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 3 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."

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