are a distant second, but in value terms, medium- and heavy duty trucks and buses are the next most important, although a much smaller segment.
Trends driving e-commerce tire sales
Consumer preferences are ultimately the main market drivers for tire e-commerce with technology and retail developments enabling the change. Consumer behaviour and retail trends behind the uptake of e-commerce in tires include price sensitivity, reduced brand loyalty, time sensitivity and, increasingly, a desire for an omni-channel, which blends features of online and offline channels (already the case to some extent due to tire installation requirements).
Fitment proliferation, the increasing number of available tire sizes, is also contributing to the growth of tires sales via the internet. This has been driven in part by the increase in rim diameters and the greater use of high-performance tires as OEM fitments, which is putting a strain on physical showroom and inventory space. E-commerce options help retailers and customers alike with education and availability.
Growing economies and emerging markets
General economic and demographic growth serve as top drivers for tire e-commerce. B2C replacement tire e-commerce was initially a phenomenon of developed markets, led by Western Europe, followed by the US, which still enjoy the highest penetration rates. However, Asia-Pacific has already become the largest in unit terms and is on track to pass Europe in value terms during the forecast period, due to its large population and rapidly growing tire market (mostly motorcycle tires). Greater internet penetration and e-commerce readiness in developing markets are fueling the expansion of online tire sales. Very rapid growth will come from Eastern European countries and emerging economies such as China, India and Brazil, where levels of e-commerce penetration and vehicle density are comparatively low and growing.
For more information on the Smithers Rapra market report The Future of E-commerce for Tire Markets, visit https://www.smithersrapra.com/market-reports/tire-industry-market-reports/the-future-of-e-commerce-for-tire-markets-to-2023
Online tire sale platform
The online retailing helps in reaching out too many consumers without launching stores and this results in cost benefits which are ultimately passed on to the customers. Moreover, increasing spending on e-commerce platform by OEM’s due to high internet penetration rate will drive the online tire market during the forecast period as well.
MILAN, Italy — Pirelli & C. S.p.A. named nine suppliers recently as the recipients of its Pirelli Supplier Awards 2018, pulled from a supply chain of more than 10,000 companies.
The recipients — in the areas of raw materials, services and machinery — were chosen for their ability to support the Pirelli supply chain its goals of sustainability and excellence, according to a company news release.
Accella Tire Fill Systems has partnered with American Forests, a non-profit conservation organization, as part of a long-standing collaboration to replant thousands of new trees in the nation’s most devastated fire zones.
As part of its “One Tote, One Tree” sustainability campaign this year, Accella, its customers and dealers will specifically assist with the reforestation of the El Dorado National Forest located in Northern California.
Dublin, July 30, 2018 (GLOBE NEWSWIRE) — The “Global Ultra High Performance (UHP) Tire Market By Vehicle Type (Passenger Car Vs Two-Wheeler), By Tire Type (Summer & All-Season Vs Winter), By Demand Category (Replacement Vs OEM), By Region, Competition Forecast & Opportunities, 2013-2023” report has been added to ResearchAndMarkets.com’s offering.
Farm tire sales continues to be weak due to the broader sluggishness in the farm equipment market, however, opportunities exist as global sales are likely to surpass 42 million in 2018. Demand is led by tractors and harvesters, with trailers and sprayers following suit. Sales continue to remain concentrated in the independent aftermarket channel, with OEM and OES complementing demand.
Akron, Ohio – The share of the US original equipment and replacement tire markets held by high-performance tires — defined as H-rated and higher — has risen for eight straight years, according to US Tire Manufacturers Association (USTMA) data, to nearly 56% and 45%, respectively.
A closer inspection of the data, however, shows the share held by V- and Z-rated tires has plateaued at OE at roughly 20% but continues to grow steadily in the replacement…