UK trend towards Budget segment continues in smaller UHP tyre dimensions – GfK

Retail sales at the lower end of the UK’s ultra-high performance tyre segment have seen a trend away from premium tyres, with the third-tier Budget segment continuing to increase its share, according to the latest panelmarket data from market analyst GfK. In last year’s edition of our feature on the UHP Tyre segment, Tyres & Accessories noted that there are three long-term factors at play in causing the sector dynamics we are currently witnessing: OEMs’ continued move towards the specification of 17” and 18” tyres on mass market, sub-premium car models; macroeconomic conditions in the UK, which have led to increasingly expensive retail goods at the same time as soaring borrowing costs and extremely soft growth in both the economy and wages; and the expansion in availability of low-cost tyres from sub-Premium, sub-Mid Range tyre manufacturers.