Don’t let last year’s lackluster winter season fool you. Canadians still need winter tires.
While it’s impossible to predict what kind of winter Canada will see this year, tire retailers may be wondering how last year’s lack of snow will impact this year’s winter tire sales. Will Canadian consumers shy away from buying winter tires this year because they didn’t really need them all that much last year?
“Winter tire sales are difficult to predict,” admits Steve Bourassa, North America Director of Products and Pricing for Nokian Tyre. “Several variables can influence the market, including weather, economic conditions, tire replacement cycles and new vehicle sales. Weather conditions create peaks and valleys in volume from year to year, largely dependent on timing and volume of snowfall in any particular year.”
Even though last winter wasn’t as punishing as Canadians are used to, “this is still winter in Canada,” adds James McIntyre, Vice President of Sales, Canada for Sailun Tire Americas.
In addition, economic trends here in Canada are likely to impact tire sales this year. “With the cost of housing in downtown core areas, more people live outside the city and must commute,” McIntyre adds. “Even with a relatively mild winter, if you’re spending that much time on the road, I would always choose safety. And winter tires are not just for snow—they are for the cold, and they help you go, stop and turn much more safely.”
The bottom line, McIntyre explains is that this should be a decent winter tire season. “I think retailers will still have a good season,” he says. “In certain markets, they will sell their share of winter tires, and then they’ll add in some other 3PMS products like all-terrain or all-weather types of products.”
The only parts of Canada where last year’s winter weather won’t impact this year’s winter tire sales are the provinces (or parts of provinces) where winter tires are mandated by law. “Quebec is less dependent on seasonal conditions to drive winter tire sales due to mandatory winter tire requirements,” adds Nokian Tyre’s Bourassa. “Most other Canadian regions have a correlation between winter tire sales and the weather in that region during the fall, or the late season snowfall that some might have been caught in during the transition to spring.”
Rachel Swenson, Senior Product Planner, Bridgestone Americas agrees. “What’s more important than last season’s weather, is the weather we have early in this year’s winter season,” she explains. “If there’s a lot of snow and ice early on, people will often run out to get their winter tires. So last year’s winter season shouldn’t have too much of an effect on this year’s sales.”
All-weather tires vs. winter tires
With a growing number of tire manufacturers offering all-weather tires, retailers may well wonder if this relatively new tire category will take a bite out of traditional winter tires sales. “We’re not really seeing winter tires suffering,” Swenson says. “All-weather tires may be taking a bite out of the all-season tire market, but not out of the winter tire market. Consumers who have winter tires understand the value proposition, and they know the benefits of winter tires.”
Sailun Tire’s McIntyre agrees. “Most Canadians are still big proponents of dedicated winter tires, particularly in areas that get harsh winters or where long commutes are the norm,” he says. “All-weather is a convenience option for some people who can’t, or don’t want to store their other season option. By offering both winter and all-weather tires, and by educating consumers about the benefits and limitations of each, retailers can effectively navigate the evolving market landscape.”
Nokian Tyre’s Bourassa notes that Canadians are still, “proponents of safe winter driving,” but admits that, “there has been a slight decrease in both all-season and winter tire shipments into the market over the past five years. It seems all-weather sales are being driven by consumers who are opting for a safer alternative to the typical all-season tire, while other consumers are choosing all-weather tires as a reasonable replacement for winter tires in areas with milder winter seasons. Depending on the vehicle, some may be purchasing an all-weather touring tire, while others are opting for an all-terrain tire [with the three-peak mountain snowflake logo].”
Adding EVs into the mix
One of the key factors tire retailers need to consider as they plan for the coming winter tire season is how many of their customers drive electric vehicles (EVs). “Electric vehicles are much heavier than their ICE counterparts,” Bourassa explains. “While there are few statistics available showing winter tire acceptance on EVs, every EV owner should consider winter tires to help with dangerous braking distances on slippery surfaces.”
Like it or not, electric vehicles are altering the winter tire landscape, adds Sailun Tire’s McIntyre. “The unique characteristics of EVs—such as increased weight, instant torque, the need for energy efficiency, quieter operation, and regenerative braking—are influencing winter tire design and development. At a minimum you have to look at the weight of the vehicle and ensure that you have the load index to cover the specific vehicle.”
That said, EVs aren’t simply changing the winter tire landscape. They’re having an impact on the tire market overall. “It’s one of those things that we’re considering across the board for all our tire segments,” says Bridgestone’s Swenson. “When it comes to winter tires, electric vehicle owners need them as much as anyone else. Besides the added weight and torque, we also have to consider the fact that electric vehicles don’t coast, which adds some complexity to what you need from the tire itself. This doesn’t mean we’re re-engineering [our tires], but we are keeping these requirements in mind for future developments.”