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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Hankook Tire concluded Round 2 of the 2026 FIA World Rally Championship, Rally Sweden, on 15 February in the Umeå region, where its Winter i*Pike SR10W tyre was put to the ultimate test. As the championship’s sole rally tyre supplier, Hankook equipped all competing crews with this dedicated winter tyre, which features specially engineered ice-rally stud pins. Designed to conquer the most severe icy environments, its asymmetric tread pattern works in tandem with the studs to provide exceptional grip, powerful braking and unwavering high-speed stability on frozen surfaces.

Rally Sweden, first held in 1950, is unique on the calendar as the only event contested entirely on snow and ice. Crews were challenged by 18 special stages covering around 300 kilometres, with competition intensified by speeds reaching up to 200 kmph and rapid temperature fluctuations. These punishing conditions demanded precise car control, reliable tyre traction and steadfast braking performance, making the choice of the Winter i*Pike SR10W critical for success.

Following a fierce contest, Toyota GAZOO Racing’s Elfyn Evans and co-driver Scott Martin claimed victory by a margin of 14.3 seconds, securing their second consecutive win in Sweden. Having also finished second in the season opener at Rallye Monte-Carlo, this result propelled the pairing to the top of the championship standings with 60 points.

The WRC now turns its attention to the formidable Safari Rally Kenya, scheduled for 12 to 15 March 2026 near Naivasha. This event is renowned as one of the most gruelling on the circuit, where crews must navigate extreme heat, mud from heavy rainfall and rapidly changing weather.

Hankook’s commitment to the sport extends beyond event supply. The company continues to refine its high-performance rally technology through intensive collaboration with the FIA and major automotive manufacturers, having completed over 2,000 kilometres of real-vehicle testing across eight countries. With its exclusive tyre supply agreement for all WRC classes covering the 2025 to 2027 seasons, Hankook is reinforcing its premium brand identity and solidifying its leadership in motorsport engineering.

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Ecolomondo Corporation, a leading Canadian innovator in sustainable scrap tyre recycling technology, has appointed Craft Capital Management, LLC as its strategic investment banking advisor. This partnership is designed to bolster Ecolomondo’s capital markets strategy, with a focus on financing initiatives and a planned uplisting to the NASDAQ. Securing this position is a key step for the company to obtain the necessary capital for its global expansion.

Eliot Sorella, Ecolomondo’s Executive Chairman, highlighted that Craft Capital’s successful history of providing capital solutions is well-aligned with the company's goal to scale up as a major supplier of recovered carbon black and tyre pyrolysis oil. These materials are produced using Ecolomondo’s proprietary Thermal Decomposition Process. As worldwide demand for circular and sustainable materials grows, this advisory engagement is seen as a vital move to advance the company's market position and support its next growth phase.

Craft Capital, a full-service brokerage firm with over a century of combined financial experience, offers customised investment banking services and connects clients to a broad network of family offices and institutional investors.

Sorella said, “Craft Capital’s proven track record in delivering capital solutions aligns strongly with our strategy to scale as a leading producer of recovered carbon black (rCB) and tyre pyrolysis oil (TPO) using Ecolomondo’s proprietary Thermal Decomposition Process (TDP). As global industries accelerate their transition towards circular and sustainable materials, this engagement is an important step in advancing our capital markets strategy and supporting our next phase of growth.”

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Continental is set to make a significant impact at the upcoming Tire Technology Expo in Hannover with a strong presence at the technical conference scheduled for 3 March 2026. The company will kick off the event with a major presentation centred on the evolution of tyre technologies designed to meet the demands of autonomous driving. Dr Andreas Topp, who leads Platform Development and Industrialisation for passenger car tyres at Continental, will illustrate how the vision of autonomous vehicles is transitioning into everyday reality and how the tyre manufacturer is proactively developing innovative solutions to support this shift.

In addition to the opening session, Continental experts will deliver three further presentations, each addressing critical areas of tyre science and environmental regulation. One of these will explore the use of recovered carbon black derived from end-of-life tyres as a filler material. Professor Jorge Lacayo-Pineda, a specialist in materials evaluation, will delve into the complexities of identifying this material within vulcanised rubber compounds. Recovered carbon black, primarily obtained through pyrolysis, represents a milestone as the first industrially scalable filler sourced from discarded tyres. It is not considered a direct substitute for conventional carbon black but rather a distinct category of filler due to its unique composition, which includes carbon residues and a specific thermal background. Professor Lacayo-Pineda will examine the technological and regulatory possibilities that arise from detecting this material in new tyre compounds, focusing on reliable identification techniques such as electron microscopy and molecular spectroscopy.

Another key presentation will broaden the conversation around tyre emissions. Dr Frank Schmerwitz, a senior test engineer specialising in tyre wear, will address the limitations of current discussions that predominantly focus on tyre and road wear particles. He will highlight additional pathways of mass loss that are not captured by conventional measurements. His talk will consider the release of nanoparticles, the persistence of wear residue on road surfaces and the chemical degradation of this material due to environmental factors like oxygen and ultraviolet light, aiming for a more complete scientific picture.

The final presentation will tackle the complexities of modern tyre development in the context of new regulatory frameworks. Dr Pavel Ignatyev, an expert in rubber friction and wear physics, will discuss how the introduction of standardised abrasion limits and measurement methods under the Euro 7 regulation is reshaping innovation in the industry. He will explain the various parameters influencing tyre wear and how they interact with these new requirements. Through simplified models, he intends to demonstrate the intricate nature of tyre wear and outline the collective challenges that remain for the industry, emphasising that a deep understanding of these dynamics is crucial for translating regulatory mandates into effective technological advancements.

Dr Topp said, “The future of self-driving vehicles has begun. We are developing tyre technologies and products that meet the unique technical requirements of these vehicles. This includes topics such as interaction with smart vehicle dynamic controls, optimised fleet operations and tailored solutions for specific use profiles.”

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The concluding day of 2026 F1 Pre-Season Testing at the Bahrain International Circuit saw Charles Leclerc set the overall fastest lap of the entire six-day programme. The Ferrari driver delivered a time of 1:31.992s on the C4 compound Pirelli tyres during the final hour of running, improving by eight-tenths of a second on the previous benchmark established by Kimi Antonelli. This performance placed him ahead of Lando Norris in the McLaren, who recorded a 1:32.871s on the C3 tyre. Max Verstappen and George Russell followed, with times of 1:33.109s and 1:33.197s, respectively, both also set on the C3 compound. Notably, none surpassed Leclerc's own leading time on that particular compound, a 1:32.655s. Pierre Gasly rounded out the top times, utilising the softest C5 tyres to post a 1:33.421s.

The C5 compound saw limited use on the final day, employed only by Alpine and Williams for short-run simulations. Aston Martin, despite having the tyre available, opted not to run it and instead completed just six laps on C3s before their session was curtailed. In contrast, teams focused on different aspects of performance. Gabriel Bortoleto and Arvin Lindblad set the pace on the harder C1 and C2 compounds, respectively. The day was also notable for the absence of several drivers, including Fernando Alonso, Lewis Hamilton and Alex Albon, who did not participate in any track action.

Beyond outright speed, teams dedicated significant effort to long-distance evaluation. Gabriel Bortoleto completed 25 laps on the C2 compound for Audi, while Esteban Ocon undertook 24 laps on C1s for Haas. Ocon was also the sole driver to run intermediate tyres, completing four laps to assess front wing behaviour. Over the entire six-day test, a total of 41,366 kilometres were covered across all 11 teams, a distance exceeding the Earth's circumference. The C3 compound proved the most popular, accounting for 61 percent of all laps. In total, 591 sets of slick tyres were utilised throughout the pre-season, with 326 of those deployed in the final three days alone.

Mario Isola, Pirelli’s Motorsport Director, said, “The radical changes introduced to the cars have inevitably shifted the teams’ focus towards power units and aerodynamics rather than tyres over the last few days. The final stages of testing are usually dedicated to optimising the car-tyre package, but it is clear some teams haven’t reached that point yet. Generally speaking, track feedback has been consistent with our simulation expectations. Drivers were able to gain confidence with the entire Pirelli range through both performance trials and long runs, even using the C4 and C5 compounds which aren’t particularly suited to a circuit like Sakhir.

“Mechanical resistance appeared strong across all options, with no signs of graining or blistering. Degradation levels are almost certainly higher now than what we expect for the Bahrain race, when temperatures will be lower and cars more developed. A central theme this season will certainly be balancing temperatures between the axles, especially ahead of the first race in Melbourne. The lower loads of a street circuit might require more intensive tyre preparation or differentiated tyre blanket temperatures, particularly in qualifying. In any case, it will be interesting to discover in Australia how much teams have been ‘sandbagging’ their engine power to avoid showing their hand. We only have to wait a couple of weeks to see the true pecking order.”

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