Shaping the Future of Tire Distribution
3 Key Trends to Watch in 2025
As the largest wholesale tire distributor in the United States, American Tire Distributors (ATD) is committed to staying ahead of market shifts and shaping the future of tire distribution. Our focus on serving auto and tire shops, and auto dealerships with the broadest assortment of top tire brands, wheels and shop supplies all with same or next day delivery through our vast supply chain network enables us to stay ahead of the evolving needs of our customers, their consumers, and our strategic partners.
We see three significant trends—downtiering, the aging car parc, and shifts in customer loyalty—that will change how America’s drivers will influence the tire and aftermarket industry. Here’s how ATD is leading the way.
1. Meeting Consumer Needs with Affordable, Quality Options
As inflation and tariffs continue to impact household budgets, consumers are increasingly prioritizing affordability. This shift, known as “downtiering” in the tire industry, has driven demand for budget-friendly tires without compromising on quality. Recent data indicates that tier 4 tires have increased their market share by 2.2% year-over-year, underscoring the shift toward more economical options. While major tire brands have seen changes to their market share, smaller brands are gaining traction as reliable, cost-effective alternatives.
At ATD, we understand that while consumers may be opting for more affordable tires, they still expect safety and reliability. Backed by our agile supply chain, we ensure that quality products are available across all price points, providing our customers and their consumers with a diverse range of dependable options.
2. The Aging Car Parc: An Expanding Opportunity for Tire Retailers
With the average age of vehicles on the road continuing to rise, the demand for maintenance and replacement tires is set to grow. The average age of cars and light trucks on the road in the U.S. has reached a record 12.6 years as of 2024, and vehicles aged six to 14 years are projected to make up 70% of those in operation over the next five years. This trend represents a significant opportunity for the industry as aging vehicles require more frequent servicing, including tire replacements.
ATD is ready to support our customers in capturing this opportunity. By providing data-driven insights that guide inventory selection and competitive pricing we help our customers align with the increased maintenance needs of older vehicles. Our approach ensures that retailers have the right products available to meet the demands of an aging car parc.
3. Evolving Consumer Expectations: The Rise of Flexible Payment Options
As consumer expectations evolve, so does the approach to customer loyalty in the tire industry. Today’s consumers are more selective and increasingly value affordability and flexibility. One key trend is the growth of Buy Now, Pay Later (BNPL) services, with awareness and utilization rising annually. This shift in finance preferences is reshaping purchasing behavior, allowing consumers more flexibility while managing their budgets.
At the same time, many consumers are shifting spending toward essential goods, which affects brand loyalty as customers prioritize value and necessity over brand loyalty.
To meet these evolving needs, ATD continues to enhance customer loyalty initiatives, bolstering efforts to provide trust, reliability, and more incentives that put real money back in the hands of our customers.
We support more than 80,000 customers (equivalent to the seating capacity of the Los Angeles Memorial Coliseum) annually and more than 8,000 customers each day. From independent auto shops to large franchises and big box to auto dealerships, and more. We exist to help tire retailers keep America’s drivers safely on the road.
By staying ahead of downtiering trends, responding to the growing demand for tires for aging vehicles, and adapting to changing consumer expectations, ATD is not just observing industry shifts—we’re shaping them.
