Benefiting from the greater improvements on raw materials and rubber compound, more and more tire enterprises have launched super long mileage TBR tires. 400,000 to 500,000 kilometers TBR tires are prevailing nowadays, some companies’400000 kilometers TBR tires that are retreadable up to 2 times, make the overall mileage 800,000 to 1,000,000 kilometers. These super long mileage tires bring great competitiveness to Chinese tires in the global market, and help truck drivers and fleets save their cost on tires. On the other hand, it will give big changes to the sales channels of TBR tires.
1.) 400,000 kilometers tires have more cost-efficiency.
For instance, in retail market, a tier one brand TBR tire that can run up to 300,000 kilometers, sells at USD260, and the cost per kilometer is USD0.00087. While a budget tire that can run up to 200,000 kilometers, sells at USD130, the cost per kilometer is only USD0.00065. Wise truck drivers would pick budget tires without a second thought.
If a 400,000 kilometers tire sells at USD260, the cost per kilometer is only USD0.00065, and truck drivers do not need to pay unnecessary fee or time on changing tires from time to time. In addition, long mileage quality tire comes with better safety performance. It is obvious that 400,000 kilometers tires are more cost-efficient, no wonder a growing number of truck drivers has shifted to these long mileage tires, and the demand has exceeded the supply. 400,000 plus kilometers tires are biting up more market shares of budget tires.
2.) The tire changing period has been doubled.
If a truck with budget tires runs 200,000 kilometers per year, the tires need changing once a year.
However, 400,000 plus kilometer tires can extend the tire changing period to 2 to 3 years. If the tires are retreaded, the mileage could go up to 1 million kilometers, the tires can last as long as the truck.
TBR retail shops face big challenges
2021 is a tough year, TBR retail shops meet big challenges in the sluggish market. Tire factories’ announcements on price increase had little help on the sales. Because distributors (importers) can hardly pass the price increase to retail shops, retail shops dare not increase prices in fear that truck drivers would buy tires from others. 400,000 plus tires that significantly extend the tire changing period even make the competition fiercer. The shuffling is about to come to TBR market.
TBR retail shops could refer to the following advices in order to survive in the fierce market.
1. Multi-business strategies.
Develop services on engine maintenance, power train, changing parts, such as clutches, transmission, axles, and offer roadside service.
2. Maintain good customer relationship
Longer tire changing period brings loose contact between retail shops and their customers. However, retail shops can consolidate their customers’ relationship by building files showing when to change the tires and the data of the tires on their customers ’trucks. And tire shops could also provide clean and neat lounge for their customers.
3. Unite together
Several retail shops could unite together to make it a chain to integrate the purchasing and services, to develop truck fleet customers together instead of competing with each other.
4. Institutional truck fleets
Big logistic companies have been expelling individual truck transporters from the logistic business, institutional truck fleets will dominate the market in the future, which could be another customer source for retail shops.
In general, the 400,000 plus kilometers tire is the trend, it is like a powerful weapon, take it then we get better, leave it then we get beaten. We all need to get ready for opportunities and challenges.