With increasing technology and service-oriented approach and thrust on transparency in the pursuit of delivering service excellence towards the end-user, tyre dealers will evolve to be seen as providing the values expected of a specialist and not a generalist, says Satish Sharma, President (Asia Pacific, Middle East & Africa) and Whole Time Director, Apollo Tyres. 

“In terms of the changes, we will see more transparency ushered in by the technology and change in mindset. The new generation is more data-oriented, so testing and other data will be asked. I believe the service aspect and data-oriented approach will get expanded. A ‘24x7 for 365 days’ kind of service availability will be seen. Retailers are still looked upon as generalists. More and more specialisation will be happening, as the tyre is an engineering product and you want the right quality, assurance and replacements. So, retailers will emerge as specialists. There are also some regulations, such as tyre labelling and end-of-life, coming in. I’m sure the tyre retailers will have a role to play in the regulatory changes that are happening. So, the evolutionary journey is happening in bits and pieces. But given that the change is speedy, we are hopeful that this is the direction we will go,” explains Sharma.

The Indian tyre retail business has witnessed tremendous changes in the recent past. Earlier, a tyre dealership business was not seen as an aspirational choice. Still, with the evolution of finance for commercial vehicle tyres, the emergence of passenger car and motorcycle tyres as a specialised business – which offers a lot from the service angle – is producing a new breed of entrepreneurs who see the tyre retail business as a vocational profession. 

“Today, we are seeing entrepreneurs who have gone from a single retail outlet to multiple retail outlets looking at the benefits of covering the geography. Many of them are also having multiple retail outlets with various brands. On the two-wheeler tyre side, the traditional tyre retail outlet is not able to cater to that market, but they are available at mechanical shops or even puncture shops. At some places where the scaling has happened, one has also seen the entry of some professionals,” adds Sharma.

Tyre service is also emerging as a source of revenue. Specialisations around fitment, alignment balancing, nitrogen filling and other services have generated a sizeable portion of revenues. As radialisation is happening in the commercial tyre segment, dealers are also expanding their business on highways.

New challenges are cropping up for dealers with the emergence of new business models, where tyre companies are catering to end-users directly through supplying tyres on rent or on a CPKM basis and selling on their own websites. However, Apollo Tyres prefers to keep its partners as an integral part of its new business models. Sharma explains, “Providing tyres as a service is happening in the commercial tyre segment, where few tyre companies go directly to the end-user. However, Apollo Tyres has never gone that route and does not believe in going that route. We sell and service only through our dealer partners, and that’s been our preferred choice. When we opt for new business models, we always take care of channel conflict in our organisation. Even if we have to provide services directly to the end-user, we will train our dealer partners to provide the services. That’s the way we handle it. And I believe that’s the right way to handle it. In the passenger tyre segment, many local dealers are selling tyres online with the help of e-commerce portals. That’s why you normally won’t find the desired product on these e-commerce portals, and it’s not a very efficient business as of now.

Apollo Tyres had launched an e-commerce portal, shop.apollotyres.com, for passenger car and two-wheeler tyre customers two years ago to cater to the online selling tyres business. With the portal, consumers can purchase their chosen tyres online and book an appointment with Apollo Tyres’ dealer nearest to their location to get the tyres fitted and serviced. The Indian tyre major also has a portal for commercial vehicle tyres. Consumers can directly buy tyres on the portal, but the commercial transactions are passed to the dealer servicing the customer’s needs. “However, this business model, again in its nascent stage, is not as if it’s put the world on fire. For e-commerce for tyres, there’s a long way to go, simply because the customer realises the quality of service you can actually get by going to the dealer counter and having a good relationship with a tyre specialist – because you need the services repeatedly. As the bouquet of services at a tyre dealer is increasing, you can go to a tyre dealer even for a puncture. If this business model takes off, we are already a foot inside the door,” adds Sharma.

Apollo Tyres will launch a digital experience centre to reach its targeted consumers widely. However, the company firmly believes that a real- life experience of the product better impacts the consumers. In line with this, it is making efforts to train its dealers, setting up a standardised format for its branded retail outlets such as Apollo Zones, Apollo Corner, Apollo Points and Apollo CV Zones. “With our branded retail outlets, we have changed the perception of a tyre shop from a dusty looking shop to a dust-free and air-conditioned outlet, where products can be browsed on digital screens. Products are placed so that one can touch and feel them. Our outlets are very friendly and gender-neutral to encourage women to purchase tyres independently. So, we engage our customers with products more meaningfully,” explains Sharma.

Apollo Tyres is also focusing on expanding its footprint in the rural area. With local entrepreneurs and service forces called rural experts, Apollo Tyres has around 4,500 touchpoints, including about 250 AVK/ ARD and more than 1,000 REDs , in the rural network at the start of FY21 . It also launched the ‘Apollo Tyres Sarpanch’ initiative in March 2021 to enable it to have the most comprehensive tyre distribution network in the rural segment. 

Apollo Tyres recently has launched its Vredestein brand in India. With the brand, the company will initially cater to the demand for tyres between 15 inches and 24 inches, which are generally needed for the luxury and executive premium segment. The company is also working with BMW to supply the Vredestein tyres for BMW 2 and BMW 7 series as OE fitment. “We are cherry-picking the business partners. To create awareness, we are associating ourselves with targeted communities and consumers. We are also engaging ourselves with golf tournaments and providing riding experiences on the F1 tracks,” adds Sharma.

In the tyre retail business, data will gain importance to generate new customers, retain older ones, serve them and manage the business more efficiently. However, dealers may be good at maintaining the balance sheets but they are yet to get hands-on with generating data on the best tyre models, sizes, brands and fast-moving inventories. As per Sharma, “Today, dealers have mistrust with the company manufacturers, and they don’t want to share their data on inventory, the movement, speed and velocity of the inventory at the same time. But as the dealers are getting more and more into digitalisation, they’re seeing the benefits of data. Their minds are also opening up. And so, it’s a journey which needs to be travelled.”

Bridgestone will supply tailored-made tyres for Lamborghini’s Huracán STO, which will be launched in 2021.

Bridgestone ensured the high-performance tyre can maximise the Huracán STO’s traction, handling, control, and extreme overall performance.

Key to the tyre’s success in maximising the super sports car’s performance is the combination of pattern and cavity design. The Potenza tyres apply an asymmetric tread design for enhanced steering response and cornering stability, and an internal crown structure that distributes footprint pressure evenly when cornering.

As well as the road-focused, custom-developed Potenza fitment, Bridgestone will also be providing a track-oriented, road-homologated version of the tyre that applies “race” technologies to maximise the vehicle’s track performance, especially in dry conditions.

Steven De Bock, VP Consumer Replacement and OE at Bridgestone EMIA, said, “It’s been a pleasure for our team to work so closely with Lamborghini for the first time, and on such an exciting project. The Huracán STO is an incredible piece of engineering that deserves a custom tyre that can fulfill its full potential. I can proudly say that Bridgestone has delivered such a high-performance tyre. It has been fantastic for the team to have worked on a project that is at the forefront of technology in so many ways.”

Hankook, one of the major global tyre brands, has started testing and development operations at its new ultra modern facility in Spain.

The testing facility has been set up on the premises of the Applus+ IDIADA Group and can also cater to European premium car manufacturers that have their own demanding tyre tests. The facility is completely automated and will host a 20-member team from the Spanish testing centre, which is affiliated to the Hankook Europe Technical Centre.

Klaus Krause, Head of European Research and Development Centre, said, "With the further expansion of our testing capacities in Spain, we are reaching the next level together with our local partner Applus+ IDIADA."

He also added, "We are confident that the newly installed testing facilities in particular will significantly improve our efforts to provide the best tyre testing conditions and services to our employees and customers. In addition, we will also be able to conduct significantly more tests on site." (TT)

ASCENSO introduced a construction tyre - BLB 730- which is used for boom lift vehicles used in construction and other industries. It comes with several features that cater to the unique needs of aerial lifting equipment.

The BLB 730 tyre is available in different sizes to fit various boom lift vehicles. This range of sizes provides versatility and compatibility with different types of aerial lift work platforms.

“ASCENSO's BLB 730 tyre is a significant advancement in specialised equipment for the construction industry. It focuses on load capacity, stability, traction, and durability to improve the performance and safety of boom lift vehicles. Whether working at heights or manoeuvring on tough terrains, this tyre offers reliability and durability for efficient operations,” said the company in a statement.

The BLB 730 tyre is built to handle heavy loads and stabilise boom lift vehicles. It has solid lugs and a more extended shoulder design, which ensures good traction and prevents slipping during operation. This is important for safely carrying heavy weights at high elevations. ASCENSO has used a special rubber compound in making the BLB 730 tyre, making it durable and long-lasting, resulting in less downtime and more productivity on construction sites.

To make the tyre even better, the company has optimised its inner volume to reduce tyre fill consumption, reducing the risk of tyre punctures, minimising the need for maintenance, and keep the vehicles running smoothly.

Falken Tyre Europe is an official IHF Men's World Championship 2023 partner for the upcoming tournament, the company has announced. The tournament is taking place at nine venues in Sweden and Poland from 11-29 January, 2023. Falken Tyre claims that the partnership was organised by the sports marketing agency SPORTFIVE. SPORTFIVE is responsible for exclusive marketing and media rights for all IHF World Championships until 2031.

Falken Tyre claims that this is its second agreement with the International Handball Federation. In addition to title and logo rights (Official IHF Men's World Championship 2023 Partner), the company has also secured advertising rights, including the Falken logo in each goal and centre circle of the courts, as well as the presence of Falken branding in the official tournament social media communications and print materials. According to Falken Tyre, this is complemented by 30-second video ads that will be shown on the big screens in the nine sports halls before the start of each match and at half-time.

Sharing his views, Robert Müller von Vultejus, Chief Growth Officer at SPORTFIVE, said, “With Falken, the IHF World Handball Championships have secured a great partner who is positioned with far-reaching influence in the relevant core markets. We are delighted to have been able to bring two global partners together for one of the most exciting sporting events of next year.”

Markus Bögner, COO and President of Falken Tyre Europe GmbH, explained, “Handball isn’t just of great importance in Europe, but all over the world, which has led us to partake in this top-level tournament once again. The fact that the international tournament is taking place in countries that are among our core markets is another great reason for our involvement. We can also look back on a long partnership with our colleagues at SPORTFIVE, who always offers us excellent opportunities that are an excellent fit for the Falken brand, which stands for enthusiasm, performance and achievement.”