UHP Tyres – More Than a Tuning Accessory

Wide and super wide tyres are developing into the first choice tuning accessories for cars, usually in combination with trendy light alloy wheels. One out of every four people interested in tuning fits their vehicle with alternative wheels, and a majority of these bump up the size of their wheels by one or two inches. Of these there are two kinds of customer – those that upgrade their rims but keep the same tyre size, and those that ‘tune’ their alloys, switching for more modern designs, while replacing tyres like-for-like.

In recent years the market has witnessed a proliferation of increasingly powerful vehicles. These arrive direct from the factory already fitted with high speed tyres. And in this respect Europe registers some of the largest growth rates. Manufacturers are already fitting their vehicles with more and more W, Y and Z rated tyres, some of which feature replacement requirements that can only be satisfied by the same or higher speed ratings (see chart 1).

Motorists who purchase some of the sportier chassis may also own vehicles capable of chip-tuning (this type of car is growing fastest in some continental European countries). Others may choose to improve the aerodynamics of their car and gain a few more miles per hour, perhaps making a higher speed rating necessary. The same also applies to classical wheel/tyre tuning. Gaining two inches in tyre size is often connected with a lower ground clearance setting or a sport chassis, and this is often means that V/W tyres would need to be fitted.

In Europe the high-speed sector is a growth market, however each country has specific national characteristics. The largest national market in terms of total high-speed share is Germany. At this point it is worth pointing out that Germany is the only country in Europe that has motorways without any speed limit. It is also worth noting that Germany is the domestic market of some particularly sophisticated vehicles like Mercedes-Benz, BMW, Audi and Porsche. These brands originate from Germany, but consumers know that they have also conquered traditional markets such as Great Britain – Rover cannot compete in global market anymore; Jaguar belongs to Ford; Mini has only survived because of a cash infusion from BMW; and Bentley is only maintaining its ground because of support and know-how from Volkswagen. Similarly Rolls-Royce has little chance of standing alone. The result is, a BMW is purchased instead of a Rover. And since a Jaguar is not as ‘British’ as it used to be, why not buy a Mercedes? And along with these vehicles high rated tyres come into the market. The fact that British motorways have upper speed limits is of no consequence: The vehicles can theoretically drive at 250 km/h, and therefore need a W speed index or higher.

Compared with the European Union, the British market has something of a high performance deficit. While in other European aftermarkets premium brands (Michelin, Bridgestone, Continental Goodyear/Dunlop and Pirelli) have more than a 40 per cent share of the market, in this country they represent less than a third, according to Continental data. (see Charts 2a and 2b) Although these brands try again and again to improve their product-mix, what will are the consequences of leaving S/T tyres, 80 per cent aspect ratios or the 14 inch size to the budget and second brands? While the budget segment is given to Barum, Kormoran, Sava, GT Radial, Wanli and others, the second brands of the large companies (BFGoodrich/Kleber, Firestone, Uniroyal, Fulda) compete with Yokohama, Toyo, Kumho and Hankook in the quality segment. And all of these companies have the goal of achieving a better product-mix themselves – they all aim to sell high-speed tyres, although they accept that this is only possible with a lower price.

The second brands just don’t have the image that the premium brands have developed over the course of many years. So how can these companies poach the market leaders’ territory? Going the original equipment route is hardly possible – here Michelin, Conti and Co maintain their strongholds with large and sporty vehicles, although some modest successes with smaller vehicles can be attributed to the Koreans. The likes of the E-class, the Jaguar or the 5-series are a long way off. Motorsports are considered to be an effective tool, although this route can also be expensive. Kumho and Hankook have made a start by entering into respectable racing series, competing with more established motorsports brands like Yokohama and Avon.

Another way of developing image is to enter into a commitment to tuners. The large tyre brands staked their claims to the large tuners long ago and this is supported by their foothold in OE business. The thinking behind this is: “If you want to improve your BMW you will do well to upgrade it according to an expert BMW supplier’s assessment.” In this case it makes sense to try and slip in as “junior partners” with an important tuner, as Yokohama has done with Brabus. Others fight for “the second line tuners” like Toyo (with Breyton, Kleeman and mtm) or Kumho (Nothelle). Association with a tuner, though, is not everything and may not reflect the realities of the market.

Since the end of the 1980s, Continental has focused intensively on satisfying this clientele and up until now has not been able to create an image with the same associations of ‘sportiness.’ At the same time that Continental went after the tuners, Pirelli, the inventor of wide tyres, saw itself as so sporty, sexy and virtually synonymous with high performance tyres that it neglected this clientele. Goodyear encountered some minor difficulties of its own. At this time production managers held the reins in terms of production. When marketing or sales managers asked for a response to public demand for, say, a few hundred 18 inch tyres, more often than not this was met with nothing more than a wry grin. Each enterprise has its own story.

The tuners were also forced to react to consumer preferences. Mercedes, BMW and Audi all discovered the profit yielding from “basic tuning” for themselves, making life harder for some tuners. The tuners then had two options: Either offer more than the carmakers’ tuning departments (like AMG or Quattro) and instead fit the car with one, two or three inches more, or turn to other car brands.

This could mean an ultra luxury brand. For example, someone who spends a lot of money on a Ferrari is not interested in owning a red racer that looks exactly like the other 599 limited sport editions. This kind of consumer would therefore be willing to put another five-digit figure directly into further modification of their Maranello super sports car. Alternatively the tuner could turn to a brand that previously did not have a sporty image. Who would have thought that in the biggest tuning market in Europe (Germany) Seat would be the most popular car, according to the number of inquiries received by the German tuning association VDAT? Just behind Seat is Dacia, which has only recently sold its first Logan models in Western Europe. In addition there are companies like Brabus that decided to tune a Smart car, so not only is the appearance improved, but high speed tyres are necessary as well.

The growth of high performance and ultra high performance market across Europe continues unabated. Impetuous growth means boundaries that dictate what is ‘normal’ have continued to shift towards ever more exclusive tyres. The problem is that this causes price erosion for both tyres and light alloy wheels. Only a few years ago, 16 inch tyres were sucked into that vortex, and at present margins in the 17 inch field are becoming smaller and smaller. This all means that is only a question of time before the floodgates to the protected 18 inch area are opened. The fist locks have already been unbolted.

The statisticians at Europool and in the offices of the well known manufacturers prove that for the first time run-flats, have exhibited some magnificent growth rates. 216,569 summer fail-safe tyres and 213,852 of the winter variety were sold in Europe in 2004, which means growth rates of 266 and 342 per cent respectively compared to 2003. The introduction of these products follows the same pattern as many other accessories – a rather ‘top down’ approach. This means that luxury vehicles and sports cars get the new technology first, before the lower market segments are gradually opened up. But there is an exception to this rule. The Mini is really a small car, but at the same time it is at home in the premium segment, perhaps occupying a category of its own. Whether for aftermarket or tuning, the triumphant advance of UHP tyres does not appear to even have an end in sight.