Tire Technology Survey Results

Tire Technology Survey Results
brought to you by Automotive IQ


Are you interested to learn what other companies plan on investing in the Asian tire market relative to 2012? When are the BRIC markets likely to adopt TPMS as a standard? We surveyed our international contacts working in and around the tire industry to help illustrate the challenges they are facing and the direction in investment and R&D that companies are taking.

Tire Survey Results PDF


We asked what the single greatest challenge is that the tire industry is facing and learned that in fact there are 2 main challenges:

Differing Market Requirements: 35%

and

Fuel Efficiency: 31%

As of the 1^st of November, 2012, the European Union required that all new tires carry a label with them to show their fuel efficiency, wet grip performance and noise, and the NHTSA is also looking into creating a similar label. Fuel efficiency will continue to be a major focus as vehicle manufacturers look to every available area of the car to increase efficiency in order to meet tightening regulations.

Tire pressure monitoring systems are already standard on new vehicles in the U.S. and EU and we know that similar legislation is in the process of being implemented in S. Korea (roll-out to be completed by 2015). The BRIC countries are important emerging markets for the automotive industry. We asked what timeframe the experts believe that TPMS will become standard in these markets.

By the numbers:

53% believe that TPMS will be standard on new vehicles in the BRIC countries in 3-5 years. This is represented in the chart above. A further breakdown of the numbers reveals that 70% of OEM and Vehicle Manufacturer respondents agree. The component suppliers themselves are not as optimistic as 44% of them believe it will take 6-8 years for TPMS to become a standard in the BRIC markets.

Direct vs. Indirect TPMS in China

China may choose to pick a winner between the two competing TPMS technologies and doing so would have an impact on the TPMS market as companies not producing the winning technology will have to scramble to gain access to the market. Based on our survey results, the industry remains uncertain although two-thirds of component manufacturers strongly believe that Direct TPMS will become the standard.