Tires are a big investment, and today’s cost-conscious consumers are looking for options that offer value.

With the possibility of tariffs hanging over our heads (tariffs were not imposed at the time of writing), and consumer budgets already stretched to the max, tire retailers may well wonder what they can expect to see as consumers start shopping for replacement tires in 2025.

Joseph Postiglione, Product Segment Manager, PLT & STR at Dynamic Tire says that the passenger tire market continues to evolve to meet consumer demands, and that price will be a factor.

“Purchasing a set of tires is a costly investment,” he says. “Current economic factors, including rising material costs, inflation and foreign exchange rates, are contributing to increasing tire prices. As a result, consumers have become increasingly price-conscious, which has led them to seek budget-friendly options to help manage expenses. In other words, consumers are seeking value in today’s market.”

The bad news for Canadian consumers, explains James McIntyre, SVP Sales Canada / Product Development North America for Sailun Tire Americas is that prices are likely to go up this year.

“Consumers will see some increases in tire prices,” McIntyre explains. “The Canadian dollar, right now, has the biggest impact on this. We have seen a significant decrease in the dollar in 2024, and with current political and economic factors, I see that staying around for at least the first half of the year, if not longer. This could have consumers shift to cost-effective options.”

Cost-effective, doesn’t always mean that consumers will simply be shopping for the lowest prices. In addition to the actual price of the tires, they may also be looking at tire categories that they believe will give them the best overall value in the long term. Categories, that perhaps in the past, weren’t even a consideration.

“Price-conscious consumers are beginning to explore options that are versatile,” explains Postiglione. “For instance, all-weather tires have grown in popularity in recent years, mainly due to the consumers’ mindset that purchasing one set of all-weather tires is more cost-effective than purchasing two sets of tires—all-season and winter. This is becoming most popular in urban areas where storage isn’t available, and becomes an additional expense.”

Ian McKenney, Senior Product Manager at Bridgestone agrees. “The all-weather segment has shown recent growth and will continue to do so in 2025.” In addition, McKenney sees opportunities in other areas as well. “The average age of vehicles is the oldest it has ever been, so the selling of replacement tires for cars that have been around longer than they ever have will continue, and this business will remain steady.”

Electric vehicles
One of the notable pressures on the passenger tire market is the growth in the number of electric vehicles on our roads. “S&P Global Mobility reported new EV sales were expected to be 9% of vehicles in 2024, with that figure estimated to grow to 25% in 2027,” says McKenney. “As a tire manufacturer, that means we have a seat at the table for EVs’ long-term adoptability by ensuring we develop offerings that match their unique performance characteristics. EVs are generally heavier with a lower centre of gravity, affecting braking, handling, acceleration and wear. Our research and real-world experience show EVs go through a set of tires more quickly than their ICE counterparts.”

Sailun’s McIntyre notes that, “EV vehicle adoption is still good in Canada, although it seems to have slowed recently.” That said, with the recent cut in government incentives for EVs here in Canada, as well as a new administration with new priorities in the U.S., only time will tell whether consumers will continue to invest in electric vehicles at the same rate they have in recent years.

Even if they don’t, however, current owners of electric vehicles will still have to replace their tires, especially since, as Bridgestone’s McKenney noted, EVs chew through tires much faster than their ICE counterparts.

In addition, EV owners have specific needs when shopping for tires. “We have seen what the EV tire buyer is worried about,” Sailun’s McIntyre explains. “Range/rolling resistance has now become less important. Instead, mileage/durability and cost are becoming the lead factors.”

Dynamic Tire’s Postiglione agrees. “EVs have unique needs due to their higher torque and increased weight, compared to internal combustion engine vehicles,” he says. “These factors drive demand for tires that can handle greater stress and provide enhanced durability. As a result, there’s a growing demand for EV-compatible tires designed to meet these challenges.”

Postiglione notes that the growing presence of electric vehicles in Canada is reshaping the passenger tire market, “prompting advancements in tire technology, increased manufacturing investments, and a heightened focus on durability to meet the evolving demands of EV consumers.”

As we look forward to the coming changeover season, he offers the following advice for tire retailers: “Overall, tire retailers should prepare for a dynamic spring season in 2025 by stocking a diverse range of tire types and sizes, including affordable options, to meet evolving consumer preferences.”

 

Bridgestone Potenza Sport AS. CREDIT: Bridgestone
The Bridgestone Potenza Sport AS has been engineered to deliver spirited performance in the rain, thanks to a redesigned tread pattern and Bridgestone’s ENLITEN™ technology. It also promises assured handling in on dry pavement and in light snow.

Sailun Erange EV. CREDIT: Sailun
Thanks to Sailun’s tire manufacturing technology, known as EcoPoint3 (EP3), which utilizes a liquid-phase or wet-mixing process, the Erange EV tire delivers better fuel efficiency, a longer lifespan and improved safety in wet conditions.

Triangle EffeXSport TH202. CREDIT: Triangle
Designed to provide exceptional braking and handling, the EffeXSport TH202 delivers impressive traction and reliability that meets the demanding performance expected of the UHP segment. It also offers reduced rolling resistance, making it EV-ready.