Month: August 2023

If you’re in the thick of the auto business, particularly tires, knowing the current trends is just smart business. The numbers from month-to-month and year-to-year aren’t just stats; they’re the scorecard for our industry. Gas prices, travel data, and store visits – they all affect our bottom line. Here’s a straight shot of the stats that matter year-over-year (YoY – July 2022 vs. July 2023) and month-over month (MoM – June 2023 vs. July 2023): 

Quick Metrics:   

📉 Gas Prices: Down 20.6% YoY | Slight 0.8% MoM Increase to $3.71 

🚗 Miles Traveled: 1.8% YoY growth at 328M, but down 0.8% from last month 

🚪 Store Visits: Not seeing the expected recovery yet |6.6% YoY decline and a sharp 6.8% MoM drop 

Tire Pricing Snapshot: 

💲 Retail Price: Steady YoY growth at 2.2% | Minor dip this month by 0.5% 

💼 Cost: Up 2.6% YoY | Recent 0.5% MoM decrease 

📊 Margin: Maintained 0.9% YoY growth | 0.7% decline from last month 

As the automotive world shifts, it’s the numbers that help us keep pace and strategize. We’ve given you the metrics; now it’s up to you to use them to your advantage. Consider these stats as tools in your toolbelt, every bit as essential as a wrench or jack. Let these figures guide your next move, whether it’s adjusting inventory or revising marketing strategies.  

Got questions or looking for more insights? Don’t hesitate to reach out. Remember, success in this industry isn’t just about what you sell but how well you adapt. 

Did you find this report insightful? Share it with your network!   

Published by Torqata Insights Team – reach out to InsightsTeam@torqata.com

Tier 4 tires have made quite the splasIn the ever-evolving landscape of the automotive world, one tire tier stands out above the rest—Tier 4.

But what’s behind this notable rise? 

Tier 4’s Rise to Prominence

Looking at the tire business, it’s clear there’s a move toward Tier 4 tires.  Here’s what the numbers tell us: 

Pricing Dynamics: While other tire categories are seeing a price hike, Tier 4 prices bucked the trend, dropping by 4.9% year-over-year (YoY). Even with a monthly decrease across the board, this price shift is driving more interest in Tier 4 options 

Sales Volume: Despite a price drop, Tier 4 sales only decreased by 5.0% month-over-month (MoM) – but still performing notably better than its counterparts. 

Why Are Tier 4 Tires Gaining Traction?  

There are a couple of important reasons: 

Price hikes in other tire tiers have accelerated consumers’ gravitation towards Tier 4 tires. As cited in Tire Business Review, Tim Eisenmann commented, “While Tiers 2 and 3 are feeling the most strain, Tier 1 remains stable. Interestingly, Tier 4 emerges as the top performer. For instance, if one prefers Michelin, they stick to it. But those open to alternatives are exploring Tier 4, occasionally opting for unfamiliar brands to save some cash.” 

The shift towards Tier 4 tires is more than just price increases in the other tiers. The aging car parc (vehicle population) plays a significant role too.  A recent highlight from the Jeffries Annual Review of Global Aftermarket in the Auto Care 2024 Factbook noted, “Vehicles between 4-11 years old, widely considered the aftermarket’s ‘sweet-spot’, surpassed a count of 117 million. Most notably, the average age of light vehicles in the US rose to 12.2 years, setting a new record.” This significant shift underscores the importance of understanding consumer behavior within this evolving market. 

As vehicles age, owners tend to be more cost-conscious regarding maintenance and replacements. Recent data has highlighted an increasingly older car parc, with more vehicles on the road past their prime years. When faced with necessary replacements or maintenance, owners of these older vehicles often prioritize affordability over brand loyalty, especially when the car’s perceived value has depreciated. 

Curious about the reasons behind this surge? Dive into the 10 Factors Fueling Tier 4 Tire Choices

Torqata is proud to present Trends + Treads, a blog series that brings you actionable market insights in the automotive tire industry! We’re dedicated to equipping tire and service shops with actionable data and analytics tools that can help increase profits, identify blind spots in the business, and optimize the supply chain.  

For our next Trends + Treads post, our very own Franklyn Quiteh, Business Development Manager, previously from Tesla, takes our Q2 2023 wrap-up and breaks it down for you.

The consistency in YoY pricing provides a great opportunity to stabilize pricing and gain solid insights. Data is KING and understanding your local and national trends can be the difference between a good year and a great one. Do not get left behind!  

Torqata has the insights and data to identify and provide profitable opportunities at your fingertips. Why pass this up?

With tire sales volume decreasing, perhaps this would be a great opportunity to get more “bang” for your buck. Evaluating the profit margins on your top 10 or 20 bestsellers can very well determine how these economic rollercoasters impact your bottom line.  

Consider this, with volumes decreasing due to a variety of different factors, including weather, perhaps using Torqata’s data to see if the cost of the tire is changing in your market, could help. Even with a decrease in volume, there could still be an opportunity to see an increase in average profit per unit!  

You never know; the top vehicle or tier-type of tire may surprise you! 

Tier 4 Remains Dominant! 

Even as overall sales decline, YoY we are seeing Tier 4 tires rise to the top of many retailers’ sales reports! This directly coincides with the conservative nature of the customer — in other words — the “that’ll do” mentality.  

Retailers! Adjust and capitalize! Review the top market movers in the tier 4 category in your area today and cash in on this opportunity. There is always a solution, allow Torqata to help you find it. 

Where our insights come from:

Our exclusive insights leverage data from over 15 thousand tire retailers and 50 million tires sold, which we combine with our comprehensive catalog of 221 thousand tires. For more information on our tools, contact support@torqata.com or call 828-TORQATA.