Case Study : Transformation of Tyre Industry Due to Electric Revolution
Over a century, the tyre industry has played a pivotal role in the mobility landscape. However, the advent of Electric Vehicles (EVs) poses a challenge to the conventional tyre manufacturing sector, predominantly oriented toward producing tyres for Internal Combustion Engine (ICE) vehicles.
Surge in the EV Market: The EV market has witnessed exponential growth, surpassing 10 million in sales by 2022. This shift is evident in the market share, which tripled from 4% in 2020 to a substantial 14% in 2022. Noteworthy growth is observed in prominent countries like China, Europe, and the US while emerging markets such as India are also embracing the shift towards EVs. Government policies, incentives, and the potential impact of high oil prices further accelerate EV adoption, reshaping the automotive landscape.
Tyres: The adoption of EVs has triggered a heightened demand for specialized tyres. Unlike their gas-powered counterparts, EVs generate instant torque, resulting in standard tyres wearing 30% faster. The unique design of electric vehicles, wider and lowerprofile, necessitates specialized tyres for optimized stability and traction. Efficiency becomes crucial for EVs like Tesla, heavily reliant on battery power. Tyre manufacturers have responded by focusing on low rolling resistance tyres to enhance range and fuel efficiency. This shift is pivotal for meeting the standards set by electric car manufacturers like Tesla, Nissan, BMW, and Chevrolet.
Response to Electric Vehicle Challenges: Major tyre manufacturers, including Yokohama Rubber and Michelin, are actively adapting to the electric revolution. Yokohama Rubber concentrates on technological development for EVs, delivering specialized tyres like the "ADVAN“ brand for new electric models. Michelin introduces dedicated tyre ranges, such as MICHELIN Pilot Sport EV and MICHELIN e·Primacy, catering to varied EV performance requirements. This strategic response positions these players at the forefront of addressing the unique challenges presented by the surge of EV.