Cold weather, hot market: Demand for winter tires depends on weather

By its very nature, the winter tire market is largely dependent on weather patterns for demand.

However, several major winter tire makers report strong sales based not only on weather, but also on company reputation, consumer education and advanced tire technology.

In its first release of data from its point-of-sale tire retail panel, data analytics firm GfK Group found that winter tire sales fell 26.6 percent in 2017 from 2016.

However, it is easy to infer too much from this simple statistic, according to Neil Portnoy, managing director of GfK POS tracking in North America.

"In 2016, winter tires had a significant increase in sales because of a very active winter season," Mr. Portnoy said. "Winter tires are not going out of fashion, but we just saw a reduction from the previous year."

GfK's monthly reports will give a fuller picture on trends in the winter tire market, he said.

Of the winter tire manufacturers interviewed by Tire Business, most reported strong recent sales.

"The seasonal sales of dedicated winter sales are extremely weather-sensitive, with the prior winter season often influencing current season shipments," said Bob Toth, Goodyear director, industry relations.

That said, industry shipments for 2017 are on par with 2016 in the U.S. and up 8 percent in Canada, Mr. Toth said.

By contrast, the U.S. Tire Manufacturers Association said winter tire shipments fell 36.2 percent last year to 4.4 million units, or just 2.1 percent of overall aftermarket passenger tire shipments.

Double-digit growth

Nokian Tyres Inc., a specialist in winter tires, has enjoyed double-digit growth in winter tire sales over the past few years, according to Steve Bourassa, passenger and light truck products, business manager, North America.

"The 2017-18 winter season has been strong, the best in recent years," Mr. Bourassa said. "In eastern areas, winter hit hard and early, effectively offsetting any lack of winter weather experienced in some central or western areas."

Sales of winter tires in North America by Michelin North America Inc. have been strong across the firm's three brands — Michelin, BFGoodrich and Uniroyal — with shipments up 2.7 percent in general and 6.3 percent in Canada, a spokesman said.

As for Bridgestone, the company historically has had a strong position in the winter tire segment, according to Will Robbins, product manager, Bridgestone Americas Tire Operations (BATO).

"We continue to see this trend, thanks to our extensive portfolio," Mr. Robbins said. "Products like our premium Blizzak WS80 and Blizzak DM-V2 tires provide class-leading levels of performance, and the Winterforce 2 tire from our Firestone brand provides an excellent balance of performance and value."

While Triangle Tire U.S.A. understands the overall winter tire market is down from last year, Triangle itself is doing very well, according to Rick Phillips, Triangle vice president of sales.

"We are actually seeing substantial year-over-year increases," Mr. Phillips said. "However, we are a fairly new company in the U.S., with very little history."

Giti Tire (U.S.A.) Ltd. also has seen steady winter tire sales over the past few years, with provincial requirements and insurance incentives in Canada helping, as well as a hard winter cycle, according to David Shelton, Giti director of industry relations and communications.

Changing winter weather patterns are a major factor in winter tire sales, according to the tire makers.

"Good snowfall will always help to remind consumers about the need for winter tires," Mr. Bourassa said.

"What we've noticed with the changing weather patterns are how some consumers will delay their purchase until after New Year's if they don't see any snow prior to the holidays, some even purchasing in late January or February," he said.

"In previous years, if winter tires weren't sold by Christmas, they were on the shelves until the next fall," Mr. Bourassa said.

Despite climate change, the regions that traditionally have seen harsh winters continue to do so, according to Mr. Robbins.

"Consumers in these regions tend to have a better understanding of the benefits of winter tires, both in snow and colder temperatures, that helps drive winter tire purchases," he said.

As the weather goes, so go winter tire sales, according to Mr. Phillips.

"If snow comes early, we typically will see a spike in winter tire sales," he said. "The consumer rationalizes this by getting more use out of the tires than they would if the first snowfall comes later in the season."

Consumer hesitancy

Other factors also affect winter tire sales, according to the experts.

"(There is) consumer hesitancy, and lack of desire, to deal with two sets of tires per vehicle and the twice-annual changeover," Mr. Shelton said.

"The growth of the all-weather tire category leads consumers to believe they only need one tire set for all climatic conditions," he said.

Carryover stock with dealers and distributors play a role in winter tire shipments, as do wear-out rates, according to Mr. Bourassa.

"In addition, economic factors also have a role in winter tires, where some years it is simply more affordable for some consumers to purchase winter tires," he said.

Canadian winter usage requirements, as well as regional "traction laws" in states such as California, Colorado or Nevada, help drive winter tire sales, according to the Michelin spokesman.

Mr. Toth noted Goodyear is employing new technologies that enhance the snow and ice traction capabilities of all-season tires that allow them to earn the Three Peak Mountain/Snowflake symbol.

He did not elaborate on which technologies are being used but said the Goodyear Assurance WeatherReady and Eagle All-Weather Enforcer tires have earned the symbol, he said.

Consumers are also becoming more knowledgeable, according to Mr. Robbins.

"Consumers are becoming better educated on the benefits of winter tires and aware that their safety depends on the right tires, not only for snow and ice performance, but also in colder temperatures," he said.

Consumer knowledge may also drive the higher winter tire sales in Canada, according to Mr. Robbins.

"While it's hard to make a direct correlation, research suggests there has been a drop in winter weather-related accidents, as well as a reduction in serious injuries and fatalities since Quebec made winter tires mandatory," he said.

Mr. Toth cited reduced auto insurance premiums in Ontario as a factor in increased Canadian winter tire sales, as well as low-interest loans in Manitoba for the purchase and installation of winter tires.

Mr. Bourassa credited the Tire and Rubber Association of Canada (TRAC), in conjunction with the federal and provincial governments, for raising consumer awareness in Canada about the benefits of using winter tires, as well as provincial incentives.

All the companies said they have an ongoing commitment to the continuous advancement of winter tire technology. That includes studded tires, despite continuing state laws that restrict their use.

"New developments in modern studded tires have shown significant reductions in noise levels and road wear often associated with studded tires," said Mr. Bourassa, whose company has just introduced a new generation of high-tech winter tires such as the Hakkapeliitta R3.

Studded tires

Studded tires remain the consumer preference in Nordic countries, such as Finland and Norway, according to Mr. Bourassa.

"Nokian Tyres will remain committed to building innovative studded tires with great performance and improved environmental benefits," he said.

The Michelin spokesman said that tread compounds are key to flexibility in extreme cold climates.

"Studded tires are a minority usage, but not to be ignored," he said. "It appears to be more regionally focused, particularly Northwest and Alaska, and we expect they will continue in the immediate future."

Mr. Robbins said Bridgestone's tread compounds, such as the Multi-Cell compound used in the Bridgestone Blizzak WS80 tire, provide studless winter performance equal to or exceeding that of studded tires.

"Studded tires still have a place in the market today, but typically are available in more value-oriented offerings as a way to increase ice and snow performance when needed," he said.

Mr. Toth said Goodyear's UltraGrip Ice WRT has a tread compound that remains flexible in low temperatures that provides excellent grip in snow and ice.

"While our UltraGrip Ice WRT is specifically designed to provide excellent severe weather and ice traction without metal studs, it does include stud pin holes in those sizes popular for light trucks and can be studded at the operator's discretion," he said.

While studless tires, such as the Giti GT Radial WinterPro HPI, are suited for urban areas, studded tires are still the best option for less densely populated areas with less maintained roads, according to Mr. Shelton.

Giti's new studdable GT Radial IcePro 3 is designed for those conditions.

Nevertheless, manufacturers will continue to seek ways to improve winter grip without studs and without sacrificing other attributes, Mr. Phillips said.

Rubber compounding, tread design, tire construction and tread elements such as siping are important factors in that effort, he said.

"The goal is to provide better winter tire traction without sacrificing overall tire performance," he said.