Linglong Tire confirms the signing of a US$300 million deal with Paraguay-based tyre distributor Sunset Tires. Wang Feng, chairman of Linglong Tire, put his signature on a strategic cooperation agreement along with Nabil Chamseddine, chief executive officer and president of Sunset, on 12 October.
Martins Industries has announced a new tire/wheel trolley to their roster of tire equipment. Dubbed the Canuck Tire Puck (#MCTP) due to its Canadian origins and resemblance to the iconic ice hockey puck, the new trolley helps to prevent common workplace injuries and accidents by reducing the need for labor-intensive tire handling.
Michelin North America has announced an agreement with Road Atlanta for exclusive naming rights of the racetrack. Beginning in 2019, the track will be renamed Michelin Raceway Road Atlanta.
This is the first time globally that Michelin has secured naming rights of a racetrack. Equally as significant, this agreement is the first entitlement partnership at Road Atlanta, which is situated about 100 miles from Michelin North America’s headquarters in Greenville, S.C.
Akron, Ohio – The tire industry needs to continue to adapt as autonomous and electric vehicles become more popular, according to Jim Popio, vice president of operations in North America for Smithers Rapra.
Popio focused on developments driven in the automotive industry by ACES, or autonomous, connected, electric and shared vehicles in his presentation at the International Tire Exhibition & Conference in Akron 11-13 Sept.
Jim Popio, vice president of operations in North America for…
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
Nexen Tire announced that the Winguard Sport 2 received an award at the ‘Good Design Awards 2018.’
The awarded Winguard Sport 2 is a premium ultra-high performance alpine/studless Passenger Car Radial (PCR) tire that provides the optimal driving experience in the snow with a winter reindeer and ski plate as its motif. It has been evaluated as a premium winter tire for its excellent grip and stable performance in the snow with its unique 3D winter kerf and zigzag groove.
Continental (XTER:CON)’s stock price has fallen due to industry-wide concerns about auto production volumes and tariffs, but we believe the company has superior end-market exposures and a lower risk profile than many of its peers. Continental’s tire business accounts for about 45% of the company’s earnings, and we find that it generates solid margins and returns relative to industry peers. Replacement tires account for a large portion of segment earnings and …
In honor of breast cancer awareness month, tire manufacturer Titan International (maker of Goodyear Farm Tires) will host the 4th Ride to a Cure event this Saturday at Water Works Park in Des Moines, Iowa
The free, family-friendly event is open to the public with 100% of proceeds going to John Stoddard Cancer Center in central Iowa.
Titan will host a hayrack ride, pumpkin painting and a car show. The Iowa Speedway Official Pace Car will also be on site.
Nexen Tire America has announced “American Muscle for American Heroes” – an all-new program designed to honor a well-deserving veteran who has been wounded in combat and awarded the Purple Heart Medal.
Nexen Tire partnered with the highly respected Purple Heart Foundation to help select a Purple Heart recipient to receive an iconic American muscle car – a custom Nexen Tire Purple Heart Dodge Challenger.
ROLLING MEADOWS, Ill. – Goodyear’s race tire plant in Akron is one of four manufacturing enterprises to have earned a 2018 Excellence Award from the Association for Manufacturing Excellence.