HOME Research Insight Bridgestone Corporation (Japan) and Continental AG (Germany) are the leading players in the Automotive Tires Market

Bridgestone Corporation (Japan) and Continental AG (Germany) are the leading players in the Automotive Tires Market

The rising focus on decreasing rolling resistance for better fuel economy is driving the demand for the automotive tires market. Factors such as increasing demand for low-profile tires are positively pushing the original equipment market as well as the aftermarket for automotive tires. The tires market for Original Equipment (OE) is projected to grow at a CAGR of 5.48% from 2016 to 2021, to reach USD 30.26 Billion by 2021.

Supply contracts/partnerships has been the key strategy adopted by major players to gain traction in the automotive tires market. Bridgestone Corporation (Japan) signed a contract with Lexus (Japan) for the manufacturing of TURANZA T005 RFT tires as the standard equipment on the 2017 Lexus LS sedan. Likewise, Michelin (France) signed a supply contract with Mercedes Benz (Germany) for providing its Pilot Sport Cup 2 tires as the original equipment fitment on the Mercedes-AMG GT R. New product development has been the second most widely followed strategy in the automotive tires market. Michelin (France) introduced an ultra-high performance tire, Pilot Sport 4 S, which was specially designed for sports cars and high performance vehicles. The product line included 35 sizes, section width ranging from 225mm to 345 mm, aspect ratios ranging from 30 to 45 and rim diameter ranging from 18 inches to 20 inches. Other companies that adopted this strategy include Continental AG (Germany), The Goodyear Tire & Rubber Company (U.S.), Hankook Tire (South Korea), and Cooper Tire & Rubber Company (U.S.).

The automotive tires market is dominated by a few global players, and comprises several regional players. Bridgestone Corporation (Japan) is a leading global player in the market. The company manufactures and distributes tires and tubes for passenger cars, trucks, buses, construction and mining vehicles, industrial machinery, agricultural machinery, aircrafts, motorcycles, scooters, and others with a regional presence in 150 countries worldwide. A diverse product portfolio along with a strong global presence helps the company maintain its leadership position in the market, keeping revenue streams strong. The key strategy followed by the company is supply contracts. In April 2016, the company entered into a supply contract with Honda (Japan), which involved the application of Bridgestones Ecopia EP160 tire as an original equipment fitment for the Honda Clarity. Presently, the company is a key supplier to OEMs such as Toyota Motor Corporation (Japan), Honda Motor Company (Japan), and Nissan (Japan) amongst others.

Continental AG (Germany) is one of the top five automotive tire suppliers worldwide. The company manufactures and distributes tires to both vehicle manufacturers and replacement business. It has adopted the strategy of new product development to increase its presence in the automotive tires market. In September 2016, the company introduced two new tires that helped in improving the fuel economy of the vehicle, namely the EfficientPro tire line and the LightPro tire line. The EfficientPro tire line offers the advantage of improved fuel efficiency by saving up to 0.64 liters of fuel over 100 km. The LightPro tire line can possibly reduce the total weight of a vehicle by approximately 80 kg.

Related Reports:

Tires Market for OE & Replacement by Rim Size (13-15,16-18,19-21,22-26 inch), Replacement Market, Aspect Ratio (35-55, 60-70, 75-85), Section Width (<200,200-230,>230 mm), Retreading Market and OHV Tires Market, Application, and Region - Global Forecast to 2021

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