Tire pricing remained flat or declined despite tariffs on Chinese imports

摘要

According to the results of our survey, demand for replacement tires increased in October. Indeed, from a volume standpoint the dealers reported they sold 0.1% more tires last month on a year-over-year basis, following a 0.6% increase in September and a 0.5% increase in August. We are encouraged by the fact that demand trends are holding strong toward the beginning of winter, although down slightly from what we saw at the peak of summer s heat, which is likely due to a lack of harsh winter weather and a tough comparison from 2014. In light of the recent strength in demand trends, we continue to believe the abundance of pent-up demand should lead to decent volume growth throughout the remainder of 2015, despite the fact that 2014 provides tough comparisons. In fact, demand has increased on a year-over-year basis for 19 of the past 20 months, according to the dealers surveyed. Furthermore, most dealers stated they anticipate trends to improve throughout the next three months of this year. Until next time, keep the tires rolling out the door.