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Focus On Industry ‘We want to be the best in the value product tier’

SAILUN SHOWCASES ALL-SEASON TOURING AND LIGHT TRUCK TIRES, DISCUSSES NEXT GROWTH STEPS

By Greg Smith

Sailun Tire Americas showcased its Inspire all-season touring tire and its Terramax HLT all-season light truck tire to key associates of its exclusive U.S. distributor, National Tire Wholesale, and their customers at Atlanta Motor Speedway in mid-September.

The event, during which participants compared the Sailun tires against a Tier 1 brand, was designed “so that dealers got the chance for a hands-on, blind tire test to illustrate that the meaning of value is much more than just price-based,” says Mark Pereira, marketing communications manager for Sailun.

Attendees drove Chevrolet Impala Premier sedans and BMW X3 xDrive30i CUVs on a tight autocross course set up in the speedway’s parking lot.

Sidewalls were buffed to hide the identity of the tires, and drivers were asked to not look at the tires before they ranked them. At the end of the event, Sailun showed the results of the rankings, in which their tires performed very well versus the Tier 1 brand.

Sailun ‘inspires’ with its all-season touring tire

The Inspire is an • 3D Mult-Sipe all-season tourTe c h n o l o g y , ing tire designed which “expands for fitment on a and expels subwide range of s t a n c e s f o r popular comconfident perpacts, sedans, formance that SUVs and CUVs, r e g e n e r a t e s according to with tire wear,” Sailun officials. according to The tire feaSailun officials. tures: The new Sailun The Inspire • Sailun’s proprieInspire comes in is currently availtary SertaGrip com48 popular sizes. able in 48 popular pound for increased OE replacement traction and control in both tire fitments, ranging from 14 wet and dry conditions, plus inches to 19 inches in diamlongevity; eter. Fifteen additional sizes, • The company’s SilentTread ranging from P225/55R16 to pattern, which uses staggered P255/45R20, are in developtuning technology and a variment. The tire also comes with able pitch sequence for a a 70,000-mile/60-month limited quiet, comfortable ride, and; tread life warranty.

Sailun Tire Americas’ Brian Mielko, vice president of sales, and Mark Pereira, marketing communications manager, stand between the test vehicles during their company’s event in Atlanta.

But as Brian Mielko, vice president of sales for Sailun, said, “It’s great that we compared so well against the Tier 1 brand, but the price difference between the two is the issue for us.”

Pereira said that in the Atlanta market, the Tier 1 brand was selling at a 70% premium versus Sailun’s Inspire tire and at an 80% premium versus the company’s Terramax HLT tire.

“An event like this provides us with an opportunity to debunk the many myths out there about value tier brands and tires from overseas,” he told Modern Tire Dealer. “We get a chance to explain how the Sailun brand was created, how we deliver products with proven performance and high standards, and why Sailun is the top alternative to the big-name brands out there for drivers seeking to save some money without sacrificing safety, quality or performance.”

During the event, Christine Rouleau, sales director for Sailun, said, “We want to be the best in the value product tier.”

She used Modern Tire Dealer data that showed attendees Tier 3 and Tier 4 brands have continued to gain PLT market share steadily since 2013. During this time, those tiers have grown by almost 4%, now standing at about 30% of the market.

Rouleau told NTW attendees that “you establish how you want to sell our brand in your markets.” At the same time, she said it was Sailun’s responsibility to supply quality, build trust and offer support to them. “We need to make sure you know and trust that we stand behind you and our products that you sell.”

Sailun’s consumer market research shows that consumers depend on tire retailers for brand recommendations and at the same time are looking for a good value proposition, said Rouleau.

She cited U.S. Tire Manufacturers Association statistics that show the U.S. replacement market for PLT growing from an expected 247 million units in 2019 to 250.4 million units in 2021, an annualized 0.9% growth rate. Within this same time period, she further pointed out that passenger tires would gradually decrease as a percent of the total, as light truck tires would increase.

Sailun Terramax covers wide range of SUV/LT fitments Sailun is targeting the evgrooves that channel away er-growing SUV and light water, giving vehicle owntruck market with the new ers “the traction they need Terramax HLT, a premium, to drive with confidence,” all-season tire that has according to Sailun officials. been designed to deliver a The tire is currently quiet, stable ride thanks to available in more than its special, noise-reducing 45 P-metric and LT sizes, tread pattern. ranging from 15 inches to

The Terramax HLT also 20 inches in diameter. Two features a large contact new sizes, a 235/65R16/C area for enhanced handling and a P285/45R22, will and tread wear, as well as join the line next year, say four extra-wide tread Sailun officials.

The Terramax HLT is Sailun’s new all-season offering for SUVs and light trucks.

A drift car, sponsored by Sailun, was on hand to give attendees a fun ride while also showing off the capabilities of Sailun’s Atrezzo UHP tire.

Drivers were asked to drive identical vehicles back-to-back to experience the performance differences between the Sailun tires and the Tier 1 tires.

Drivers were told to apply the brakes as hard as possible for the ABS system to kick in to show the tires’ wet grip.

Adding further to the complexities of the market, Rouleau said that 15- and 16-inch rim diameters would continue to decrease as diameters continue to increase. She said 17-inch would remain the dominant size segment through 2021.

Pereira said Sailun is committed to providing its dealers updated point-of-sale and merchandising, customer training, and customer incentives and promotions for its line of tires. This also includes more events, such as track days, sponsorships and customer co-op promotions.

Sailun Tire Americas is part of Sailun Group Co. Ltd., which is based in Qingdao, China. Its parent company is Mesnac Co. Ltd., which was founded in the 1990s to develop and manufacture tire building equipment for the industry.

In 2003, Sailun’s first plant was built in

Christine Rouleau, director of sales for Sailun, explained how the company has positioned itself in the value tier.

China. Today, the company has five factories, with four based in China and one in Vietnam, said Rouleau. She said all of Sailun’s PLT tires are coming from its Vietnam-based plant, but “by the end of the year, all of our tires will come out of our Vietnam plant, except for a handful of tires.”

The company also is in the process of building a new TBR plant in Vietnam as part of a joint venture with Cooper Tire & Rubber Co.

Rouleau said Sailun is the 18th largest global tire company, with tires sold in 167 countries and research and development facilities located in Asia, Europe and North America. Sailun currently supplies 1.5% of the global aftermarket with PLT tires and 3.5% with TBR tires. Global sales have grown from $296.6 million (USD) in 2008 to $2.3 billion in 2018. ■