Tire Wholesalers Industry
Insights from D&B Hoovers

Industry Overview

Description

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

Demand depends on consumer income and vehicle miles driven. The profitability of individual companies is linked to merchandising and marketing. Large wholesalers have economies of scale in distribution, support of national accounts, and advertising and promotion. Small companies can compete by specializing in types of tires or applications (such as for farm equipment or motorcycles) or by offering superior service and support. The US industry is concentrated: the 50 largest companies generate about 70% of revenue.

Products, Operations & Technology

Tire wholesalers sell new replacement automobile tires (about 70% of US revenue); new replacement truck, bus, and industrial tires (20%); and used or retreaded tires (less than 5%). (Original tires for new cars are sold directly to car companies, called OEMs, by tire manufacturers.) Some wholesalers also sell wheels, accessories, and related tire supplies and tools. About 70% of consumer tire sales are "flag" brands (premium manufacturer brands); 15% are "associate" brands (economy manufacturer); and 15% are private-label.

Geographic Segmentation

See where the Tire Wholesalers industry is concentrated geographically and research companies by financials and key corporate data.

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