Tyre businesses need to keep pace with megatrends – GiPA UK

Quentin Le Hetet, general manager of GiPA UK, presented a whistle-stop tour of current global automotive megatrends at the Tyre Industry Conference 2018, focusing on why tyre businesses need to keep on top of developments, despite the challenge posed by the pace of change. Megatrends discussed included car ownership and move to the car as a service, consolidation in the tyre and auto parts industries, the connected workshop, and new marketplaces, such as those presented by developing online players.

In tyre distribution, Le Hetet also focused on a startling pair of statistics. In the UK, 23 per cent of garage visits are “tyre entries,” i.e. visits in which fitting a replacement tyre is a purpose. This compares to 51 per cent in Germany – the impact of tyre legislation. However, only six per cent of these are shared by OEM group garages (in dealerships, et cetera.) This leaves a lot of market share for car dealership groups to compete for, according to Le Hetet, who explains that this is a space OE suppliers want to grow into. Consolidation in the tyre distribution sector may see this figure grow too. PSA Group, for example, has been developing its Eurorepar garage business in European markets, and has recently made the move into the UK, converting independent garages to Eurorepar outlets.