Uncovering the Untapped Tire Retail Business Potential of the Electric Vehicle Boom
Frédéric Baroin
Global Head of Automotive Business at Anyline
The electric vehicle (EV) boom is no longer a future phenomenon but a current shift reshaping the automotive industry. As of 2023, global EV sales are projected to reach 14 million units, representing 18% of total car sales, up from 14% in 2022. China leads the market with 60% of all global EV sales, while Europe maintains over 20%, and the U.S. sees steady growth despite recent slowdowns. By 2030, it’s expected that 50% of new car sales in Europe will be fully electric.
This rapid growth means tire retailers need to adapt quickly, as EVs require specialized tires due to their heavier weight and higher torque. The shift presents a significant opportunity for businesses ready to meet this demand in a fast-evolving market.
It’s Increasingly Important to Get the Right Tires
While those concerns may be factors for consumers, the right tires can offer a solution. It is more important than ever for consumers to be able to find the right set of tires for their electric vehicles.
Today’s modern EV tires can do a much better job. They are designed to handle more of the instant torque demands of these electric motors at a more efficient and safe level than regular tires. They are also more durable overall. They also tend to offer a nice level of noise reduction to help drivers and passengers enjoy a quieter cabin ride. The key concern here is that special EV tires are also more expensive.
To meet these demands and ensure the proper pricing is in place, it’s critical to ensure each vehicle owner gets the right tires for their car. They must get the proper tires to minimize wear and tear and costs. One way to do that is to empower drivers by ensuring they can scan their own tires to find replacements. This allows them to be 100% confident that they are only purchasing tires that are perfectly designed to meet the demands of the electric car. The incorporation of a tire size scanner on a retailer’s website can help with this. This is a simple resource available through Anyline that can change the game for retailers.
Customer Loyalty
Building customer loyalty is a big factor in doing well through the EV boom. The key here is not just to take advantage of the higher demand for vehicle tires but also to build brand awareness and customer loyalty while doing so.
One way to do this is to digitize, something many tire manufacturers and retailers are already doing. Tesla is a great example. The business strives to centralize operations, including invoicing, distribution, and logistics. Customers can upload their personal documents without interacting with a salesperson after digitizing the entire system. That is just one example of why Tesla vehicle owners are so equipped to handle the needs of their cars. Tesla managers do vehicle handovers in five to ten minutes, whereas traditional automakers do so over a 30-minute period to handle all of the customer-facing and administrative tasks required.
Digitalization enables more efficiency, reliability, and speed. That is something that EV owners want and expect. It helps to build a stronger customer experience and helps encourage a good relationship between the retailer and the customer. That way, they are encouraged to come back to have all of their needs met on a consistent basis.