Tyre change: An influx of cheap tyres has led to increased industry price competition

The Tyre Retailing industry has grown at a modest pace over the past five years, benefiting from the rising number of motor vehicles on Australian roads. Overall growth in vehicle sales has driven demand for industry services over the period, as these vehicles have subsequently entered their tyre replacement cycles. While the number of vehicles on the road has increased, many consumers have reduced the kilometres they drive to minimise running costs. Fewer kilometres driven means tyres are taking longer to wear down, limiting significant demand growth for the industry. Overall, industry revenue is expected to rise at an annualised 2.1% over the five years through 2017-18, to $5.2 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • An influx of cheap tyres has entered the Australian market over the past five years
  • Tyres have become cheaper due to an influx of low-cost products manufactured in China
  • Population growth and greater vehicle numbers will likely provide expansion opportunities
  • Industry Report - Industry Key Buyers Chapter

    The Tyre Retailing industry exhibits moderate market share concentration. The four largest players account for an estimated 42.1% of industry revenue in 2018-19. The major companies have generally lost market share over the past five years, reducing the concentration of the industry. While the brand reputations they have built over time have enabled consistent business activity, consumers are increasingly going to independent outlets to have low-cost tyres fitted.Beyond the major players, the industry is highly fragmented, with many independent stores making up a large portion of the industry. Whi...purchase to read more.

    Additional Insights for the Tyre Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tyre Retailing Industry are

  • Having links with suppliers
  • Having a wide and expanding product range
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Average age of vehicle fleet in the Tyre Retailing industry impact industry performance..

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    What's in this report

    What is the Tyre Retailing Industry?

    Industry participants sell new and reconditioned tyres for passenger cars, utility vehicles, SUVs, vans, buses, trucks and motorcycles. Tyre retailers do not retread motor vehicle tyres, but often carry out minor repairs on tyres. The retailing process can also include fitting services such as wheel balances and alignments.

    Industry Products
  • Passenger vehicle tyres
  • Light commercial vehicle tyres
  • Truck and bus tyres
  • Motorcycle tyres
  • Other tyres
  • Wheels, batteries and other products
  • Tyre and mechanical services
  • Industry Activities
  • Motor vehicle tyres and tubes retailing
  • Motorcycle or scooter tyres and tubes retailing
  • Minor tyre and tube repairs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Average age of vehicle fleet
  • Demand from fuel retailing
  • Trade-weighted index
  • World price of rubber

  • Current Performance
  • Industry participation
  • Demand trends
  • Deflated prices
  • Commercial tyres
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Weak dollar
  • Fuel prices
  • External competition
  • Table: Tyre Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tyre Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Road Freight Transport
  • Long Distance Bus Transport
  • Urban Bus and Tramway Transport
  • Taxi and Limousine Transport
  • Consumers

  • Key Selling Industries
  • Motor Vehicle New Parts Wholesaling
  • Retail Property Operators

  • Products & Services
  • Passenger vehicle tyres
  • Light commercial vehicle tyres
  • Truck and bus tyres
  • Tyre and mechanical services
  • Wheels, batteries and other products
  • Motorcycle tyres
  • Other tyres
  • Chart: Tyre Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Commercial customers
  • Fleet buyers
  • Chart: Major Market Segmentation for the Tyre Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tyre Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tyre Retailing Industry

  • Industry Globalization
    Goodyear Australia Pty Limited, Bridgestone Australia Ltd, Tyrepower Ltd, Wesfarmers Limited,
  • Table: Goodyear Australia Pty Limited - financial performance
  • Table: Bridgestone Australia Ltd - financial performance
  • Table: Tyrepower Ltd - financial performance
  • Table: Wesfarmers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tyre Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tyre Retailing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Four-Wheel Drive (4Wd)
  • Vehicles that have all four wheels powered by the engine. In standard cars, only two wheels are powered by the engine.
  • Retread
  • Also known as a 'recap,' or a 'remould,' a retread is a re-manufacturing process for tyres that replaces the tread on worn tyres.
  • Wheel Alignment
  • Adjusting the angle of wheels to reduce tyre wear and ensure a vehicle doesn't pull to one side when attempting to drive in a straight line.
  • Wheel Balance
  • Involves adding small weights to a wheel to even out the distribution of weight across a tyre, which ultimately prevents vibrations while driving and slows down the wear of other vehicle components.
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    Why buy this report?

    The Tyre Retailing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tyre Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tyre Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tyre Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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