Top 5 Premium Tire Companies

Demand for premium tires is increasing because of its high quality and improved performance and enhanced safety features. Consumers, worldwide, are opting for premium tires more frequently as they are more durable, giving better quality and safety.

Low-grade tires are attractive only for replacement purposes as they are cost-effective, but they tend to wear out faster, require frequent replacements, and have safety issues. Hence, consumers, especially in urban areas, are increasingly opting for a premium range of tires. Even premium vehicle brands such as Porsche, Ferrari, and BMW opt for premium tires as the quality of tires directly affects the drive quality and performance.

The Global Premium Tire Market is expected to grow at a CAGR of 9.72 percent for the 2013-2018 period. TechNavio analysts have identified the top 5 premium tire companies aiding market growth during the forecast period:

	“Goodyear, which is the OEM provider to several automobile manufacturers, is currently expanding its geographical reach and increasing its market share. It recently built a new manufacturing plant in Pulandian, China, to increase its production capabilities, strengthen its supply chain, and gradually move to a stronger market position. It has launched various new products in the market to maintain its position and is known for its improved quality and durability.”
	“Pirelli has a strong focus on premium tires and generates around 70 percent of its revenue from premium tire sales. It has a strong presence in the Americas and the EMEA region, and is enhancing its presence in the APAC region. It is focused on improving the fill rates and introducing improved premium products on a regular basis. It has always differentiated itself from its leading competitors by placing extra emphasis on the Premium Tire segment.”
	“Continental has an extensive portfolio of tires and tire-related products with a strong technical support team, which helps it to remain a leading vendor in the market. It is currently developing highly advanced designs for tires. It has a strong presence in the US, which is the major market for premium tires.”
	“Bridgestone has a diversified geographical presence, which helps to maintain its position in the market. It earns a major part of its revenue from the US, followed by Japan and Europe. For its operations, it is expanding both vertically and horizontally to reduce its operational costs and increase its market share. It recently built a new manufacturing plant in North America that increased its operational capabilities. It is also expanding its plant in Kitakyushu, Japan, which will strengthen its supply chain management, shortening the demand-supply gap.”
	“Michelin has over 100 manufacturing facilities around the world, 17 of which are located in North America. It includes four brands: Michelin, BFGoodrich, Uniroyal, and Oliver. It is planning to expand its geographical presence and increase its market share. It is in the process of building new manufacturing plants in Brazil, China, and India. By 2020, it plans to expand its production capacity by 50 percent to meet the increasing demand for tires. It has decided to increase its capital expenditure, which will help it to realize its business objectives. Recently, Michelin formed a joint venture with Shanghai Huayi Co. to expand its limits in China. It also formed a joint venture with Double Coin Holding Ltd. in China to produce and sell tires under the Warrior brand, which will strengthen its position in China and globally.”