Report and Analysis
Report and Analysis
Report and Analysis
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Why Tires Are So Expensive The Top Reasons and Deep
Analysis
Tires. They are used by drivers every day but rarely consider the tires. When
buying a vehicle, it is easier for buyers to focus on the performance of the
engine, the back seat space, or the audio system than to consider the tires,
unless it rains or until the tires stop working or you need to shell out for
replacement. The shock of sticker price that could result from replacing a set
tire can be particularly traumatic for a rising percentage of drivers in the
present due to one main aspect. The SUVs sports utility vehicles are currently
1
all the rage, accounting for about 50% of the sales of tires and by 2020, around
20% rise from 2007. The Consumer Reports survey conducted in 2019 revealed
2
that tires for SUVs are expensive compared to the ones that are tted on
coupes, sedans, or minivans. These were not the most expensive tires that
survey respondents purchased. This distinction was reserved for cars with
3
sports tires, which could cost as much as $190. The increase in SUVs is causing
a rise in the cost of tires for the average consumer, and it's not the only thing
4
that could raise the price. Electric vehicles also have the potential to increase
the cost of tires when they take over the market for autos. To date, tires have
not been completely immune to the raging of E-commerce that has affected
5
various other areas of retail. The majority of customers purchase their tires
from dealers, and even online sellers use traditional dealers to install them.
However, the market for tires is highly competitive, and every player is looking
6
for new ways to reach consumers who are looking for savings.
History of tires
7
Tires' history goes at least as far as around the time of the 1800s. The rst tires
were made of solid rubber that was great at protecting wheels but not so great
to cushion riders from bumps on the road. The pneumatic or air- lled tire is
believed to have been invented by Robert William Thompson, who led an
8
invention patent in 1845. The 1850s and the late 1800s were also the time
when many of the world's most famous tire companies were created and, in
particular, ones from Europe. European ones. French manufacturer of tires
9
Michelin traced its roots from 1832. The company was changed to Michelin in
1889. It also invented the rst bicycle tire with detachable attachment in 1891.
Italian manufacturer Pirelli was founded as a manufacturer of rubber-based
products in 1872. It was in America Charles Goodyear developed the process of
10
vulcanization, which was invented in 1839. He utilized sulphur and heat to
11
convert weak but exible organic rubber to more durable and robust material.
The discovery, named in honour of Vulcan, the Roman god Vulcan, the God of
12
Fire Vulcan, was essential in the creation of rubber for industrial use and, of
course, tires. Japanese manufacturers came in a little later, including what is
today the biggest tire manufacturer around the globe. Bridgestone. Bridgestone
began as a division of a Japanese manufacturer. In 1930. It began making its
13
rst tires. It changed its name to Bridgestone in 1931. It was to become one of
the largest tire manufacturers in 1988 after it merged with American producer
Firestone.
Tires tiers
14
The tire makers are often split into tears by those who are in the business.
15
There are brands that are considered tier one, which usually includes the most
well known and most often the highest priced brands like Michelin, Goodyear
and Bridgestone, for instance. These are typically the brands that are the ones
that are standard on factories and cars, as well as the brands that produce
some of the most popular tires that consumers will choose for certain kinds of
cars, especially the ones with high performance. Below are the brands in the
second tier that tend to be somewhat less expensive and have a smaller market
16
share, and tend to be less heavily promoted by the manufacturer. These include
brands like Bridgestone Firestone brand, good years, Dunlop, Michelin's BF
17
Goodrich, as well as brands like the Yokohama or Toyo brands. The tires in the
Tier 3 category are typically described as quality brands, and the most
affordable of these three categories have become popular with shoppers who
18
are using the internet to purchase tires. In a paper published in February of
2020, Northcoast research examined a study from 100 Amazon installers
across 20 cities across US contacts with Sears reported a rise of between four
and ve customers per week through Amazon sales. Pep Boys saw an
additional three customers, and the tire installer Monroe was able to see
several customers each week, on average. Customers with 57% satisfaction
19
reported that the tires they bought were used tires that were not expensive, low
brand names that are value or tier three brands and some they had never seen
before. 41 per cent We're seeing a variety of brands, the majority of which came
from Tier 2. Only 2% of the contacts who participated in the survey experienced
20
an increase in the number of tier-one brand tires. At present, Amazon has a
minor impact on the retail of tires, but it is unclear how widespread selling tires
online would become.
22
The most frequently cited reason to choose a speci c brand of the tire was its
price. In a Consumer Reports survey followed by tread time and the degree to
23
which a consumer believes in a particular brand. The tire is composed of rubber
24
compounds and wires, and belts made of steel for strength and structure.
However, tire manufacturers claim that as many as 200 ingredients could be
25 26
contained in the making of a single tire. There are, of course, various types of
tires; however, larger tires will require more components, which means a longer
time to construct and, consequently, greater expense. A survey conducted in
2019 by Consumer Reports found the median cost of a tire for the sedan coupe
27
hatchback (minivan) was $137, not counting the installation costs. The cost for
an SUV was $262. The pickup trucks were also more expensive, at 175 SUVs.
They come in all sizes; however, they tend to be heavier and bigger than similar
passenger cars and similar dimensions. The heavier the vehicle and the more
strength the tire will require. SUVs typically have bigger wheels and require an
extra-large tire. The growing popularity of SUVs has caused manufacturers of
28
tires to expand their product lines and, in some instances, develop new types
of tires designed speci cally for crossovers and SUVs.
29
These vehicles are able to take all sizes so that they could use a car tire, or they
30 31
could take a truck tire. Or adopt the tire manufacturers that are creating a new
category of crossover SUV type of product. They're a little more costly than car
tires mainly because they are available with larger dimensions. As with clothes,
you will pay more money for a bigger size tire, but you will need to wait for less
time.
32
People are often shocked by the cost they have to pay for SUVs and truck tires.
There are more 17 and 18 inches diameter tires made than the 13 or 12-inch
33 34
diameter tires being produced this year. This is the result of the way the
automobile population is changing. There are more raw materials, and there's
35
more natural or synthetic rubber present in the tires. Therefore, those tires, as
36 37
you're aware, cost a bit more. In addition, you're not able to produce as many
tires with your current manufacturing facilities. Suppose you're making larger
tires. It takes up space.
38
This will not change the trend, and over the long run, this could create some
39
dif culties for some manufacturers. Additionally, a variety of vehicles,
including traditional automobiles such as sedans, could have larger tires or
special packages that can be costly to replace.
To consumers who are buying automobiles. When buying a vehicle, be sure to
40 41
check the tires and wheel package, which is on the vehicle. A majority of people
purchase a car, and you realize that today's cars come with larger and larger
42
wheels. However, those tires are expensive, and you may not really need them.
Another possibility could drive up the cost of tires to a higher level, owing to the
growth of electric vehicles. Hybrid and electric vehicles weigh more than
43
internal combustion vehicles and trucks, so they require more robust and more
robust tires.
are a unique method to sell tires. Bridgestone has been working to reinvent its
4
business as a mobility rm. Bridgestone is introducing sensors on its tires. This
, they claim, is possible to do for much more. The idea is to utilize sensors to
46
enhance the automated systems for driver aid as well as provide additional
47
information to drivers. The sensors that are on the tire could represent
technology that has found its time. Bridgestone was acquired by American
48 49
manufacturer Firestone at the end of 1988. Just a little over 10 years later, the
company was caught in an unfathomable scandal overtires that were not
properly in ated and put on the rst loved family SUVs such as The Ford
Explorer. The repercussions of that scandal led to a government order to supply
sensors to monitor the pressure of tires for cars using sensors within the tire.
Around 20 years later, sensors in tires could offer companies such as
Bridgestone an opportunity to provide customer service and differentiate
themselves from competitors.
Additionally, Michelin has made a few acquisitions, as well as smaller ones in
50
the telematics area of things, and there are tire sensors, and perhaps you
incorporate that into eet connectivity and car telecoms to notify a eet of
rental vehicles what tires on speci c vehicles require tire replacements, or so.
51
This all plays into the future of possible revenue sources, as well as other
sources of revenue you are aware of; however, still, it's very early from a tire
52
maker's perspective. Packable down.
originate out of South Korea, Taiwan, Thailand and Vietnam. Remember, there's
currently a 15 per cent tax on tires coming from China.
With a tariff of nearly 30%, you purchase these products expecting prices to
rise, not based on raw material in ation, but to help mitigate the effects of
these tariffs on tires that are an identical playing eld from a brand's
54
viewpoint. If a product is priced higher because of tariffs, it's likely that we'll
observe some changes right in market share.
Certain, this will cause a noticeable increase in the price of tires.
16. Below are the brands in the second tier that tend to be Unclear Clarity
somewhat less expensive and have a smaller market sentences
share, and tend to be less heavily promoted by the
manufacturer.
18. The tires in the Tier 3 category are typically described Unclear Clarity
as quality brands, and the most affordable of these sentences
19. the tires they bought were used Passive voice Clarity
misuse
24. The tire is composed of rubber compounds and wires, Unclear Clarity
and belts made of steel for strength and structure. sentences
30. These vehicles are able to take all sizes so that they Unclear Clarity
could use a car tire, or they could take a truck tire. sentences
33. There are more 17 and 18 inches diameter tires made Unclear Clarity
than the 13 or 12-inch diameter tires being produced sentences
this year.
35. There are more raw materials, and there's more Unclear Clarity
natural or synthetic rubber present in the tires. sentences
36. Therefore, those tires, as you're aware, cost a bit Unclear Clarity
more. sentences
40. When buying a vehicle, be sure to check the tires and Unclear Clarity
wheel package, which is on the vehicle. sentences
44. On the retail side, companies like Monroe as well as Unclear Clarity
Les Schwab af rm that offering services to customers sentences
are the thing that differentiates them from online
sellers who lack stores and installation services, as
well as big-box retailers like Walmart.
51.
52. This all plays into the future of possible revenue Unclear Clarity
sources, as well as other sources of revenue you are sentences
aware of; however, still, it's very early from a tire
maker's perspective.