CNBC | Why Tire Companies Love EVs @CNBC | Uploaded March 2024 | Updated October 2024, 11 hours ago.
The tire business can be a brutal one - low growth, low margins and extreme competition. Tire makers are at the mercy of ups and downs of raw material prices. About half of customers are largely indifferent to the brand of tires they buy. Price is the main differentiator. But industry analysts say the rise of EVs provides tire makers with the biggest growth opportunity they have seen in decades. AlixPartners estimates that tires on EVs can cost 50 percent more and require replacement 20 percent more frequently. Watch the video above to learn more.
Chapters:
00:00 - 01:16 Title card - Why tire companies love EVs
01:23 Chapter 1 - A tough business
03:37 Chapter 2 - EV revolution
09:31 Chapter 3 - The potential
Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Audi, Chevrolet, Continental, Ford Getty Images, GMC, Kia Michelin, Polestar, Porsche, Rivian, Tesla, Volkswagen
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Why Tire Companies Love EVs
The tire business can be a brutal one - low growth, low margins and extreme competition. Tire makers are at the mercy of ups and downs of raw material prices. About half of customers are largely indifferent to the brand of tires they buy. Price is the main differentiator. But industry analysts say the rise of EVs provides tire makers with the biggest growth opportunity they have seen in decades. AlixPartners estimates that tires on EVs can cost 50 percent more and require replacement 20 percent more frequently. Watch the video above to learn more.
Chapters:
00:00 - 01:16 Title card - Why tire companies love EVs
01:23 Chapter 1 - A tough business
03:37 Chapter 2 - EV revolution
09:31 Chapter 3 - The potential
Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Audi, Chevrolet, Continental, Ford Getty Images, GMC, Kia Michelin, Polestar, Porsche, Rivian, Tesla, Volkswagen
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to make extra money outside of your day job? Take CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams. Register today and save 50% with discount code EARLYBIRD: https://cnb.cx/3Iwblnk
Connect with CNBC News Online
Get the latest news: cnbc.com
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
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Why Tire Companies Love EVs
