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NPD: Tire Sales Maintain Traction Despite Higher Prices

Amidst elevated prices and altered driving behaviors, unit demand for tires neared pre-pandemic levels in 2021.

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The automotive aftermarket was no stranger to the price increases that spanned much of retail in 2021, and that included the replacement tire segment, The NPD Group says. While average selling prices within the total auto aftermarket increased 14% in 2021, compared to 2019 (pre-pandemic), prices for consumer replacement tires grew 13%.  Despite elevated prices and altered driving behaviors, unit demand for tires neared pre-pandemic levels in 2021.   

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“The tire industry, like many others, is experiencing the effects of a shift in overall consumer behavior as it relates to pricing and demand,” said Nathan Shipley, automotive industry analyst for NPD. “Driving behavior has changed over the past two years but the needs are still there. Consumers are currently focused on getting what they want, while they can, with what is available to them at retail stores.”

Tire sales volume swings in the modern trade channel, which includes tire replacement retailers that are not dedicated solely to selling tires, have been dramatic over the past two years, according to NPD. These swings can be attributed to the pandemic and related store closures that affected much of the retail industry. Average prices for passenger-car and light-truck tires soared in 2021, with all major brands contributing to the price increases. When comparing the fourth quarter of 2021 to the same period in 2019, average prices of passenger car and light truck tires increased by more than 20%.

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