How do you view the changes happening in tyre retailing, and its future course into a digital world?

I was born and raised in the tyre industry. My dad had a wholesale company along with 13 retail locations so I had the opportunity to work on the wholesale and retail side. Retailers have always faced challenges, whether it be size proliferation where you look back 25 to 30 years ago where 80% of the market was dominated by 10 sizes while today 80% market is dominated by 250 plus sizes. That poses challenges that retailers have to manage because it’s not in their domain, it’s all about tyres and sizes and it’s their specialty. 

The biggest challenge that I see retailers being faced with now is the new digital age. It’s out of their comfort zone! They have to rely on marketing themselves through social media platforms and Geofencing. So now retailers have to sit down and think of how they can be different and how can they attract an audience and bring people through the door, rather than how it was before. This is an aspect of the business that is out of their comfort zone. Many do not understand it and have to rely on third party software’s or consultants. The market structure in the US is still predominately driven by independent tyre retailers, where over 65% of the industry is run by ‘Mom and Pop’ shops. Everybody wants to think about the large chains but the bulk of the business is by these independent operators, and they’re competing against these Giants that are trying to gain that customer base. 

What strategies does TGI adopt in the current changing business environment?  

Size proliferation is a big driver and one of the things that benefits companies such as us Tire Group International, is that we are a large wholesaler with large inventories & large warehouses. The reason for that is we have to stock a lot of tyres because retailers no longer have the luxury to stock tyres. They may have financial constraints, space constraints, etc , to be able to stock all the different sizes in order to service whatever car is coming through one of their doors. So, they have to rely on wholesalers like us to offer them a good solid product range. It all depends on the type of consumer coming in. Once that is satisfied then you have to meet the requirement of getting there on a timely manner to get them those tyres.

One of the things that we have been able to do is to increase the service side of our business. It's really been changing our business. It’s not about just providing tyre support. You have to have great customer service having a great relationship with your customers and being able to deliver to them more than three times a day in-order to offer what they call ‘Hot Shot’ delivery, where you get your tyres within 30 to 60 minutes to the retail location. They are heavily relying on that supply chain to be able to satisfy their retail customers.  So as a part of our strategy to bring that all together and meet the needs of today’s market, we have opened up additional smaller distribution centers so we can service regional locations as opposed to having to drive from our main hub to one of our farthest customers almost three hours away. Opening up a location closer to customers has now given us the opportunity to deliver a customer a 30 to 45-minute delivery window rather than having to wait almost a day for delivery. In Latin America which we have invested in, single shop operators and multi branded stores are very prevalent and they rely on fast service and getting tyres to customers in a timely manner and that is something that we will continue to push on.

How much has the pandemic and its impact forced you into bringing in new changes?

The pandemic has taught us many things. Most importantly is has taught us how to lean on our digital platforms and software systems that we’ve been developing over the years. Being forced to use them more and other digital platforms has taught us a lot. Video calling has been a great tool to showcase our product line to dealers from all across. It has definitely opened our eyes to the use of technology and how important it is to have the right technology in the workplace. We felt the first impact of the pandemic when I got a call from our VP of Sales asking if one of our dealers could get a 30-60 stay on his trade receivables as he was being forced to shut down due to having to adhere to CDC guidelines. That was the start. A lot of our customers were asking for more time to sort out and figure out what was really going to happen. The pandemic was affecting all of us and this solidarity came out from everyone. People were very accommodating and understood the situation.

Surprisingly consumer demand never dropped off. For most, if you had a job, you continued to have your revenue stream coming in, but you didn’t go out to eat 2-3 times a week, you weren’t spending money on gas, on a vacation, or going out. You had to stay at home, and this led to consumers having more spending power and wanting to travel locally. Rather than air travel, people started opting for more road trips and so tyre purchases which may have been a faraway thought, now became a front and center and customers had the discretionary income for it.

Manufacturing plants were shutting down but consumer demand never dropped. These plants tried to come back but with workers going back to their hometowns and not being able to travel back, there was suddenly this supply gap in the industry that started to drive the price up but demand kept increasing. Everyone thought that consumers were not going to buy tyres or spend much on them but it was the complete opposite. Even today demand is extremely strong and supply has not caught up with it. Over the last couple of years, we have seen retailers go thought a price decline, but with the market demand increasing they are going through a price incline which is good.

What is your take on online retailing? What are its advantages as well as disadvantages?

We divide our business into many units and the online retail sector is one that has taken off in the last 3-4 years. It is the wave of the future as more and more things become automated and we adopt a ‘buying everything online’ type of world. The challenge with tyres is, you cannot just click and get them to your house, but you have to get them installed. That creates the challenge which people are trying to meet, whereby coupling the service of buying online with mobile service via appointments to get the tyres fitted. These are the challenges faced in the online sector but it is by far the largest growing sector. The online space is the first place where customers go to find out when they should buy a new tyre, what size they need and see what their options are. The challenge is, how do you put your product in front of a consumer or how can you get that consumer into your virtual door. We service a lot of B2B platforms where customers can place their orders and we ship those orders directly to the consumer. We started doing this in 2017 and this has grown by over 400% year over year.

What are the challenges in retailing multi-brand products?

Back in the days there were only single branded tyre retailers because at that time there were only limited tyre sizes. But now with so many tyres sizes available in a particular spectrum, even if you wanted to be a single brand retailer, you wouldn’t have all the tyre sizes that you would need to be able to service every consumer’s needs. This forces you to become a multi brand outlet. It has its own challenges. No particular tyre can be branded as the best as it’s a subjective decision and so as a retailer it depends on how you are going to market it. We as a retailer need to understand what are our objectives. How we tier our products in our portfolio matter.

Which segment of tyres is more in demand than others?

In the US market, with the new import restrictions and import duties on tyres from certain countries, the biggest challenge has come in the passenger and light truck segment. Tyres which were imported and that were once available at a certain price point are now more expensive because of the cost of the duties to import them. It is estimated that with the new duties imposed on tyres imported from Taiwan alone, there is about two and a half percent of the market share of the US that is now priced out of the market. So now there is a tremendous supply gap in the passenger and light truck segment because of this new import law and the duties that have been imposed. This also works as an opportunity for those who have inventory to increase the price a bit. Passenger and light truck segment is where the demand is more but trying to secure product for that segment is now a challenge.

Do customers demand any specific features for the tyres they seek?

For the vast majority of our consumers, the main question in their mind is pricing. The second question is how good is your cheapest tyre. It’s always a mental game of price for quality. Most consumers don’t know a lot about tyres, and most of the time, the lower priced tyres are from brands that they’ve never heard off. Consumers put a lot of trust in the retailer as far as quality vs price go. From a retail side, bridging the gap from price to quality as in safety,is crucial. On the wholesale side, it’s very different. We wholesale and buy tyres on the open market and that’s where competition comes in. Profit margins and pricing plays a big part, bridging the gap between the cost, quality, exclusivity make a difference.

For the most part, general consumers don’t ask for specifics about a particular tyre, like the kind of grip or longevity it offers. But you get specific consumers who are performance oriented. An educated consumers will ask more questions about the benefits each tyre brings. Top US publications in the US ran a survey last year and about less than 20% of the consumers we get come in well informed and are looking for specific features. As per a survey done here in the USA, 80% of the time, a consumer walking in to a retail tyre shop, will buy a tyre that the counter person recommends. Customers also look at what tyre they have already on their car, and feel that those tyres served them well, but according to the survey, customers only left buying the same brand of tyres 30% of the time. 70% of the time, customers bought the tyre that the counter person recommended. So there’s a lot of power in what the counter person recommends.

What is your take on tyre manufacturers doing their own retailing? Does that affect your business?

The first here in the US to get into that was Michelin. They developed their own online platform and then Goodyear and a lot of the Tier1 manufacturers followed. But some have taken a step back. The channel disruption it was creating was more a drag on their business than a benefit. They did create a MAP pricing (Manufacturers Authorised Price). This way they wanted to make sure that their tyres were being sold at the same price across platforms and dealerships. But by setting a ceiling price on a tyre, you’re also setting a ceiling on how much a shop or tyre channel can make. Whereas if I’m selling an in-expensive brand of tyre, I can buy at my cost point and the retailer can sell it at their cost point where both make a profit margin.

There are a lot of dynamics at play. The younger the consumer becomes, when they start buying tyres, the more they’re going to look for online purchasing. The challenge is a retailer’s consumer is becoming younger and becoming more fleet driven with the likes of Uber, Lyft, etc. These fleet buisnesses are becoming more of our consumer base than an individual car owner. The old ways of going to a tyre shop and talking to the guy, having a cup of coffee and talking about tyres is over, the younger generation of buyers want to buy everything online. This is where online providers are trying to bridge the gap between product and service, as you need specialized service as far as tyres go. Automated tyre installation bays is being worked on and I think that will be the future. (TT)

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Continental marked a major milestone on 22 May 2026 during opening ceremonies for the second expansion phase of its Rayong plant in Thailand. The development includes growth for the Passenger and Light Truck Tires division and the start of radial production for motorcycle tyres.

The Rayong motorcycle tyre facility operates with fully in-house manufacturing, from rubber compounds to finished products, using modern equipment. All processes adhere to Continental’s global quality and control standards, enabling production of both radial and diagonal tyres with capacity for future expansion. A high degree of automation and automatic monitoring systems eliminate manual errors while maintaining strict quality checks at every step.

Continental’s Rayong production serves diverse riding styles, including sport-touring and adventure touring segments, with popular radial and diagonal tyre models already in production. In March 2026, the plant received IATF certification, meeting international automotive standards that guarantee continuous quality processes and supply reliability for original-equipment customers.

The expansion also reflects Continental’s sustainability commitment, with solar energy supplying about 13 percent of the plant’s electricity needs. Additionally, the project has created new jobs, strengthening the regional economy.

Christoph Ettenhuber, Head of Business Field Motorcycle Tires, Continental, said, “By expanding our facility in Thailand, we are strategically strengthening our global production structure for Continental Motorcycle Tires. Together with our established operations in our Korbach plant in Germany, we are laying the groundwork for a faster, more flexible response to market demands. Rayong is a key component of our international motorcycle tyre strategy and underscores our clear commitment to growth and state-of-the-art production processes. For our customers, this means premium quality made by Continental – no matter which continent they’re on or which roads they travel."

Sahil Agrawal, Head of Manufacturing Operations in Rayong, said, “Quality is our top priority – for our original equipment customers as well as for end consumers. Our system captures every detail: all tyres are fully traceable at every production step. Online monitoring systems such as automatic scales, profilometers and camera systems ensure that every component is within specification limits. Automation – from the green tyre spray system to automatic tool management – enables us to achieve maximum quality levels while creating an ergonomic and safe working environment.”

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Bridgestone Corporation has once again been selected as a constituent of several globally recognised environmental, social and governance (ESG) indexes, including the Dow Jones Best-in-Class World Index, the FTSE4Good Index Series, the MSCI Selection Indexes, the FTSE JPX Blossom Japan Index, the FTSE JPX Blossom Japan Sector Relative Index, the MSCI Japan ESG Select Leaders Index and the MSCI Japan Equity ESG Select Leaders Index.

The Japanese tyre giant’s continued inclusion in these rankings serves as a concrete and objective embodiment of its corporate mission to serve society with superior quality. Company leadership views the ability to sustain such ESG initiatives over many years as a distinct organisational strength.

Regarding the Dow Jones indexes, Bridgestone has been selected for the Best-in-Class World Index for four consecutive years since 2022, which recognises the top 10 percent of sustainability leaders among 2,500 major global companies. The firm has also maintained a place in the Best-in-Class Asia Pacific Index for 16 straight years since 2010.

In the FTSE Russell assessments, Bridgestone has achieved eight consecutive years of selection for the FTSE4Good Index Series since 2018, alongside the same duration for the FTSE JPX Blossom Japan Index. The company has also been included in the FTSE JPX Blossom Japan Sector Relative Index for five consecutive years since 2021. For MSCI, Bridgestone has secured three straight years of selection for the MSCI Selection Indexes since 2023 while receiving the highest AAA rating in the MSCI ESG Ratings for three consecutive years.

The company has additionally earned high marks from the international non-profit CDP, receiving an A minus rating in both Climate Change and Water Security for 2025, marking six consecutive years at the leadership level. Bridgestone also obtained an A rating in the Supplier Engagement Rating for the seventh time. Key initiatives behind these recognitions include the expansion of its sustainability business model towards carbon neutrality and a circular economy, actions supporting nature positive goals such as sustainable natural rubber and water resource management, a comprehensive due diligence system based on Plan-Do-Check-Act cycles for human rights and environmental risk and global policy execution guidelines.

Bridgestone places sustainability at the core of its management, aiming to implement and evolve its unique business model across the entire value chain from production and use to renewal and raw materials. These efforts link business operations directly to the realisation of carbon neutrality, a circular economy and a nature positive world.

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Tegeta Green Planet and Shine Energy, both affiliated with Tegeta Holding, have launched a joint educational initiative to raise environmental awareness and a sense of responsibility among young people. The project addresses modern challenges such as environmental protection and sustainable development.

Company representatives are visiting schools across Tbilisi to hold informational meetings, presentations and workshops. The programme begins with presentations, followed by interactive games and activities designed to help students retain the information. At the end of each session, participants receive symbolic gifts and prizes as motivation.

Tegeta Green Planet focuses on teaching students the principles of specific waste management, including how to properly handle used tyres, batteries and oils. The sessions explain why proper waste management is essential for environmental protection and how it connects to the circular economy. Meanwhile, Shine Energy educates young people on the importance of energy, its everyday use and why developing renewable and sustainable energy resources is crucial.

The initiative is not limited to schools. In the near future, both organisations will expand their efforts to universities, aiming to broaden awareness about environmental protection, waste management and energy efficiency. The ultimate goal is to foster environmentally responsible attitudes among the younger generation, helping build a more sustainable and conscious society.

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Zeon has been recognised as a Supplier Engagement Leader in the 2025 Supplier Engagement Assessment (SEA) conducted by CDP, a United Kingdom-based international environmental nonprofit organisation. This achievement represents the first time the company has received the highest possible rating in this assessment.

The evaluation measures how corporations address climate change within their supply chains, focusing on responses to the CDP Climate Change Questionnaire across five critical areas. These include governance, emissions targets, Scope 3 emissions management, risk management and overall supplier engagement strategies.

Zeon earned the top rating for its efforts to reduce greenhouse gas emissions through supplier collaboration, a group-wide initiative, alongside continuous dialogue maintained via procurement activities. Guided by its philosophy of contributing to planetary preservation and human prosperity, Zeon remains committed to sustainable management. The company reaffirmed that it will continue working with suppliers and other stakeholders to tackle climate change and meet societal expectations.

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