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This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.

Light Truck tires post 3.5% US unit growth in 2018

March 12, 2019

New York, NY, March 12, 2019 (GLOBE NEWSWIRE) -- While the US tire retail market still faces challenges, GfK point-of-sale (POS) data from outlets nationwide points to important opportunities in a few key segments of the marketplace.Comparing full-year data from 2018 and 2017, GfK found that Light Truck (LT) tires grew in units by 3.5% year over year, with LT rims of over 20 inches posting the highest jumps in both sales dollars (17%) and units (20%). This follows a tumultuous 2017 for LT tires, which saw the category -3.1% unit decline.The LT segment also posted significant upticks in units and dollars for 17-, 18-, and 20-inch rims – but 16-inch models dropped off precipitously. (See Table 1 -- image.) This echoes a broader industry trend toward purchases of larger rim sizes; among passenger and SUV (collectively known as “P-Metric”) tires, models of 19, 20, and over 20 inches registered unit and dollar growth, while rims of 16, 15, and under 15 inches declined.In addition, GfK’s data shows that some tires rated for higher speeds – and commanding higher prices – are also enjoying unexpected unit surges. In the Light Truck segment, for example, “S”-rated tires – which can accommodate speeds of 120MPH and up – grew 5% in unit sales YOY. Overall, high-rated “Q,” “R,” and “S” tires accounted for over 95% of LT unit sales in 2018.Representing nearly 35,000 points of sale nationwide, GfK’s POS tire panel provides unprecedented data to inform dealer and manufacturer decisions. GfK’s data allows manufacturers and retailers to understand – for the first time – country-wide trends, competitor activities, sale prices, and brand market share.In the US tire market generally, unit sales declined by 2.1% YOY, while prices increased 1.5%. Unit sales among P-Metric tires, which account for 84% of the tire specialty marketplace, were down 3.1%.“At a time when growth can be hard to come by, it is essential that tire manufacturers and dealers have the data they need to make smarter decisions,” said Neil Portnoy, Managing Director of GfK’s POS Tracking (Tires) team in the US. “Identifying the opportunities that matter has never been more important – whether that means focusing on Light Truck models, or making sure your prices and promotions are giving you an edge over competitors. The GfK data set provides a powerful advantage at a time when production and stocking decisions need to be made more quickly than ever.“I am pleased that more and more manufacturers and dealers are deciding to use GfK sell-out data to better understand the trends in the channel. The industry is in a constant state of change, and GfK data reports provide a reality check on the impact of those changes on tire dealers.”About GfKGfK connects data and science. Innovative research solutions provide answers for key business questions around consumers, markets, brands and media – now and in the future. As a research and analytics partner, GfK promises its clients all over the world “Growth from Knowledge”. For more information, please visit www.gfk.com or follow GfK on Twitter: www.twitter.com/GfK.

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-- Tires rim size table GfK 3-12-19

David Stanton GfK 908-875-9844 david.stanton@gfk.com