Tire dealers' inventories are bursting
Inventory is an important issue that all tire businessmen must face. For manufacturers, most of them produce products while selling them, but there are still product inventories and raw material inventories; for tire dealers, constantly buying and selling inventory is the top priority; for tire stores, sometimes they want to minimize inventory, and sometimes dealers want to get some bargains for promotions. All kinds of tastes are complicated and important!
In fact, dealers are the ones who value inventory the most. Now many tire companies produce according to orders, and the proportion of tire store inventory is also decreasing due to convenient logistics. But dealers are different. Dealers do not produce tires or sell tires directly, but resell them, which means making money from inventory.
Tire dealers' inventory exploded
Everyone knows that China is the world's largest tire producer. In recent years, various capitals have poured in, and new factories have sprung up like mushrooms after rain. This has led to a serious oversupply in the tire market.
It is understood that data from January 2025 showed that the capacity utilization rate of large tires was 56.56%, a month-on-month decrease of 3.41 percentage points. The average inventory turnover days of large tire companies are 44.92 days, a month-on-month increase of 0.73 days.
When you walk into some tire factories, you can see that the warehouse is full of backlogs of tires, from the ground to the ceiling, densely packed, like a tire fortress without sunlight. These tires take up a lot of money and storage space, but it has been difficult to find buyers. In order to save sales, tire companies are raising prices while promoting rebates, stimulating sales growth by raising prices in public and lowering prices in private.
The overall tire market is weak
How is the current market? How is the current market after the terminal store survey?
Shop owner: How should I put it? The "number of customer orders" is okay, but the "customer price" cannot go up. Overall, it is still not good!
Especially the business after the New Year, it is even more deserted. No one buys in the store, but the tire manufacturers are still producing non-stop, which leads to the explosion of the warehouses of manufacturers and dealers.
The tasks are getting heavier and the inventory is getting more and more
Every year, various promotions of major tire factories are held one after another. Although everyone gets together to promote new products, dealers must take orders back from any meeting. Only you are willing to purchase or hold goods, and you have no right to refuse. Tire companies have plenty of ways to get you to buy from them, including calling each other brothers, eating and drinking, and using threats and inducements.
Tire dealers know that the market is not good, but they can do nothing about it. If you don't do it, there are plenty of people who will. Now tire companies can easily change agents. Unless your channels are strong, tire dealers can never say no to manufacturers.
Business is like this, the fittest survive. If you choose to accept inventory, you must bear the possible benefits and problems. We want to have rich connections to buy goods here and ship them there, but the reality is always crueler than we imagine. How many people can only quietly exit the market because of poor management, and how many people may also be separated from their families because of poor management.
For tire dealers, inventory is tire products, and warehouses are simply money and cash flow. If dealers can arrange inventory reasonably, they can make a lot of money, otherwise it will be the opposite. This requires dealers to have keen market insight, otherwise they will lose everything if they are not careful.
