Tyre sales going downmarket

By David Shaw, ERJ staff

Singapore -- Buyers of passenger car tyres are seeking better prices in the budget and mid-range brands, at the expense of premium brands, according to delegates at the TyreExpo Asia event in Singapore.

Pat Berriman, senior vice-president of Stamford Tyres said he had noticed a strong trend in Europe and elsewhere for buyers to move down market earlier in the life cycle of a vehicle.

Historically, when  car owners replace their tyres the price segment is strongly affected by the age of the vehicle. Owners of new vehicles trend to buy premium brand tyres; owners of very old vehicles tend to buy budget brands and in between these two periods, buyers tend to select mid-range brands.

Berriman and other obervers said they had seen a significant shift towards buying lower-segment brands much earlier in the life of the vehicle in a bid to save money.

Berriman noted that in Asia, buyers are much more conscious of the brand name on their tyres and he had not seen the same rush to mid-range and budget tyres in that region.