Goodyear said its research suggests the European market will undergo a "significant shift" between 2023 and 2028, with Tier 2 and 3 segments expected to grow, potentially at the expense of the Tier 1 segment.
Goodyear attributes this trend to inflationary pressures impacting consumer preferences and purchasing behavior.
Specifically, the research suggests the Tier 2 segment will gain two to three percentage points of market share by 2028 as consumers seek "value-driven" options without compromising safety.
Despite an anticipated slight decrease in volumes, the premium tier is expected to maintain its prominence as the primary revenue driver within the market, Goodyear said. This is particularly evident in the larger rim size categories.
The objective of the study was to gain an in-depth insight into consumers' perspectives on mobility, their perception of tire brands, and the criteria that guide purchasers' decision-making.
Among Goodyear's key conclusions:
- Nearly three-fourths of consumers consider tires as highly important and not a commodity as commonly assumed.
- Brand awareness and reputation are the primary factors influencing consumer tire choices.
- Consumers have different needs and preferences when choosing tires in terms of features and benefits.
Brand awareness and reputation are the primary factors influencing consumer tire choices with 35% of responses. This is followed by personal prior experiences (25%), tire test results conducted by external entities such as specialized magazines (24%), and advice received from dealers (23%).
More than a third (35%) of consumers base their choices on tire performance, 51% prioritize tires that offer an optimal balance between quality and price and 14% of consumers are price-sensitive in their tire selection.
As such, Goodyear intends to keep the Goodyear brand as its premium option, while Dunlop will receive renewed focus and investment as a strategic player within the high-end value segment of the market, appealing to drivers looking for long-lasting quality at a fair price.
The Dunlop car tire range will expand to cover 84% of the market from 2024 with summer, winter and all-season products.
For drivers seeking affordable and durable tires, the company will offer brands such as Avon, Cooper, Dębica, Fulda and Sava.
Avon and Fulda will continue to be available across Europe and keep their significant role in the low-end value segment in the UK and in Germany respectively, where they hold considerable history and recognition in the value tier.
Dębica and Sava will continue to be available across Europe and keep their key role in the budget segment in the Eastern European countries.
Cooper will have a long-term focus on 4x4 vehicle fitments, continuing its strong off-road position.
