The tire business can be a brutal one – low growth, low margins and extreme competition. Tire makers are at the mercy of ups and downs of raw material prices. About half of customers are largely indifferent to the brand of tires they buy. Price is the main differentiator. But industry analysts say the rise of EVs provides tire makers with the biggest growth opportunity they have seen in decades. AlixPartners estimates that tires on EVs can cost 20 percent more and require replacement 50 percent more frequently. Watch the video above to learn more.
Chapters:
00:00 – 01:16 Title card – Why tire companies love EVs
01:23 Chapter 1 – A tough business
03:37 Chapter 2 – EV revolution
09:31 Chapter 3 – The potential
Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Audi, Chevrolet, Continental, Ford Getty Images, GMC, Kia Michelin, Polestar, Porsche, Rivian, Tesla, Volkswagen
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Why Tire Companies Love EVs