By now, everyone in the tire industry knows that premium materials are being used more and more on new vehicles and will be used on the rest of the cars and trucks of the future.
That means premium materials will be a major part of the price of the tires in the next couple of years.
However, a new research firm has analyzed tire production for the last 30 years to see if premium materials could replace some of the traditional materials that make up the majority of the industry.
The researchers examined the supply chain of the tire production industry and concluded that premium material production has actually been increasing.
In fact, in the last decade, the number of premium materials has more than doubled and is now the biggest market for premium tires, according to the report.
“A lot of companies that have come out of the car industry have used premium materials, but in general they’ve been replacing the existing materials with premium ones,” said Gary Fincher, president of the research firm Daimler’s Premium Materials Group.
“So this is going to be the next big thing, and the reason why they’ve used premium is that it’s going to lower the cost.
They want to get the tires cheaper.”
According to the study, a typical premium vehicle produces about 40 million tires annually, and some premium vehicle makers have plans to produce more than 150 million tires by 2020.
“If you have a premium product, the average price is going be lower than what you would have gotten with a lower quality product,” Fincheber said.
The study found that in addition to premium materials producing more tires, premium production is also creating a new market for the vehicles.
“A lot more of the vehicles are being produced by premium manufacturers and their suppliers are using premium materials,” Faccher said.
In addition to producing more cars and light trucks, premium vehicle manufacturers are also starting to develop other vehicles, such as light trucks.
“The other market is the SUV,” Foccher said, referring to the larger SUV that is popular in the U.S. But he noted that this market is still in its infancy.
“The vehicle industry is really still a small part of our economy,” he said.
“It’s not as big as some of our other industries.”
While the study found a lot of premium products are used on vehicles, there is still much room for improvement in the industry to become more competitive.
“Premium materials are not going to replace the traditional industry.
They will only take it up to a certain point, but that point will probably be around 2030, not 2040,” Focher said of the market that is already dominated by premium materials.
Daimler is one of the major players in the premium vehicle market.
“We do our own production in Europe and Asia and the U to meet the needs of our customers,” said Mark Glynn, vice president of Daimlers Premium Materials.
“As more and the market gets bigger, we’ll look for other ways to make premium products available.”
“We know that if we’re making high quality tires, the people are going to want them, so we want to make sure we’re not creating an environment where our customers are afraid to buy a vehicle because of a problem with the quality of the material.”
Finchey said that with premium tires becoming more popular, the cost of the materials will go down.
“I think the next time we see a major premium tire manufacturer going into the premium product market, we’re going to see an increase in the price,” he explained.
“I think premium materials in general will be in demand in the years to come,” Fcaught said.