Tire Wholesalers

Tire Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distribute new and used tires and tubes for passenger and commercial vehicles. Major companies include American Tire Distributors and TBC Corporation (both based in the US), as well as Bond International (UK), Dynamic Tire (Canada), and PPC Asia (Philippines).

COMPETITIVE LANDSCAPE

Radical changes in the replacement-tire market threaten to disrupt what traditionally has been relatively stable industry. Manufacturers increasingly are taking control of their own distribution, cutting out wholesalers: Goodyear in 2018 announced that it will no longer use tire wholesale industry leader ATD as a distributor. The continued increase in vehicle sales and internet penetration contributes to the expected compound annual growth rate of over 7%, making online tire sales pose a small but growing competitive threat to tire dealers and wholesalers that supply them. Other potential disruptors for tire wholesalers include ride-sharing services, car-sharing services, and autonomous vehicles, which in combination may someday reduce the number of cars on the road and the number of miles driven.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of tire wholesalers include tires and tubes (about 50% of industry revenue) and new and automobile tires and tubes (about 30%). Other products include re-treaded and used automobile tires, new truck and bus tires, re-treaded and used truck and bus tires, and automotive parts. Tire manufacturers, called OEMs, sell original tires for new cars directly to car companies. Some wholesalers also sell wheels, accessories, and related tire supplies and...