Continually growing demand for automobiles including passenger cars, two-wheelers, and commercial vehicles, have propelled the demand escalation of automotive tires. In light of this, automotive tire consumption has risen predominantly. Automotive tire manufacturers are constantly working towards expanding their geographical reach and expanding their product portfolio by adding next-gen tires. Various developments have been witnessed across the automotive tire market which is likely to offer notable future opportunities for emerging players in the automotive tire market.
Portfolio Expansions Gain Acceleration
As the requirements of automotive industry undergo transformations pertaining to the performance and durability of tires, automotive tire manufacturers are seen bringing new products with improved performance-efficiency and resistance to wear and tear to the market. With new innovations, the automotive tire makers are able to capture a significant share of the market.
Maxxis, a company committed to offering high-performance tires globally, recently launched two new automotive tire lines for the passenger car variant. The company aims to offer solutions that allow motorists to gain top performance without opting for over-priced automotive tire offerings in the market. The company also introduced the Vistra Sports 5, a high-performance sports tire.
Cooper Tire also announced the introduction of the Roadmaster RM351 HD tire which the company added to its commercial tire line. The tire is developed for mixed-service applications include mining, logging, and construction operations and is designed for on- and off-road application. Company officials stated that the tire is ideal for off-road driving where sharp stones are recognized as a worse adversary for an automotive tire. The tire is designed to help retain the casing for multiple retreads.
Companies Consider Online Sales Channels to Multiple Automotive Tire Sale
Although the OEM and aftermarket sales channels are the most widely used and promising sales channels for the automotive tire market, automotive tire manufacturers are now considering online sales channel to accelerate business growth and gain expanded market presence.
Michelin, a French automotive tire manufacturer has recently begun an online sale of tires in China with a successful collaboration with the country’s retail giant—JD.com. A Michelin flagship store was launched by JD.com on its online platform. The extended collaboration between these two companies would integrate their offline network of automotive service networks. Furthermore, customers purchasing Michelin tires through JD.com would gain benefits such as a priority at service networks like TyrePlus for the purpose of fitment. Michelin would be able to access more than 300 million customers in China through this partnership. Moreover, JD.com stated that it has witnessed triple-digit growth in tire sales 2018, and by collaborating with Michelin the tire sales are likely to further gain a boost.
Sears Auto Center teamed up with Amazon.com in May 2018, after which it announced the expansion of its program which offers full-service tire installation and balancing for end-users who purchase tires, irrespective of the brand, on Amazon.com. The company aims to provide superior auto service and by working in collaboration with Amazon.com it could further address and surpass that commitment with the help of this convenient and simple program.
Automotive Tire Production Gaining a Push
Automotive tire manufacturers are increasingly expanding their automotive tire manufacturing capabilities to meet the propelling demand. Spreading across lucrative regions, these companies aim to reap the benefits associated with the increasing demand.
Balkrishna Industries (BKT), a leading off-highway tire manufacturer recently announced its plan to set a new construction project for a novel automotive tire manufacturing site in the US. Valuing nearly $100 million, this plant is the company’s first plant outside India with which it would serve not just the US but also the entire American region.
Burgeoning Partnerships Foster Automotive Tire Supply
Various partnerships and collaborations are witnessed across the automotive tire market, wherein companies manufacturing automotive tires are gaining major contracts from automakers. This has largely supported the supply space of the market.
An automotive tire designer and engineer, Pirelli is in an official partnership with Briggs Automotive Company (BAC). Both the firms have been working towards developing tires for the mono, road-legal, single-seater supercar. BAC founder, Neill Briggs stated that they are optimistic over the partnership with Pirelli as it allowed them to capture all aspects throughout the long development process of producing three perfect tire sets for the Mono. By joining forces with Pirelli, the company believes to be able to continue to deliver goods on the road and track.
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