Retail

MTD Facts Issue: tire dealers vs. car dealers

Posted on January 27, 2014

More consumer tires are sold through the independent tire dealer distribution channel than any other, by far. However, it is not the fastest growing channel.

That "honor" belongs to -- drum roll, please -- auto dealerships. While independents account for more than 60% of the consumer tire sales at the retail level, they have only increased their market share one percentage point since 1999.

Auto dealerships, however, have increased their market share from 1% to 7.5% over that same time span.

The 2014 Modern Tire Dealer Facts Issue breaks down both the retail and de facto wholesale (you'll just have to read the story!) tire distribution channels. Auto dealerships may own 7.5% of the market, but collectively, they are not even members of the third-most popular distribution channel.

To find out which distribution channels are in a growth mode and which ones aren't, check out the Facts Issue, which for the 48th year, breaks down the domestic tire market before anyone else does.

For more information about the tire industry in 2013, click on these links:

"MTD Facts Issue: Does a retread cost too much?"

"MTD Facts Issue: Size popularity contest."

Related Topics: Auto dealerships, Distribution channels, Facts Issue

Comments ( 4 )
  • charley

     | about 4 years ago

    The awful reality about this 7.5% is that we helped, and continue to help it grow as a channel of distribution through our complacent and subservient supply of tires from our inventories. When this travesty started I couldn't understand how or why we should supply tires to a competitor for a pittance in commissions because our suppliers told us we had to do it because it was written in our contracts. I for one, never supported or supplied tires to car dealerships. I can look back now and pat myself on the back while I say--"I told you this would happen."

  • See all comments
More Stories
News

Union Official Calls Tariff Vote 'A Huge Mistake'

The leader of the United Steelworkers union says the International Trade Commission has made "a huge mistake" in not imposing tariffs on truck and bus tires from China. And based on early feedback from Modern Tire Dealer readers, tire dealers and particularly retreaders agree.

News

Two Asian Automotive Shows in One in March

Tyrexpo Asia 2017 and the inaugural edition of GarageXpo Asia will be held in conjunction with each other March 21-23, 2017, in Singapore. The events are organized by SingEx Exhibitions Pte. Ltd.

Bobby Hendry from 31 Inc. was from one of 80-plus vendors at the Tire Factory trade show. Here he talks to Mike Fleming, equipment supply manager for the dealer group, and Marc Thompson from Point S Everett in Everett, Wash.
News

Point S Rebranding Exceeds Expectations in the U.S., and Points to More Growth

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

News

Cooper Enjoys a Full-Year Income-to-Sales Ratio of 8.5%

Cooper Tire & Rubber Co. posted net income of $69.3 million on net sales of $783.9 million for its fourth quarter ended Dec. 31, 2016. That compares to income of $59.2 million on sales of $775.5 million for the same period in 2015.

ATV has added 6 stores to its network of American Tire Depot stores in California.
News

ATV Opens 6 American Tire Depot Stores

ATV Inc. has acquired six stores in the greater Los Angeles metro area. The purchase expands ATV's network of American Tire Depot stores to 98 outlets, all in California.

News

MATDA Joins TIA's Social Media Platform

The Mid-America Tire Dealers Association (MATDA) has joined the social media content platform developed by the Tire Industry Association (TIA) and the Automotive Marketing Foundation (AMF).

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!