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Here’s Why Tire Companies Love EVs
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Here’s Why Tire Companies Love EVs
Recent news reveals that tire companies are in love with EVs. As we all know, The tire business has always been a brutal one- low growth, low margins, and extreme competition. About half of customers are largely indifferent to the brand of tires they buy; all that matters is the price. But there is good news, EVs will provide tire makers with the biggest growth opportunity seen in decades. What exactly is this opportunity? Is the tire business a good investment now? How will this change the EV industry? Let’s find out.
To begin, let’s look at how the tire business has been doing before EVs. The total value of the tire market has stayed at about $50 billion for the last few years. Experts don't think it will grow much in the future. It increases a bit faster than the population but much slower than the economy. So, in some ways, it grows slower than toothpaste.
Recent news reveals that tire companies are in love with EVs. As we all know, The tire business has always been a brutal one- low growth, low margins, and extreme competition. About half of customers are largely indifferent to the brand of tires they buy; all that matters is the price. But there is good news, EVs will provide tire makers with the biggest growth opportunity seen in decades. What exactly is this opportunity? Is the tire business a good investment now? How will this change the EV industry? Let’s find out.
To begin, let’s look at how the tire business has been doing before EVs. The total value of the tire market has stayed at about $50 billion for the last few years. Experts don't think it will grow much in the future. It increases a bit faster than the population but much slower than the economy. So, in some ways, it grows slower than toothpaste.
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