Restructuring Tire Original Equipment Strategy

Within the automotive industry ecosystem, tires, as core components that directly impact vehicle safety, handling, and comfort, have always been a strategic competitive advantage in the original equipment (OE) market.

For tire brands, successfully entering the OEM's OE system not only means stable orders and sustained cash flow, but also leverages the vehicle brand's endorsement to achieve "on-vehicle exposure," subtly influencing end-consumer purchasing decisions. This brand penetration, from the B-end to the C-end, has made the OE strategy recognized as the industry's "golden path."

However, the current domestic tire industry has fallen into a collective "cult of quantity": some companies use "number of vehicle models supported" and "number of lines supported annually" as core KPIs, blindly pursuing partnerships with more OEMs and covering a wider range of models while ignoring the differentiated needs and value propositions of user groups in different market segments.

This lack of precise strategic positioning is leading to a continued imbalance in the input-output ratio of the OE market, and the predicament of the commercial vehicle OE market is a prime example of this problem.

As a means of production, commercial vehicles' core demands revolve around "economy" and "durability." For commercial vehicle owners, tires aren't just a vehicle for brand value, but rather a key component in controlling operating costs. The replacement cycle, wear cost per mile, and ease of repair and maintenance directly determine a vehicle's profitability.

However, some tire companies, when entering the commercial vehicle original equipment market, have adopted the same brand mindset as the passenger car market, investing significant resources in negotiations with OEMs and certification processes. They attempt to cultivate an "industry-leading" brand image by increasing the number of tires supplied, but fail to accurately meet the core performance needs of commercial vehicle users.

For example, if original equipment tires developed for long-distance freight vehicles overly prioritize quietness while neglecting wear resistance, users will likely face repeated replacements in the short term, driving up operating costs and fostering a negative perception of the tire brand as "lacking durability."

This "for-the-sake-of-supply" strategy ultimately results in companies investing high certification and distribution costs in the commercial vehicle market, but failing to solidify their brand value through word-of-mouth. Instead, they fall into a vicious cycle where "the higher the number of tires supplied, the more complaints they receive."

In stark contrast to the commercial vehicle market, the mid-to-high-end passenger car market demonstrates a positive logic of "precise matching, value transmission, and brand premium." Mid-to-high-end passenger car users (such as luxury brand owners and users of high-end new energy vehicles) have long since moved beyond the vehicle as a means of transportation, pursuing a sense of quality, technology, and personalization. Tires, as the only component in contact with the ground, naturally become a crucial window into their perception of vehicle quality.

For example, luxury SUVs often prioritize handling stability and wet braking performance. If tire companies can develop original equipment tires with targeted high-grip compounds and deeply integrate tire performance with the vehicle's selling points through OEM promotional materials (e.g., "Equipped with XX brand high-performance tires, deliver an exceptional handling experience"), they can not only successfully enter the mid-to-high-end original equipment market but also leverage the premium value of the vehicle brand to establish a "high-end, professional" brand perception among users.

For example, an international tire brand customized an original equipment tire for a high-end new energy vehicle model. Its low rolling resistance design helps improve the vehicle's range. This feature, heavily promoted by the OEM, not only made the tire a "hidden plus" when purchasing the vehicle but also boosted its sales in the replacement market. Many users actively chose the same tires as the original equipment when replacing their tires, creating a virtuous cycle of "original equipment driving replacement."

A comparison between the commercial vehicle and mid-to-high-end passenger car markets demonstrates that tire companies' original equipment strategy is not a "quantity race" but a systematic project of "precise matching." To overcome the current imbalance in the input-output ratio in the original equipment market, companies need to restructure their strategies along three dimensions:

First, establish a "user-demand-driven" product development logic, abandoning the crude "one product fits all" model and developing differentiated products tailored to the cost-sensitive needs of commercial vehicles, the performance demands of mid-to-high-end passenger cars, and the value-for-money demands of economy passenger cars.

Second, deepen "value co-creation" with OEMs, moving beyond a simple "supplier-buyer" relationship. For example, by engaging in vehicle development early in the process, customizing tire solutions based on vehicle performance targets (such as range, handling, and quietness), and transforming tire performance into a core selling point for the vehicle, achieving a win-win for both tire and vehicle brands.

Third, strengthen the value chain from "original equipment" to "replacement." Through user education (such as introducing tire maintenance information in owner's manuals and launching a "genuine-like" product line in the replacement market), brand recognition accumulated during the original equipment phase can be transformed into repeat purchases by end users.

Amid the automotive industry's shift toward electrification and intelligent driving, tire functions are expanding from "load-carrying and rolling" to "intelligent sensing" (such as tire pressure monitoring and wear warnings). The strategic value of the original equipment market will become even more prominent.

For tire companies, only by moving beyond the "quantity myth" and focusing on differentiated user needs can the original equipment strategy truly become a "golden path" for brand penetration, rather than a "bottomless pit" of internal resource consumption.